(a) Which plan has the lowest total up-front costs? The highest?

(b) What would be the full monthly payment for PITI and PMI for each of the options?

(c) If the Johnsons had enough additional cash to make the 20 percent down payment, would you recommend lender 1 or lender 2? Why?

(d) Assuming that the Johnsons will need about $3000 for moving costs (in addition to closing costs), which financing option would you recommend? Why?

Belinda Johnson’s parents and maternal grandmother have combined their finances and presented Harry and Belinda with $35,000 with which to purchase a home. The Johnsons have shopped and found a house in a new housing development that they like very much. They could either borrow from the developer or obtain a loan from one of three other mortgage lenders.