Scenario B

Home purchase price- $250,000

Mortgage amount-$200,000

Down payment- 20%

Loan term- 30 years

Interest rate- 4.5%

First payment due November, 2021

Annual house appreciation- 3%

Questions

1. What is the monthly payment
2. If no extra payments are made, how much will you owe after 10 years?
3. If no extra payments are made, how much will you owe after 20 years?
4. If you pay an extra $200 each month starting November, 2021, how much money will you save after 15 years?
5. What is the estimated value of the house after 10 years (appreciation)?
6. What is the estimated value of the house after 30 years (appreciation)?