Decided to buy house and need to save for down payment

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Reference no: EM131047715

You have decided to buy a house and need to save for the down payment. You have currently $10,000 in an account for that purpose. You estimate you will need to accumulate $80,000 for the down payment at the end of 6 years. How much do you need to put away at the beginning of each of the next 6 years if you expect you can 8% return on your money? If you put down the $80,000 and that represents the equity to be used to purchase the home and you will borrow 80% using a fixed rate 30-year loan (monthly payments) at a rate of 3.75%, what will your monthly payments be?

Reference no: EM131047715

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