Assume you are buying a new $175,000 home in your area. Find the mortgage rate information in the newspaper or on the Internet and compare several loans make sure that you consider one adjustable-rate option. Consider the rate, duration, type, initial and future monthly payments, closing costs, and points (if applicable). Calculate the monthly payment based on financing 80 percent and calculate the total amount paid over the life of the loan including up-front costs. Assume that closing costs equal 2.5 percent of the selling price of the house plus the down payment and discount points.