Buying a Home Unit Test

When someone purchases a house using a loan, their payment is called a ___________________.

• Requirement

• Ratio

• Mortgage

• Score

The amount of money you agree to pay at the time of the purchase is called a ________

• upfront fee
• initial cost
• front-end payment
• down payment

The selling price of a home is $258,400 with a 25% down payment. What is the cost of the down payment?

• $64,600
• $75,000
• $50,000
• $32,300

Calculate the mortgage loan amount:

The selling price of a home is $292,300 with a 35% down payment.

• $250,000
• $189,995
• $200,000
• $300,000

When a person takes out a loan, they are responsible for paying back what they borrowed as well as ________________ (a percentage of the loan amount paid to the lender in return for allowing them to borrow the money)

• Taxes

• Interest

• Principal

• Title

What is a monthly payment?

• A payment made only when requested
• A variable amount paid weekly
• A fixed amount paid each month towards a loan or a service.
• A one-time payment made annually

A person would like to purchase a home. The type of loan chosen requires that they pay 3.5% of the home price before they begin making monthly payments. They will be paying a(n)

• down payment

• interest

• car payment

• credit score

Find the monthly payment for $1,000 loan at an annual interest rate of 10% for 20 years.

• $12.65

• $8.78

• $10.32

• $9.65

Sandy and Tim Robinson have applied for a $325,000 loan at an annual interest rate of 9%. The loan is for a period of 15 years and will be paid in equal monthly that include interest. Find the monthly payment.

• $3,135.74

• $2,986.58
• $2,523.65

• $3,450.00

Jessica Kyle has applied for a $312,400 loan at an annual interest rate of 7%. The loan is for a period of 20 years and will be paid in equal monthly that include interest. The monthly payment is $2,421.10. What is total amount of interest charged?

• $189,543
• $301,200
• $175,000
• $268,664