CASE STUDY - Mortgage Loan Analysis



Mortgage Loan Analysis: A resident in Sugar Land is planning to buy a new house in March 2014. The sale price of the house is $436,000. He plans to pay 20% down payments and borrow additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from April 2013 for a total of 30 years. (1) Calculate the required monthly mortgage payment for Mr. Davidson. (2) Construct the 2014~2018 amortization table for Mr. Davidson. (1) Mr. Davidson should prepare his 2014 tax filings in early 2015. Please compute the total mortgage interest payments which he can use for his 2014 tax deductions. 

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