Question 1

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.

Accepted Answer

A) True 
 B)False  False

Question 2

Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 6% for 30 years. What is Amanda's monthly payment?

Accepted Answer

A) $1,776 
B) $1,402 
C) $1,240.80 
D) $1,420.80 
E) None of these 
A) $1,776 
B) $1,402 
C) $1,240.80 
D) $1,420.80 
E) None of these D

Question 3

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  True

Question 4

Nancy Karnes bought a home for $143,000 with a down payment of $15,000. Her rate of interest is 9% for 35 years. Calculate her:
A. Monthly payment
B. First payment broken down into interest and principal
C. Balance of mortgage at end of month

Accepted Answer

A. $1,003.52;
B. $96

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Match the following terms with their definitions.
-Points

Accepted Answer

A) Breakdown of principal and interest 
B) One-time up-front payment 
C) Mortgage payments rise in later years 
D) Loan 
E) Not fixed
F)Can prevent foreclosures
G)26 payments per year 
A) Breakdown of principal and interest 
B) One-time up-front payment 
C) Mortgage payments rise in later years 
D) Loan 
E) Not fixed
F)Can prevent foreclosures
G)26 payments per year

Question 7

Dick Hercher bought a home in Homewood, Illinois, for $230,000. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is:

Accepted Answer

A) $184,000.00 
B) $327,372.80 
C) $242,411.00 
D) $242,144.00 
E) None of these 
A) $184,000.00 
B) $327,372.80 
C) $242,411.00 
D) $242,144.00 
E) None of these

Question 8

John Smith is buying a condominium for $190,000. He is putting down $20,000 at the time of closing. John must pay in addition 2 points. Calculate the cost of the points.

Accepted Answer

$190,000 -

Question 9

All mortgages must be paid monthly.

Accepted Answer

A) True 
 B)False

Question 10

With a mortgage of $88,000 at 11% for 25 years, by what amount is the principal reduced the first month?

Accepted Answer

The answer of With a mortgage of $88,000 at 11%...

Question 11

Assume a selling price of $95,000, a down payment of $20,000, and a mortgage at 10% for 30 years. If the loan was for 25 years, what would be the difference in the total interest cost of the loan?

Accepted Answer

25 years: 75 × 9.09

Question 12

Kerry has a $1,973 per month mortgage payment. He decides to refinance his $204,000 balance at 5% over 20 years. What is his new monthly payment?

Accepted Answer

$204,000/1

Question 13

Bill Byad bought an oceanfront condominium for $79,900 with $6,900 down. If the mortgage rate was 15% instead of 14 ½% for 30 years, what would be the difference in the monthly payment?

Accepted Answer

$29.20 mor

Question 14

With a selling price $100,000, a 20% down payment, and a mortgage of 12% for 25 years, calculate:
A. Amount of mortgage
B. Monthly payment
C. Interest portion of first payment
D. Principal portion of first payment

Accepted Answer

A. $80,000

Question 15

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 16

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 17

John Lee bought a home in Des Moines, Iowa, for $135,000. 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?

Accepted Answer

A. $882.43

Question 18

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 19

The difference between the monthly payments on a $120,000 home at 6 1/2% 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 20

Tom Burke buys a home in Virginia for $125,000. He puts down 40% and obtains a mortgage for 30 years at 11%. What are (A)Tom's monthly payment and (B)the total interest of the loan?

Accepted Answer

A. $714.75

Exam 15: The Cost of Home Ownership

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.

Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 6% for 30 years. What is Amanda's monthly payment?

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

Nancy Karnes bought a home for $143,000 with a down payment of $15,000. Her rate of interest is 9% for 35 years. Calculate her: A. Monthly payment B. First payment broken down into interest and principal C. Balance of mortgage at end of month

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

Match the following terms with their definitions. -Points

Dick Hercher bought a home in Homewood, Illinois, for $230,000. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is:

John Smith is buying a condominium for $190,000. He is putting down $20,000 at the time of closing. John must pay in addition 2 points. Calculate the cost of the points.

All mortgages must be paid monthly.

With a mortgage of $88,000 at 11% for 25 years, by what amount is the principal reduced the first month?

Assume a selling price of $95,000, a down payment of $20,000, and a mortgage at 10% for 30 years. If the loan was for 25 years, what would be the difference in the total interest cost of the loan?

Kerry has a $1,973 per month mortgage payment. He decides to refinance his $204,000 balance at 5% over 20 years. What is his new monthly payment?

Bill Byad bought an oceanfront condominium for $79,900 with $6,900 down. If the mortgage rate was 15% instead of 14 ½% for 30 years, what would be the difference in the monthly payment?

With a selling price $100,000, a 20% down payment, and a mortgage of 12% for 25 years, calculate: A. Amount of mortgage B. Monthly payment C. Interest portion of first payment D. Principal portion of first payment

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:

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

John Lee bought a home in Des Moines, Iowa, for $135,000. 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?

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?

The difference between the monthly payments on a $120,000 home at 6 1/2% and at 8% for 25 years is (use the table in the handbook):

Tom Burke buys a home in Virginia for $125,000. He puts down 40% and obtains a mortgage for 30 years at 11%. What are (A)Tom's monthly payment and (B)the total interest of the loan?

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