1- Assume you purchase a home for $395,000. You find a bank that offers a 30-year mortgage with an APR of 4.65% but requires 20% down. You decide to finance your home through this bank.

2- Prepare a 30-year amortization schedule showing your monthly payments. Show how much interest you will pay for this home over the 30 years of payments to the bank.

3- Describe what change in your budget you and your spouse might make to find an additional $100 to make additional principle payments on your home.

4- Prepare a second amortization schedule showing the new payment (include the extra $100 found in step #3).

5- Show how much faster you will pay off your mortgage, and how much interest you will have saved by making the $100 additional payment.

You can create your own amortization schedule, or find an excel template online to submit.

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