Say that you purchase a house for $252,000 by getting a mortgage $220,000 and paying a down payment of $32,000. If you get a 20-year mortgage with an interest rate of 8 percent, what are the monthly payments?

Payments?

What would the loan balance be in five years?

If the house apprentices at 2 percent per year, what will be the value of the house in five years? Future value?

How much of this value is your equity?