Reference no: EM133062629
Question - Guadalupe is buying a home for $389,000 and has come to your bank for a mortgage. Your bank requires a 16% down payment and charges 2 points for the loan. She is seeking a 30-year mortgage and your bank can offer her a 2.15% conventional loan.
a. Determine the amount of the required down payment. Show all steps.
b. Determine the amount of the mortgage. Show all steps.
c. Determine the cost of the 2 points. Recall that points are considered prepaid interest, so Guadalupe will pay this on closing day. Show all steps.
d. Determine the amount of the monthly principal and interest payment. Write out 1) the correct formula with variables (e.g. P0, PN, N, r, etc.), and 2) the correct formula with the numerical values (round your answer to the nearest cent, 3) write the answer in a complete sentence.
e. Determine the total amount Guadalupe will end up paying for her house. Show all steps.
f. Determine how much of the total amount Guadalupe will pay is interest. Show all steps.
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