Now you have decided that it is time to buy a home, this is why you have been trying to build your credit. Research a home that you would love to buy and state the purchase price and a (commonly advertised) interest rate for the mortgage (you may state a rate from a table). Also pick a down payment percent, either 10%, 15%, or 20%. Assume that you have a property tax based on 11.08% of the assessed value of the home which can be found by taking 25% of the market value of the home. Also, assume that your annual home insurance is $2,075.

You will need to open savings account to save for this down payment, find the amount you will need to deposit today into an account at 12% compounded quarterly to build the down payment in 5 years.

Using the price of the home and your down payment as well as the finance rate, find the monthly payment of your 30 year mortgage.

Find your monthly PITI payment for your escrow account.

Find the finance charge for the loan.