Question: 6. Changes in mortgage principal and interest over time. Explain how the composition of the principle and interest components of a fixed-rate mortgage change over

6. Changes in mortgage principal and interest over time. Explain how the composition of the principle and interest components of a fixed-rate mortgage change over the life of the mortgage. What are the implications of this change?

7. Calculating required down payment on home purchase. How much would you have to put down on a house with an appraised value of $105,000 when the lender required an 80 percent loan-to-value ratio?

9. Estimating closing costs on home purchase. How much might a home buyer expect to pay in closing costs on a $220,00 house with a 10 percent down payment? How much would the home buyer have to pay at the time of closing, taking into account closing costs, down payment, and a loan fee of three points?

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