Say that you purchase a house for $200,000 by getting a mortgage for $180,000 and paying a $20,000 down payment. If you get a 30-year mortgage with a 7 percent interest rate, what are the monthly payments? What would the loan balance be in ten years? If the house appreciates at 3 percent per year, what will be the value of the house in ten years? How much of this value is your equity?