1. You have decided to buy a house. You can get a mortgage rate of 5.65 percent, and you want your payments to be $1,100 or less. How much can you borrow on a 20-year fixed-rate mortgage?
2. Consider a 30-year, $160,000 mortgage with a 6.10 percent interest rate. After nine years, the borrower (the mortgage issuer) pays it off. How much will the lender receive?
3. Consider a 30-year, $155,000 mortgage with a rate of 6.05 percent. Ten years into the mortgage, rates have fallen to 5 percent. What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate for the same maturity date?