# The Andrews family has $40,000 for a down payment on a house And closing costs. They need

## Question:

The Andrews family has $40,000 for a down payment on a house And closing costs. They need a loan to cover the remaining expenses on a house they will purchase for $ 150,000. The closing costs are five percent of the home value. How much will the mortgage or home loan be?

2. If the Riaz family needs a home loan of $120,000 and they want a 15 year lean with an annual interest rate of 5%, how much will their monthly mortgage be?

3. How much would the monthly payment for the Riaz family's home loan be if the loan amount stayed the same ($120,000), but instead they did a 30 year fixed loan with an annual interest rate of 3%?

4. How much will the Riaz family pay for the 15 year loan over the Life loan? How much will the Diaz family pay for the 30 year Loan? What is the difference in cost?

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