Scenario #1 You find a house that's smaller than you want, but it's in a good neighboorhood. It's pretty old
and there is a lot of repair work needed. The house is $120,000.00 and you'll put 20% down.
The bank offers a 7% interest rate for a 15 year mortgage and you currently make $2,000.00
per month, with monthly expenses averaging $1,200.00. The repair work will cost $10,000.00.
1. How much is the down payment?
2. What is the actual amount of the loan?
3. How much is the monthly payment?
4. How much do you have left over each month after your expenses are paid (not including the
mortgage monthly payment)?