(using bankrate.com, mortgage amorization table)

part 1. You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. you will make a down payment of 20 percent of the purchase price.

A. Calculate your monthly payments on this mortgage.

B. calculate the amount of interest and, separately, principal paid in the 25th payment.

part 2. What will be your monthly payment on a $500,000 15 and 30 year mortgage if the rate is 2.85 percent for the people with good credit and 8.95 percent for people with bad credit.(4 calculations) you will have to adjust bankrate.com default of 20 percent down to 0 percent because the mortgage is $500,000. also, how much interest will you pay over the life of the 4 loans just calculated? why would someone finance a house with a 10 year interest only loan? give 3 reasons.