You found one house listing on Redfin.com with an asking price of $789,000 You have enough savings to pay a 20% down payment right away and a local bank agreed to lend you the remaining at a 6.0% fixed APR for 30 years, with monthly payment to begin in one month.

a) How much is your monthly payment?

b1). Now fast forward 10 years. That is, suppose 10 years have passed since the loan started. You have made the past 120 payments exactly on time. What is the remaining balance on your loan?

b2). (continued from b1) Assume the start-up company you work for goes public at this time (10 years into the loan) and you can out $150,000 with your employee stocks. If you plan to use the money to pay down the loan balance, what is the new balance after this $150,000 payment?

b3.2) (continue from b2) if after the loan balance reduction, you plan to make the same monthly payment as you calculated in a), how many months are left before you are debt-free?