Question 1

From the table in the handbook, the monthly payment on a home purchased for $120,000 with 20% down at 8% for 25 years is $741.12.

Accepted Answer

A) True 
 B)False

Question 2

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:

Accepted Answer

A)  $3.33 
B)  $98,944 
C)  $99,669.76 
D)  $99,985.67 
E)  None of these 
A)  $3.33 
B)  $98,944 
C)  $99,669.76 
D)  $99,985.67 
E)  None of these

Question 3

Tom Burke buys a home in Virginia for $125,000. He puts down 40% and obtains a mortgage for 30 years at 11%. If Tom could have obtained a 1% reduction from 11% to 10% in the mortgage rate, by how much would his monthly payment be reduced?

Accepted Answer

The answer of Tom Burke buys a home in Virginia...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Interest is equal to principal times rate divided by time.

Accepted Answer

A) True 
 B)False

Question 6

Points are to be paid off as part of the regular monthly payment.

Accepted Answer

A) True 
 B)False

Question 7

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate the total cost of interest for Marvin Bass.

Accepted Answer

The answer of Marvin Bass bought a home for $180,000,...

Question 8

Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using the table in the handbook, his monthly payment is:

Accepted Answer

A)  $1,319.04 
B)  $1,319.40 
C)  $1,216.80 
D)  $1,139.40 
E)  None of these 
A)  $1,319.04 
B)  $1,319.40 
C)  $1,216.80 
D)  $1,139.40 
E)  None of these

Question 9

A variable rate mortgage is always fixed.

Accepted Answer

A) True 
 B)False

Question 10

All mortgage payments must be paid:

Accepted Answer

A)  Weekly 
B)  Monthly 
C)  Biweekly 
D)  Semiannually 
E)  None of these 
A)  Weekly 
B)  Monthly 
C)  Biweekly 
D)  Semiannually 
E)  None of these

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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):

Accepted Answer

A)  $81.12 
B)  $151.02 
C)  $115.20 
D)  $91.12 
E)  None of these 
A)  $81.12 
B)  $151.02 
C)  $115.20 
D)  $91.12 
E)  None of these

Question 13

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):

Accepted Answer

A)  $1,431.30 
B)  $1,413.30 
C)  $1,505.40 
D)  $1,505.04 
E)  None of these 
A)  $1,431.30 
B)  $1,413.30 
C)  $1,505.40 
D)  $1,505.04 
E)  None of these

Question 14

Calculate the balance outstanding after the first payment. Given: selling price of $150,000, one-third down, and an 11% mortgage for 25 years.

Accepted Answer

The answer of Calculate the balance outstanding after the first...

Question 15

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate (A) Marvin's payment per $1,000 and (B) his monthly mortgage payment.
A. $12.04
B. $1,565.20

Accepted Answer

The answer of Marvin Bass bought a home for $180,000,...

Question 16

With a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

Accepted Answer

A)  $50,236.80 
B)  $5,023.68 
C)  545.76 
D)  $54,576 
E)  None of these 
A)  $50,236.80 
B)  $5,023.68 
C)  545.76 
D)  $54,576 
E)  None of these

Question 17

The total of all monthly payments plus the amount of the mortgage equals the total cost of interest.

Accepted Answer

A) True 
 B)False

Question 18

Graduated payments result in the borrower paying:

Accepted Answer

A)  More at the beginning of the mortgage 
B)  Less at the beginning of the mortgage 
C)  Less at the end of the mortgage 
D)  The mortgage at 1/2 the standard rate 
E)  None of these 
A)  More at the beginning of the mortgage 
B)  Less at the beginning of the mortgage 
C)  Less at the end of the mortgage 
D)  The mortgage at 1/2 the standard rate 
E)  None of these

Question 19

Subprime loans are very safe.

Accepted Answer

A) True 
 B)False

Question 20

A variable rate mortgage means:

Accepted Answer

A)  The interest rate is not fixed 
B)  The interest rate is fixed for five years 
C)  The rate is not subject to change 
D)  Larger monthly payments than a fixed rate 
E)  None of these 
A)  The interest rate is not fixed 
B)  The interest rate is fixed for five years 
C)  The rate is not subject to change 
D)  Larger monthly payments than a fixed rate 
E)  None of these

From the table in the handbook, the monthly payment on a home purchased for $120,000 with 20% down at 8% for 25 years is $741.12.

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:

Tom Burke buys a home in Virginia for $125,000. He puts down 40% and obtains a mortgage for 30 years at 11%. If Tom could have obtained a 1% reduction from 11% to 10% in the mortgage rate, by how much would his monthly payment be reduced?

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

Interest is equal to principal times rate divided by time.

Points are to be paid off as part of the regular monthly payment.

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate the total cost of interest for Marvin Bass.

Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using the table in the handbook, his monthly payment is:

A variable rate mortgage is always fixed.

All mortgage payments must be paid:

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

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):

Calculate the balance outstanding after the first payment. Given: selling price of $150,000, one-third down, and an 11% mortgage for 25 years.

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate (A) Marvin's payment per $1,000 and (B) his monthly mortgage payment. A. $12.04 B. $1,565.20

With a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

The total of all monthly payments plus the amount of the mortgage equals the total cost of interest.

Graduated payments result in the borrower paying:

Subprime loans are very safe.

A variable rate mortgage means:

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters

Exam 15: The Cost of Home Ownership

From the table in the handbook, the monthly payment on a home purchased for $120,000 with 20% down at 8% for 25 years is $741.12.

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:

Tom Burke buys a home in Virginia for $125,000. He puts down 40% and obtains a mortgage for 30 years at 11%. If Tom could have obtained a 1% reduction from 11% to 10% in the mortgage rate, by how much would his monthly payment be reduced?

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

Interest is equal to principal times rate divided by time.

Points are to be paid off as part of the regular monthly payment.

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate the total cost of interest for Marvin Bass.

Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using the table in the handbook, his monthly payment is:

A variable rate mortgage is always fixed.

All mortgage payments must be paid:

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

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):

Calculate the balance outstanding after the first payment. Given: selling price of $150,000, one-third down, and an 11% mortgage for 25 years.

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate (A) Marvin's payment per $1,000 and (B) his monthly mortgage payment. A. $12.04 B. $1,565.20

With a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

The total of all monthly payments plus the amount of the mortgage equals the total cost of interest.

Graduated payments result in the borrower paying:

Subprime loans are very safe.

A variable rate mortgage means:

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters