8.3A Mortgage Payments & Escrow Worksheet

8.3A Mortgage Payments & Escrow Worksheet

Assessment

Flashcard

Mathematics

11th - 12th Grade

Hard

Created by

Quizizz Content

FREE Resource

Student preview

quiz-placeholder

15 questions

Show all answers

1.

FLASHCARD QUESTION

Front

What is a mortgage?

Back

A mortgage is a loan specifically used to purchase real estate, where the property serves as collateral for the loan.

2.

FLASHCARD QUESTION

Front

What does APR stand for in mortgage terms?

Back

APR stands for Annual Percentage Rate, which represents the yearly interest rate charged on a loan.

3.

FLASHCARD QUESTION

Front

How do you calculate monthly mortgage payments?

Back

Monthly mortgage payments can be calculated using the formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where M is the total monthly mortgage payment, P is the loan principal, r is the monthly interest rate, and n is the number of payments.

4.

FLASHCARD QUESTION

Front

What is the purpose of escrow in mortgage payments?

Back

Escrow is used to hold funds for property taxes and insurance, ensuring that these payments are made on time.

5.

FLASHCARD QUESTION

Front

How is total interest paid over the life of a mortgage calculated?

Back

Total interest is calculated by subtracting the principal amount borrowed from the total amount paid over the life of the loan.

6.

FLASHCARD QUESTION

Front

What is a down payment?

Back

A down payment is the initial upfront payment made when purchasing a home, typically expressed as a percentage of the purchase price.

7.

FLASHCARD QUESTION

Front

What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?

Back

A fixed-rate mortgage has a constant interest rate throughout the life of the loan, while an adjustable-rate mortgage has an interest rate that may change at specified times.

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?