2. Estimating Your Mortgage Payments When Buying a Home

Assume that you want to purchase the home that you selected for the quoted sale price. Assume that you make a down payment of 10% of the home, and obtain a mortgage loan for the remaining 90%. Assume you can obtain a thirty-year mortgage at an interest rate of 5%. Use this information to determine your amortization schedule. The following template can be used to derive the monthly mortgage payment based on your input. The template does not account for property taxes or home insurance, so you should keep those expenses in mind as well when considering the purchase of a home. Answer the questions below the amortization schedule.

TEMPLATE USED TO ESTIMATE YOUR MORTGAGE PAYMENTS

Loan Amount $0

Number of Years 0

Annual Interest Rate 0.00%

Monthly Payment $0