A) 2% of the amount of the loan B) Monthly payments C) An additional cost of receiving the mortgage D) 3% up-front payment E) None of these A) 2% of the amount of the loan B) Monthly payments C) An additional cost of receiving the mortgage D) 3% up-front payment E) None of these

Exam 15: The Cost of Home Ownership

Megan Mei is charged 2 points on a $120,000 loan at the time of closing. The original price of the home before the down payment was $140,000. The points in dollars cost Megan:

(Multiple Choice)

4.9/5

(74)

Question 21

Points represent:

(Multiple Choice)

4.8/5

(84)

Question 22

The total cost of interest is equal to the total of all monthly payments:

(Multiple Choice)

4.9/5

(72)

Question 23

All mortgage payments must be paid:

(Multiple Choice)

4.9/5

(92)

Question 24

Marsha Terban bought a home for $119,000 with a down payment of $19,000. Her rate of interest is 12 1/2% for 35 years. The balance of the mortgage at the end of the first month is:

(Multiple Choice)

4.9/5

(83)

Question 25

A point is 1% of the amount of the loan.

(True/False)

4.8/5

(72)

Question 26

A monthly payment of $850 on a 30-year $80,000 mortgage results in a total cost of interest of $226,000.

(True/False)

4.9/5

(82)

Question 27

An amortization schedule shows:

(Multiple Choice)

4.9/5

(79)

Question 28

Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. Using the table in the handbook, his yearly payments are:

(Multiple Choice)

4.8/5

(85)

Question 29

All mortgages must be paid monthly.

(True/False)

4.8/5

(88)

Question 30

Jill Diamond bought a home for $190,000 with a down payment of $65,000. The rate of interest was 7% for 35 years. Her monthly mortgage payment is:

(Multiple Choice)

5.0/5

(72)

Question 31

A variable rate mortgage means:

(Multiple Choice)

4.8/5

(67)

Question 32

Abe Aster bought a new split level for $200,000. Abe put down 30%. Assuming a rate of 11 1/2% on a 30-year mortgage, Abe's monthly payment is (use the table in the handbook):

(Multiple Choice)

4.8/5

(75)

Question 33

A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800.

(True/False)

4.9/5

(75)

Question 34

Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What are Jen's total finance charges?

(Multiple Choice)

4.7/5

(76)

Question 35

The difference between the monthly payments on a $120,000 home at 6 ½% and at 8% for 25 years is (use the table in the handbook):

(Multiple Choice)

4.9/5

(81)

Question 36

Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment. Assuming a rate of 8% on a 25-year mortgage, Craig's monthly payment is (use the table in the handbook):

(Multiple Choice)

4.8/5

(69)

Question 37

From the table in the handbook, the monthly payment on a home purchased for $150,000 with 30% down at 13% for 30 years is $1,132.53.

(True/False)

4.9/5

(92)

Question 38

A $104,000 selling price with $24,000 down at 8 1/2% for 25 years results in a monthly payment of:

(Multiple Choice)

4.8/5

(78)

Question 39

A condo in Orange Beach, Alabama, is listed for $1.4 million with 20% down and financing at 5% for 30 years. What would the monthly payment be?

(Multiple Choice)

4.8/5

(88)

Question 40

Showing 21 - 40 of 49

Exam 15: The Cost of Home Ownership

Megan Mei is charged 2 points on a $120,000 loan at the time of closing. The original price of the home before the down payment was $140,000. The points in dollars cost Megan:

Points represent:

The total cost of interest is equal to the total of all monthly payments:

All mortgage payments must be paid:

Marsha Terban bought a home for $119,000 with a down payment of $19,000. Her rate of interest is 12 1/2% for 35 years. The balance of the mortgage at the end of the first month is:

A point is 1% of the amount of the loan.

A monthly payment of $850 on a 30-year $80,000 mortgage results in a total cost of interest of $226,000.

An amortization schedule shows:

Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. Using the table in the handbook, his yearly payments are:

All mortgages must be paid monthly.

Jill Diamond bought a home for $190,000 with a down payment of $65,000. The rate of interest was 7% for 35 years. Her monthly mortgage payment is:

A variable rate mortgage means:

Abe Aster bought a new split level for $200,000. Abe put down 30%. Assuming a rate of 11 1/2% on a 30-year mortgage, Abe's monthly payment is (use the table in the handbook):

A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800.

Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What are Jen's total finance charges?

The difference between the monthly payments on a $120,000 home at 6 ½% and at 8% for 25 years is (use the table in the handbook):

Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment. Assuming a rate of 8% on a 25-year mortgage, Craig's monthly payment is (use the table in the handbook):

From the table in the handbook, the monthly payment on a home purchased for $150,000 with 30% down at 13% for 30 years is $1,132.53.

A $104,000 selling price with $24,000 down at 8 1/2% for 25 years results in a monthly payment of:

A condo in Orange Beach, Alabama, is listed for $1.4 million with 20% down and financing at 5% for 30 years. What would the monthly payment be?

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