Jacqueline is deciding between two mortgages for her new home. the first mortgage is an 80/20 mortgage with interest rates of 4.75 and 7.525%, respectively. the second mortgage is a 30-year mortgage with a 5.25% and a $58.30 monthly pmi. if the house price is $145,000, which mortgage payment will be lower initially, and by how much?

For the answer to the question above,
For the first mortgage
.8 * 145000 = 116000

PMT = 116000(.0475/12) / [1 - (1 + .0475/12)^(-12 * 30)]
PMT = 605.11091034360862021232175319303
Let's round off the PMT
PMT = $605.11
the 2nd Mortgage
.2 * 145000 = 29000

2nd mortgages are usually interest only payments
I = 29000(.07525/12)
I = 181.85416666666666666666666666667
$181.85

605.11 + 181.85 = 786.96

for the second option

PMT = 145000(.0525/12) / [1 - (1 + .0525/12)^(-12 * 30)]
PMT = 800.69536810575262261015659677087
PMT = 800.70

800.7 + 58.3 = 859.00