1. You are eligible for $1026 monthly payment on a 30 year 4.5% fixed rate mortgage. You are interested in a condo whose property taxes are $300 a month and homeowners insurance are $60 a month.
a. How much money can you borrow and what is your monthly payment?
A. $126,455, $713
B. $129,488, $765
C. $131,442, $666
D. $136,267, $806
b. What is the interest and principle portions of your first payment
A. $333, $333
B. $466, $200
C. $493, $173
D. $500, $166
c. What is the principle balance of your mortgage after 15 years (180 payments)?
A. $87,059
B. $88,533
C. $93,125
D. $100,147
d. How much interest have you paid over the past 15 years (180 payments)?
A. $44,383
B. $49,321
C. $62,830
D. $75,497
e. If you increased your monthly payments by $50, how long would it take you to payoff your mortgage?
A. About 26 years
B. About 28 years
C. About 30 years
D. About 32 years