Kevin Kolb is buying a $450,000 house. He is taking out a 30 year mortgage at an annual interest rate of 5.25%.
Because he doesn’t have a lot of job security, the bank is requiring a 25% down payment. How much is his down payment?
The bank requires 2 points at closing, how much is this?
Determine Kevin’s monthly payment.
Determine the total interest paid over the life of the loan.
How much did Kevin pay for his house?