You want to buy your dream house. You currently have $15,000 saved and you need to have a 10% down payment plus an additional 5% of the loan amount for closing costs. Assume the cost of the house is $956,216. You can earn 7.5% per year in a savings account per year. How long will it be before you have enough money for the down payment and closing costs?

Given your current credit, you secure a 15-year fixed rate mortgage at 3.12%. Calculate your monthly mortgage payment; you must pay the home loan on the 1st of each month.

In Excel, create an amortization schedule for your home loan. You must pay the home loan on the 1st of each month.

Now, consider the possibility of being able to make one additional mortgage payment per year for each of the 15 years. How much will you save in interest payments?