Owning or Renting a Home 6-1,6-2,6-3

The Principal of a mortgage loan is the .......

• down payment minus the purchase price.

• purchase price minus the down payment.

• purchase price plus the down payment.

What is most important factor that determines the value of a home?

• Size

• Look

• Age

• Location

A down payment is a percentage of the total cost of a house paid at the time of purchase.

• True

• False

Who is responsible for establishing property tax rates?

• Local tax departments

• State tax departments

• Federal tax departments

Anna wants to buy a home priced at $67,000. She will need to make a down payment of 15% and estimates closing costs of 2.8% of the purchase price. What amount will Anna need for the down payment ?

• $1,876

• $10,050

• $11,321

• $2,245

Anna wants to buy a home priced at $67,000. She will need to make a down payment of 15% and estimates closing costs of 2.8% of the purchase price. What amount will Anna need for the closing cost?

• $1,876

• $10,050

• $11,321

• $2,245

Jason buys a condominium for $96,200. He makes a 5% down payment, and pays these closing costs: property survey, $315; insect inspection, $190; legal fees, $525; and title insurance,$225. What is the total cash amount(down payment +closing cost) needed to buy the condominium?

• $6,876

• $9,050

• $6,065

• $5,245

The Caverleys bought a home for $162,500. They made a 15% down payment and borrowed the rest on a 7.4%, 30-year fixed rate mortgage. How much was the principal amount of their home mortgage?

• $116,886

• $138,125

• $140,065

• $162,500

• 1.3%

• 1.8%

• 2.1%

• 3.2%

Alger and Stacy Walsh plan to buy the house they now rent. They expect to pay $14,400 in annual interest and $3,600 a year in property taxes. Other first-year expenses are: depreciation, $2,660; insurance, $780; maintenance and repairs, $2,800; lost interest income, $585; and utilities, $2,460. Estimated yearly tax savings are $5,040. What is the net cost of home ownership for the first year?

• $23,500

• $19,400

• $24,334

• $22,245