The price of home is $230,000. The bank needs a 5% down payment and one point at 21) the time of closing. The cost of the home is financed with 15-year fixed-rate mortgage at 8.5%.
a. Determine the required down payment.
b. Compute the amount of the mortgage.
c. How much should be paid for the one point at closing?
d. Compute the monthly payment (excluding escrowed taxes and insurance). e. Find the total cost of interest over 15 years, to the nearest whole dollar.
Please show work, and be as detailed as possible.