It is 2025, and you have established yourself as a young up-and-comer in your field. As such you and your significant other have decided to put down roots and buy a house together.

In preparing to buy your home you have decided that the maximum monthly payment you would be willing/able to make is $2,000. You have about $80,000 to put towards a down payment.

Assume that you could get an interest rate of 4.75% on a 15 year mortgage or 5.25% on a 30 year mortgage. In order to get these rates you must make a 20% down payment on the value of the home, financing the remainder.

Use the amortization table you have created to determine what your option is in regards to financing your home.

6. What is the price of the home you can afford, given the above parameters?

7. How much interest would you pay over the life of the loan, given the above parameters?

8. If you made an additional payment of $200 each month, how early would you pay off either loan?

9. If you made an additional payment of $250 each month, how much less interest would you pay with either loan?