Mortgage Calculating

Jose is purchasing a new house. Home Price: $220,000. He is able to pay a Down Payment: $8,000, His Loan Term is 20 years and his APR is 6%. What is Joes's monthly mortgage payment?

(a)  

To calculate how much his loan amount will be, Jose will need to subtract the ___ _____ from the price of the home.

(a)  

If Jose's new home costs $220,000 and he paid a $8,000 down payment... How much is Jose's loan amount?

(a)  

How much will Jose have paid through his mortgage at the end of the 20 year loan term?

(a)  

If Jose's new house is worth $220,000 right now, how much would it need to APPRECIATE over the 20 year loan term to match the amount that he will pay for the home.

• $212,000

• $152,520.12

• $144,520.12

• $8,000

Answer explanation

At the end of his 20 year loan term, Hiram will have paid $364,520.12. If the house does not appreciate (go up in value) over that 20 years, this home with this mortgage agreement would be a bad investment for Hiram because he would be paying over $144,500 more than what the home is worth.

Nathaniel is purchasing a $220,000 home. He paid a $40,000 down payment and her loan term is 30 years at a 6% interest rate. How much is his mortgage interest?

(a)  

Kenadi is purchasing the house next to Carlos for the same price ($220,000 home). She also paid a $40,000 down payment but her loan term is 10 years at a 6% interest rate. How much is her mortgage interest?

(a)  

Who is paying MORE mortgage interest?

• Nathaniel

• Kenadi

Answer explanation

It is typical to pay more mortgage interest if you have a LONGER loan term. Daana's was 30 years, while Hector's was only 10 years.

Who's monthly payment is HIGHER?

• Nathaniel

• Kenadi

Daniela's Home Price: $365,000, Down Payment: $14,600, Loan Term: 15 years, APR: 3.8% Based on this information what is her monthly mortgage payment?

(a)