TASK

 

You and your new spouse currently live in a garden apartment, but you’ve been saving for a house.  

 

You have $125,000 saved.  This comes from wedding gifts and weekly savings.  

 

You are planning to put down a $100,000 down payment on the house.

 

You are assuming that closing costs will cost in the neighborhood of $20,000. 

 

You would like to have about $5,000 left in your savings account after buying a house.

 

In order to buy the house, your tasks will be to:

• Go house hunting.

• Compare mortgage interest rates at different banks.

• Determine how much your monthly mortgage payment will be (adding in principal, interest, property taxes, homeowner's insurance, and PMI).

• Look at your current budget and adjust it to reflect the changes in expenses that a new home would bring.

• Analyze your options and decide if now is the right time for you to purchase a house.