5.. Jamie Lee and Ross received a signed contract from the seller accepting their $273,000 offer! The seller also agreed to pay two points toward Jamie Lee and Ross’s mortgage. Calculate the benefit of having points paid toward the mortgage if Jamie Lee and Ross are putting a $40,000 down payment on the home.Five years have passed and Jamie Lee, now 34, is considering taking the plunge: Not only is she engaged to be married, but she is also deciding whether to purchase a new home.

Jamie Lee’s cupcake café is a success! It has been open over a year now and has earned rave reviews in the local press and from its regular customers, who just cannot get enough of her delicious cupcakes.

One such customer, who stopped by on a whim in the café’s first week of business, is Ross. After a whirlwind courtship, Ross, a self-employed web page designer, proposed and Jamie Lee agreed to be his wife.

The bungalow that Jamie Lee has been renting for the past five years is too small for the soon-to-be newlyweds, so Jamie Lee and Ross are trying to decide if they should move to another rental or purchase a home of their own. They agreed to visit their local banker to get an idea of how much home they can afford with their combined incomes.

Current Financial Situation

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Assets (Jamie Lee and Ross combined): Checking account, $4,300 Liabilities (Jamie Lee and Ross combined): Student loan balance, $0