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Three months ago you found the house of your dreams for sale for $180,000 but you did not have $20,000 for the down payment to
Three months ago you found the house of your dreams for sale for $180,000 but you did not have $20,000 for the down payment to secure a 30-year 5% fixed rate loan. Today you have $20,000 for the down payment but the mortgage rate went up to 6% over the last three months. What price should you offer to pay for the house today if you make a $20,000 down payment and take the 30-year 6% fixed rate loan for the rest of it, so that the amount of your monthly payment on the loan is equal to what it would have been three months ago?
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