F.A. U6L3 MORTGAGE APPLICATION PROCESS

The Jacobs family is planning to buy a home. They have some money for a down payment

already. They see a home they like and compute that they would need to borrow $213,000

from a bank over a 30-year period. The APR is 6.75%.

a. What is the monthly payment, to the nearest cent?

• $1,391.51

• $1,813.65

• $1,381.51

• $1,318.56

The Jacobs family is planning to buy a home. They have some money for a down payment

already. They see a home they like and compute that they would need to borrow $213,000

from a bank over a 30-year period. The APR is 6.75%.

b. What is the total of all of the monthly payments over the 30 years?

• $447,343.60

• $497,343.60

• $794,343.60

• $397,343.60

The Jacobs family is planning to buy a home. They have some money for a down payment

already. They see a home they like and compute that they would need to borrow $213,000

from a bank over a 30-year period. The APR is 6.75%.

c. What is her total interest for the 30 years?

• $243,343.60

• $228,343.60

• $248,343,60

• $284,343,60

If you borrow $200,000 at an APR of 8% for 25 years, you will pay more per month than if you

borrow the money for 30 years at 8%.

a. What is the monthly payment on the 25-year mortgage, to the nearest cent?

• $1,543.63

• $1,400.63

• $1,253.63

• $1,643.63

If you borrow $200,000 at an APR of 8% for 25 years, you will pay more per month than if you

borrow the money for 30 years at 8%.

b. What is the total interest paid on the 25-year mortgage?

• $223,086

• $243,090

• $263,089

• $285,050