Exam 15: The Cost of Home Ownership

With a selling price $95,000, 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

Match the following terms with their definitions. -Mortgage

Banks cannot provide amortization schedules to borrowers.

Bill bought an oceanfront condominium for $79,900, with $6,900 down. Assuming an interest rate of 14 ½% for 30 years, (A)what is the monthly payment and (B)if 1 point is charged at closing, what will that be in dollars?

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:

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.

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:

Alice Roa is concerned about the financing of a home. She saw a home selling for $120,000. If she puts 10% down, find her monthly payment and total cost of interest over the cost of the loan given each assumption: A. 30 years 8% B. 30 years 9% C. 30 years 10% D. 30 years 11%

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:

Match the following terms with their definitions. -Biweekly

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:

Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What amount did Jen owe in interest?

Graduated payments let the borrower pay more at the beginning of the mortgage and make lower payments later.

A variable rate mortgage means:

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:

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):