Bob buys a home; actually he starts to buy a home – 30-year mortgage on a $200,000 home with 20% down payment. The mortgage rate is 4% annually and monthly payments grow at 3% annually. Calculate the initial monthly payment. Graph the 360 payment levels using a spreadsheet. A decade into the mortgage Bob has the opportunity to refinance the home. He selects a 15-year, 3% mortgage with level payments. What is the new monthly payment?