Buying a Home with a Mortgage

Buying a Home

with a Mortgage

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Mortgage

• A loan uses to

purchases a home

• 4 parts to loan

payments: Principal,
Interest, Taxes,
Insurance

Open Ended

62% of Americans have a mortgage.

Do you think you will need a mortgage, or will you buy your first home in cash from saving up money?

Insurance

You must buy homeowners insurance if you have a mortgage. If you live in a risky area, you must have TWIA and Flood!

Multiple Choice

Is it mandatory to buy homeowners insurance if you have a mortgage?

• YES

• NO

Multiple Choice

If you live in Galveston County and have a mortgage, you must buy Texas Windstorm Insurance.

• True

• False

Mortgage Lender

• Also known as a loan officer
• Reviews loan applications,

gathers credit histories and
reports, and assesses
applicants' ability to repay or
not repay the loan

down payment

• average down payment for first-time buyers is

8% to 13%

• improve chances of getting approved and a

lower rate by putting 20% down.

• smaller down payment means a more

expensive mortgage.

Conventional Loan

• 620 + FICO score (credit score)
• 3% down or more
• lots of paperwork

Government Loans

❖ FHA Loan: bad

credit, low on cash

580+ 3.5% down
500+ 10% down

❖ VA Loan: military,

low interest, no
down payment

Multiple Choice

Which loan is for people with a lower (poor) credit score?

• FHA Loan

• Conventional Loan

Multiple Choice

If you enlist in the U.S. military, you can get a low-interest, no down payment home loan.

• True

• False

A.R.M.

• Adjustable Rate

Mortgage

• Interest Rate

changes with market

• For the most part,

DON'T GET AN
ARM!

Multiple Choice

You mortgage payment will stay the same each month with an ARM mortgage.

• True

• False

Mortgage Calculator

• A tool to help you estimate your mortgage

payments each month

deed

• the legal ownership of a property or asset,

from one person or company to another.

Drag and Drop

Aidan – having recently completed his military service – is eager to settle down in his adopted hometown of Fayetteville, NC.  He has neither a large down payment, nor a lot of extra monthly income.  What type of mortgage loan is best? ​ ​ ​

Placeholder

​

Drag these tiles and drop them in the correct blank above

VA Mortgage

Jumbo Mortgage

USDA Mortgage

FHA Mortgage

Conventional Mortgage

Multiple Choice

The loan a person gets to purchase a house or a condominium is called a __________.

• principal loan

• interest term loan

• P&I loan

• mortgage

Multiple Choice

you typically are expected to pay how much down on an investment property loan?

• 5%

• 10%

• 20%

• 35%

Multiple Choice

This is the most common type of loan and usually has a fixed rate

• conventional

• FHA loan

• VA loan

• investment