Question 1

Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate at 7.5% for 25 years. Her yearly payments are:

Accepted Answer

A)  $1,776 
B)  $9,932.16 
C)  $12,415.20 
D)  $9,329.61 
E)  None of these 
A)  $1,776 
B)  $9,932.16 
C)  $12,415.20 
D)  $9,329.61 
E)  None of these

Question 2

A biweekly mortgage results in six extra payments per year.

Accepted Answer

A) True 
 B)False

Question 3

With a selling price $95,000, a down payment of $20,000, and a mortgage at 10% for 30 years, calculate the total cost of interest.

Accepted Answer

The answer of With a selling price $95,000, a down...

Question 4

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

Accepted Answer

A)  Divided by amount of mortgage 
B)  Minus amount of mortgage 
C)  Plus amount of mortgage 
D)  Times amount of mortgage 
E)  None of these 
A)  Divided by amount of mortgage 
B)  Minus amount of mortgage 
C)  Plus amount of mortgage 
D)  Times amount of mortgage 
E)  None of these

Question 5

Beverly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years. Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%?

Accepted Answer

A)  $208.97 
B)  $436.40 
C)  $143.00 
D)  $227.43 
E)  None of these 
A)  $208.97 
B)  $436.40 
C)  $143.00 
D)  $227.43 
E)  None of these

Question 6

Bill Byad bought an oceanfront condominium for $79,900 with $6,900 down. If the mortgage rate was 15% instead of 14 1/2% for 30 years, what would be the difference in the monthly payment?

Accepted Answer

The answer of Bill Byad bought an oceanfront condominium for...

Question 7

Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of:

Accepted Answer

A)  $207,270.95 
B)  $207,720.59 
C)  $207,720.95 
D)  $207,270.59 
E)  None of these 
A)  $207,270.95 
B)  $207,720.59 
C)  $207,720.95 
D)  $207,270.59 
E)  None of these

Question 8

Banks cannot provide amortization schedules to borrowers.

Accepted Answer

A) True 
 B)False

Question 9

Use the table provided in the handbook. With a mortgage of $80,000 at 13% for 25 years, by what amount is the principal reduced the first month?

Accepted Answer

The answer of Use the table provided in the handbook....

Question 10

John Lee bought a home in Des Moines, Iowa, for $65,000. He put down 15% and obtained a mortgage for 30 years at 8 1/2%. What is (A) John's monthly payment and (B) the total interest cost of the loan?
A. $424.87;
B. $97,703.20

Accepted Answer

The answer of John Lee bought a home in Des...

Question 11

The major portion of the monthly payment is used to pay off the principal.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  $644.80 
B)  $645.60 
C)  $546.06 
D)  $654.60 
E)  None of these 
A)  $644.80 
B)  $645.60 
C)  $546.06 
D)  $654.60 
E)  None of these

Question 13

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?

Accepted Answer

A)  $7,518 
B)  $6,014.40 
C)  $6,041.20 
D)  $7,815.00 
E)  None of these 
A)  $7,518 
B)  $6,014.40 
C)  $6,041.20 
D)  $7,815.00 
E)  None of these

Question 14

Bill Moore took out an $80,000 mortgage on a ski chalet. The bank charged 4 points at closing. The points in dollars cost Bill:

Accepted Answer

A)  $800 
B)  $3,200 
C)  $2,400 
D)  $1,600 
E)  None of these 
A)  $800 
B)  $3,200 
C)  $2,400 
D)  $1,600 
E)  None of these

Question 15

The amount of the down payment one makes on a home directly affects the size of the monthly payment.

Accepted Answer

A) True 
 B)False

Question 16

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?

