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Question: You have just purchased a primary home for $315,000 with a 20% down payment on a 30-year fixed rate mortgage, monthly payments, 3.875% interest rate. property taxes are 100 mills with 70 effective mills. fees with this loan are $2250 and it cost 1 point to get the loan rate down to 3.875%, both were paid up front.

A) What is the monthly Mortgage payment?

B) What is the monthly Mortgage payment if the interest rate had been 4.875%?

C) How much less can the borrower with a 4.875% mortgage borrow to keep the same monthly mortgage payment as the borrower with 3.875% if the both borrowers have a 30-year fixed rate mortgage without refinancing over the mortgage term?

D) What is the monthly PITI payment?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M93050271

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