Exam 15: The Cost of Home Ownership

Match the following terms with their definitions. -Graduated payments

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.

Using the table in the handbook, the total cost of interest on a home purchased for $200,000 with 30% down at 7% for 35 years is $235,732.

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If a home sells for $150,000 with one-third down at a rate of 11% for 25 years, calculate (A)amount of mortgage and (B)the monthly payment.

Joy Linman bought a home in Boca Raton, Florida, for $350,000 with a down payment of $50,000. Her rate of interest is 9 ½% for 25 years. Calculate the total cost of interest for Joy Linman.

Jackie Revez purchased a new home in Riverside Park. The purchase price was $210,000, and she put down 30%. Her mortgage is 10 ½% for 30 years. What is the outstanding balance of her loan after the first month?

Match the following terms with their definitions. -Amortization schedule

Assume a selling price of $88,000, a down payment of $24,000, and a mortgage at 13% for 30 years. If the loan was for 25 years, what would be the difference in the total interest cost of the loan?

An amortization schedule shows:

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.

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Joy Linman bought a home in Boca Raton, Florida, for $350,000 with a down payment of $50,000. Her rate of interest is 9 ½% for 25 years. Calculate Joy's monthly mortgage payment.

With a selling price of $125,000, a down payment of $20,000, and a mortgage rate of 10% for 30 years, calculate: A. Principal B. Payments per $1,000 C. Monthly mortgage payment D. The total cost of interest

With a selling price of $88,000, a down payment of $24,000, and a mortgage at 13% for 30 years, calculate the total cost of interest.

Shelley purchased a home in Maryland Heights, MO, for $204,000. Her down payment was 20% of the cash price, and she obtained a mortgage for 20 years at 7%. What are Shelley's (A)monthly payment and (B)total finance charges?

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?

Match the following terms with their definitions. -Short sale

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

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