Here’s some information on the house that the Martinez family would like to purchase.
Purchase price of house $180,000
20% down payment is required
Local banks will provide fixed rate mortgages or adjustable rate mortgages ranging from 15-
30 years in length. All of these banks will charge an interest rate (APR) equal to the US
average mortgage interest rate.
All mortgage payments are calculated as level-payment (amortized) loans.
Closing costs will total $6,000 (title search, title insurance, appraisal, etc.)
Homeowners Insurance and Property Taxes will cost a total of $120/month.
Increase in other monthly living expenses due to owning the house $350/month. This is due to
higher utility bills, repairs, etc. associated with owning a house.