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You take out a $230,000 loan at a fixed rate of 6.5% to buy a house. Assume it is a 30 year loan on which

You take out a $230,000 loan at a fixed rate of 6.5% to buy a house. Assume it is a 30 year loan on which you make monthly mortgage payments.

a. what is your monthly payment?

b. how much interest will you end up paying the bank on your mortgage?

c. suppose you change jobs and can now afford $1,000 monthly payments. with the same APR, what amount can you now afford to borrow for your house?

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