7.3 - 7.5 Quiz Review

If you borrow $225,000 at an APR of 6% for 25 years, you will pay $1449.68 per month. If you borrow the same amount at the same APR for 30 years, you will pay $1,348.99 per month.

What is the total amount of INTEREST paid on the 25-year mortgage?

• $17,396.16

• $209,904

• $260,636.40

• $434,904

If you borrow $225,000 at an APR of 6% for 25 years, you will pay $1449.68 per month. If you borrow the same amount at the same APR for 30 years, you will pay $1,348.99 per month.

What is the total amount of INTEREST paid on the 30-year mortgage?

• $209,904

• $225,000

• $260,636.40

• $485,636.40

If I paid $260,636.40 in interest over the 30 year loan and $209,904 in interest over the 25 year loan, how much more interest did I pay with the 30 year loan?

• $50,732.40

• $209,904

• $260,636.40

• $470,540.40

If you borrow $225,000 at an APR of 6% for 25 years, you will pay $1449.68 per month. If you borrow the same amount at the same APR for 30 years, you will pay $1,348.99 per month.

What is the DIFFERENCE between the monthly payments of the two loans?

• $100.69 per month

• $500 per month

• $2,798.67 per month

• $13,500 per month

Leah is purchasing a home for $200,000. She has been approved for a 6.5% mortgage. She put 15% down and will be closing on July 16th (there are 31 days in July).

Determine Leah's down payment & loan amount.

• Down Payment: $20,000

  Loan Amount: $200,000

• Down Payment: $20,000

  Loan Amount: $180,000

• Down Payment: $30,000

  Loan Amount: $200,000

• Down Payment: $30,000

  Loan Amount: $170,000

Leah is purchasing a home for $200,000. She has been approved for a 6.5% mortgage. She put 15% down and will be closing on July 16th (there are 31 days in July).

Determine Leah's annual interest ( I = Pr ). Be sure to use her loan amount.

• $11,050

• $13,000

• $25,500

• $30,000

Leah is purchasing a home for $200,000. She has been approved for a 6.5% mortgage. She put 15% down and will be closing on July 16th (there are 31 days in July).

Since Leah is paying $11,050 in annual interest, determine the prepaid interest Leah would need to pay at closing. Hint: Find how much interest she pays per day first.

• $30.27

• $423.84

• $454.11

• $718.25

Determine the new interest rate & the cost of the points for each loan.

$330,000, original APR 5.75%, 2 points with a 0.2% discount.

• New Rate: 5.35%

  Cost: $66,000

• New Rate: 5.35%

  Cost: $6,600

• New Rate: 5.55%

  Cost: $6,600

• New Rate: 5.55%

  Cost: $66,000

Determine the cost of the points and the new interest rate for each loan:

$135,000, original APR 7.2%, 3 points with a 0.25% discount

• New Rate: 6.95%

  Cost: $4,050

• New Rate: 6.95%

  Cost: $9,720

• New Rate: 6.45%

  Cost: $9,720

• New Rate: 6.45%

  Cost: $4,050

Frank wants to take out a 30-year, $150,000 loan with a 6% APR. He is considering buying 2 points which will decrease his APR by 0.125% per point. Each point costs him 1% of his loan.

Determine his monthly payment for the ORIGINAL rate.

• $805.23 per month

• $875.40 per month

• $899.33 per month

• $1600.89 per month