Accepted Answer

A)  $457,425.60 
B)  $606,823.20 
C)  $626,863.20 
D)  $600,000.00 
E)  None of these 
A)  $457,425.60 
B)  $606,823.20 
C)  $626,863.20 
D)  $600,000.00 
E)  None of these

Question 17

Lizzy Clar bought a home for $160,000, putting down $30,000. The rate of interest is 7% for 25 years. The total yearly mortgage payment is:

Accepted Answer

A)  $11,029.20 
B)  $11,920.20 
C)  $919.10 
D)  $18,782.40 
E)  None of these 
A)  $11,029.20 
B)  $11,920.20 
C)  $919.10 
D)  $18,782.40 
E)  None of these

Question 18

Tom Burke buys a home in Virginia for $139,000. He puts down 30% and obtains a mortgage for 25 years at 12%. The portion of the first payment that covers interest is:

Accepted Answer

A)  $52.54 
B)  $1,025.54 
C)  $973.00 
D)  $97.30 
E)  None of these 
A)  $52.54 
B)  $1,025.54 
C)  $973.00 
D)  $97.30 
E)  None of these

Question 19

A larger down payment is needed for a 15-year fixed rate mortgage than for a 30-year fixed rate mortgage.

Accepted Answer

A) True 
 B)False

Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate at 7.5% for 25 years. Her yearly payments are:

A biweekly mortgage results in six extra payments per year.

With a selling price $95,000, a down payment of $20,000, and a mortgage at 10% for 30 years, calculate the total cost of interest.

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

Beverly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years. Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%?

Bill Byad bought an oceanfront condominium for $79,900 with $6,900 down. If the mortgage rate was 15% instead of 14 1/2% for 30 years, what would be the difference in the monthly payment?

Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of:

Banks cannot provide amortization schedules to borrowers.

Use the table provided in the handbook. With a mortgage of $80,000 at 13% for 25 years, by what amount is the principal reduced the first month?

John Lee bought a home in Des Moines, Iowa, for $65,000. He put down 15% and obtained a mortgage for 30 years at 8 1/2%. What is (A) John's monthly payment and (B) the total interest cost of the loan? A. $424.87; B. $97,703.20

The major portion of the monthly payment is used to pay off the principal.

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?

Bill Moore took out an $80,000 mortgage on a ski chalet. The bank charged 4 points at closing. The points in dollars cost Bill:

The amount of the down payment one makes on a home directly affects the size of the monthly payment.

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?

Lizzy Clar bought a home for $160,000, putting down $30,000. The rate of interest is 7% for 25 years. The total yearly mortgage payment is:

Tom Burke buys a home in Virginia for $139,000. He puts down 30% and obtains a mortgage for 25 years at 12%. The portion of the first payment that covers interest is:

A larger down payment is needed for a 15-year fixed rate mortgage than for a 30-year fixed rate mortgage.

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

Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate at 7.5% for 25 years. Her yearly payments are:

A biweekly mortgage results in six extra payments per year.

With a selling price $95,000, a down payment of $20,000, and a mortgage at 10% for 30 years, calculate the total cost of interest.

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

Beverly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years. Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%?

Bill Byad bought an oceanfront condominium for $79,900 with $6,900 down. If the mortgage rate was 15% instead of 14 1/2% for 30 years, what would be the difference in the monthly payment?

Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of:

Banks cannot provide amortization schedules to borrowers.

Use the table provided in the handbook. With a mortgage of $80,000 at 13% for 25 years, by what amount is the principal reduced the first month?

John Lee bought a home in Des Moines, Iowa, for $65,000. He put down 15% and obtained a mortgage for 30 years at 8 1/2%. What is (A) John's monthly payment and (B) the total interest cost of the loan? A. $424.87; B. $97,703.20

The major portion of the monthly payment is used to pay off the principal.

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?

Bill Moore took out an $80,000 mortgage on a ski chalet. The bank charged 4 points at closing. The points in dollars cost Bill:

The amount of the down payment one makes on a home directly affects the size of the monthly payment.

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?

Lizzy Clar bought a home for $160,000, putting down $30,000. The rate of interest is 7% for 25 years. The total yearly mortgage payment is:

Tom Burke buys a home in Virginia for $139,000. He puts down 30% and obtains a mortgage for 25 years at 12%. The portion of the first payment that covers interest is:

A larger down payment is needed for a 15-year fixed rate mortgage than for a 30-year fixed rate mortgage.

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