1. What major factors are affecting the Mortimers spending habits?

2. Based on a monthly income of $3,600, an estimated $240 per month for property taxes and homeowners insurance, current mortgage interest rates of 9 percent, and a down payment of at least 10 percent, what would it cost the Mortimers to purchase a home?

3. What tax advantages will the Mortimers realize by purchasing a home rather than renting?

4. What transportation alternatives should the Mortimers consider? If they decide that they need a second motor vehicle, how should they finance it?