Mortgage Review

Beth is buying a house and needs to borrow $123,000. Fifth-Third has given her a loan with an APR of 5.5%. She is debating on whether to take out a 15 year loan or a 30 year loan. How much more are they paying in interest with a 30 year loan?

Kathy is purchasing a home that costs $87,600. She has been approved for a 30 year loan at a rate of 4.3%. She has a 10% down payment. How much will she pay in interest when her loan is paid off in 30 years?

Sam is buying a new home that costs $195,000. His monthly mortgage payment will be $959.28. The property taxes on this home are $3,459 semi-annually and his homeowners insurance will be $1,450 per year. What will be his monthly payment including an escrow?

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CCSS.6.NS.B.3

The Franklin’s have an adjusted gross income of $135,975. Their monthly mortgage payment for the house they want would be $1,490. Their annual property tax would be $3,126 and the homeowner’s insurance premium would cost them $1,250 per year. They have a monthly $534 car payment and their credit card monthly payment averages $3,025. Calculate the front end ratio. Round to the nearest percent.

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CCSS.7.RP.A.3

The Franklin’s have an adjusted gross income of $135,975. Their monthly mortgage payment for the house they want would be $1,490. Their annual property tax would be $3,126 and the homeowner’s insurance premium would cost them $1,250 per year. They have a monthly $534 car payment and their credit card monthly payment averages $3,025. Calculate the Back end ratio. Round to the nearest percent.

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CCSS.6.RP.A.3B

How much will be charged in prepaid interest on a $350,000 loan with an APR of 3.5% that was closed on August 16th?

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CCSS.7.RP.A.3

Liz and Nick are buying a $125,000 home. They have been approved for a 5.25% APR, 30 year mortgage. They made a 10% down payment and will be closing on May 11th. How much should they expect to pay in prepaid interest?

Cole was approved for a $145,500 mortgage. What is the least amount he will be expected to pay at closing?

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CCSS.6.RP.A.3D

Lisa was told that based on the price of her home, her approximate closing cost would range from $3,500 to $12,250. How much was the price of her home?

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CCSS.8.EE.A.3

The Sinclair’s have an adjusted gross income of $117,445. They are looking at a new house that would carry a monthly mortgage payment of $1,877. Their annual property taxes would be $6,780, and their semi-annual homeowner’s insurance would be $710. Based on the front - end ratio, would the bank offer them a loan?

• Yes because the ratio is less than 28%

• Yes because the ratio is less than 36%

• No because the ratio is more than 28%

• No because the ratio is more than 36%