Life Situation: Young married couple, Shelby age 26, Mark age 27

Financial Data:

Monthly Gross Income: $3,600

Living Expenses: $3,100

Assets: $25,000

Liabilities: $3,000

Shely and Mark Lawrence were married a year ago and are planning to purchase a condo as their first home together. Rent for a two-bedroom apartment costs them around $800. They want to stay as close to this amount as possible, since they are preparing to open Shelby's pet salon within the next year. They need help in evaluating all of the elements of home ownership.

1. Assume the Lawrences will qualify for a 6%, 30-year loan and will make a down payment of 10%. They are currently paying $300 on a used car auto loan for Shelby and will pay $220 per month for property taxes and home owner