You plan to buy a $500,000 house using a 30-year fixed-rate mortgage obtained from your local bank. The mortgage rate offered to you is 6%.
You will make a down payment of 20% of the purchase price ($500,000).
(a) Calculate your monthly payments on this mortgage.
(b) Construct an amortization schedule for the first 2 months. In other words, calculate the amount of interest and principal in each payment for the first 2 months.Follow the example posted on the Moodle.
c) Calculate the amount of interest paid over the life of this mortgage.