Currently, a homebuyer needs to pay 20% down payment if they do not want to purchase mortgage loan insurance. Step 1: Assume that we want to purchase a home in 3 years. We'll assume that housing cost will increase at a rate of 7% per year. This 7% is an estimation for the year 2021 by some economists. Calculate how much the home of $920 000 will cost in 3 years. Step 2: How much down payment do we need to prepare in the next 3 years? Step 3: The current interest rate is approximately 1.8% per annum for saving money. How much do we need to save each month for the next 3 years to meet our goal in Step 2? Step 4: Lets assume that we are able to meet the saving goals in Step 3. The current 5-year fixed rate mortgage is about 1.6%. A 5-year variable rate mortgage is about 1.25%. Let's say that we will choose the fixed rate mortgage when we purchase a home 3 years from now. Assume that it is amortized over 25 years. (Amortization period refers to the total time over which the loan is repaid.) a) What is the monthly payment of this mortgage? How much interest will we end up paying? b) If we choose to make weekly payments, how much do we pay weekly? How much interest will we end up paying? Currently, a homebuyer needs to pay 20% down payment if they do not want to purchase mortgage loan insurance. Step 1: Assume that we want to purchase a home in 3 years. We'll assume that housing cost will increase at a rate of 7% per year. This 7% is an estimation for the year 2021 by some economists. Calculate how much the home of $920 000 will cost in 3 years. Step 2: How much down payment do we need to prepare in the next 3 years? Step 3: The current interest rate is approximately 1.8% per annum for saving money. How much do we need to save each month for the next 3 years to meet our goal in Step 2? Step 4: Lets assume that we are able to meet the saving goals in Step 3. The current 5-year fixed rate mortgage is about 1.6%. A 5-year variable rate mortgage is about 1.25%. Let's say that we will choose the fixed rate mortgage when we purchase a home 3 years from now. Assume that it is amortized over 25 years. (Amortization period refers to the total time over which the loan is repaid.) a) What is the monthly payment of this mortgage? How much interest will we end up paying? b) If we choose to make weekly payments, how much do we pay weekly? How much interest will we end up paying