8.1 HW Flashcardizz - Mortgage Loans/Down Payments

Front

What is a down payment?

Back

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

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How do you calculate the down payment amount?

Back

To calculate the down payment amount, multiply the purchase price of the home by the down payment percentage.

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If a house costs $500,000 and the down payment is 20%, what is the down payment?

Back

$100,000

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What is a mortgage?

Back

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

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How do you calculate the mortgage amount?

Back

To calculate the mortgage amount, subtract the down payment from the total purchase price of the home.

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If a house costs $400,000 and the down payment is 15%, what is the mortgage amount?

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$340,000

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What is an installment loan?

Back

An installment loan is a type of loan that is repaid over time with a set number of scheduled payments.

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What is an auto loan?

Back

An auto loan is a type of installment loan specifically used to finance the purchase of a vehicle.

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What is the principal in a mortgage?

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The principal is the original sum of money borrowed in a mortgage, excluding interest.

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What is interest in the context of a mortgage?

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Interest is the cost of borrowing money, typically expressed as a percentage of the principal.