Buying a Home (Math) Review

Front

What is a down payment?

Back

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

Front

How do you calculate the mortgage amount after a down payment?

Back

Mortgage Amount = Purchase Price - Down Payment.

Front

If a house costs $300,000 and the down payment is 15%, how much is the down payment?

Back

Down Payment = 15% of $300,000 = $45,000.

Front

What is the formula to calculate quarterly real estate tax payments?

Back

Quarterly Payment = Annual Real Estate Tax / 4.

Front

If Hannah pays $480 a year in real estate tax, how much does she pay each quarter?

Back

Quarterly Payment = $480 / 4 = $120.

Front

What is the formula to calculate monthly real estate tax payments?

Back

Monthly Payment = Annual Real Estate Tax / 12.

Front

If Chad pays $546 a year in real estate tax, how much does he pay each month?

Back

Monthly Payment = $546 / 12 = $45.50.

Front

What are closing costs in a home purchase?

Back

Closing costs are fees associated with finalizing a real estate transaction, typically including loan origination fees, title insurance, and appraisal fees.

Front

If Alia's closing costs are 5% of a $150,000 house, how much are her closing costs?

Back

Closing Costs = 5% of $150,000 = $7,500.

Front

What is the total monthly payment if you combine mortgage and real estate tax payments?

Back

Total Monthly Payment = Monthly Mortgage Payment + Monthly Real Estate Tax Payment.