Bellringer: Mortgages

Mortgages can last for as little as __ years and as long as __ years.​ (a)   ​ (b)  

• 5 years
• 10 years
• 50 years
• 20 years

True or False: Credit scores do not affect loans, mortgage rates, or interest rates.

• True

• False

True or False: The lower your credit score, the higher the interest rate.

• True

• False

True or False: The higher the credit score, the lower the interest rate.

• True

• False

TREMAINE: 

• Wants a one bedroom apartment in a trendy new development downtown; average cost is $145,000

• Is preapproved for a 6.33% interest rate on a 30-year fixed mortgage

• Has saved $15,000 for a down payment

• His credit score is 740.

What will Tremaine’s monthly payment be?

TREMAINE: 

• Wants a one bedroom apartment in a trendy new development downtown; average cost is $145,000

• Is preapproved for a 6.33% interest rate on a 30-year fixed mortgage

• Has saved $15,000 for a down payment

• His credit score is 740.

How much total interest will he pay over the course of the mortgage? (Hint: Click on the Amortization tab)

TREMAINE: 

• Wants a one bedroom apartment in a trendy new development downtown; average cost is $145,000

• Is preapproved for a 6.33% interest rate on a 30-year fixed mortgage

• Has saved $15,000 for a down payment

• His credit score is 740.

1. If Tremaine waited until he had $30,000 saved for a down payment,

   1. What will his monthly payment be?

TREMAINE: 

• Wants a one bedroom apartment in a trendy new development downtown; average cost is $145,000

• Is preapproved for a 6.33% interest rate on a 30-year fixed mortgage

• Has saved $15,000 for a down payment

• His credit score is 740.

1. If Tremaine waited until he had $30,000 saved for a down payment,

   1. How much total interest will he pay over the course of the mortgage?

TREMAINE: 

• Wants a one bedroom apartment in a trendy new development downtown; average cost is $145,000

• Is preapproved for a 6.33% interest rate on a 30-year fixed mortgage

• Has saved $15,000 for a down payment

• His credit score is 740.

1. If Tremaine waited until he had $30,000 saved for a down payment,

   1. How much money will he save by paying an extra $15,000 upfront?