Taking out a mortgage loan

You're expecting a child soon, and its time to start looking for a home.

You're currently living out of an apartment in New York City, but your blossoming career as a Data Scientist has allowed you to save up a sizable sum and purchase a home in neighboring Hoboken, New Jersey.

You have decided to purchase a beautiful brownstone home in the $800,000 range. While you do have a considerable amount of cash on hand, you don't have enough to purchase the entire home outright, which means you will have to take the remaining balance out as a mortgage loan. From the sound of it, you'll have to put about 20% down up-front to a mortgage loan of that size.

This up-front payment is known as a down payment.

Set home_value equal to 800000.
Set the down_payment_percent equal to 20%.
Calculate the value of down_payment.
Calculate the value of mortgage_loan.

Exercise

Taking out a mortgage loan

Instructions