Answer this:

5. How much will Joan need to save to have a 20% down payment? How much will she need to borrow?

6. How much will Joanneed to save for each of the first ten years to cover the down payment? What variables might impact her ability to save this money?

7. Using thismortgage payment calculator, determine what Joan's annual mortgage payment (with homeowner's insurance and property tax) would be over the 30 year term assuming a 5% interest rate.

8. Using the standard rule of thumb that your mortgage payment shouldn't exceed 30% of your gross salary, does this monthly payment seem reasonable for Joan?