Tech Math Review 4/17

1. What is an advantage of buying a house, compared to renting?

• Lower overall housing costs
• Freedom to decorate or renovate
• More flexibility to move
• Less financial risk

2. What is the largest expense that someone generally pays at the time they buy a house?

• Property taxes
• Down payment
• Closing costs
• Utilities

3. Amelia has a high credit score. How will that help her buy a home?

• She can apply to decrease her debt-to-income ratio
• She can qualify for a mortgage with a lower interest rate
• She can sell her current house for a higher price
• She can get a higher down payment on her mortgage

loan

• Money borrowed, must be repaid with interest

• A legal document that transfers title from one person to another, usually real estate.

• The amount of the house that you have paid for, or the amount you would get if you sold the house.

appraisal

• Fees paid at the sale of a home. May be paid by either the buyer or the seller.

• When a homebuyer fails to pay the mortgage and the home is sold by the bank to get the money back.

• A formal evaluation of property by an expert, used to establish its market value.

home inspection

• When a home is officially for sale

• A close examination of a residence to identify defects or potential issues.

• A bank loan for the purchase of a home.

You can afford a 10% down payment on a house that costs $200,000. You're down payment is $____________

How much will you need to mortgage for a house listed at $450,000 if you make a 15% down payment?

• 67,500

• 3,000

• 450,000

• 382,500

If you have a 20 year loan and your monthly payments are $1,900, how much will you pay in total at the end of the 20 years?

• $38,000

• $456,000

• $302,500

• $388,000

You take out a 25 year mortgage loan for $280,000, but by the end of the 25 years you ended up paying $402,720.24. How much did you pay in interest?

• $122,720.24

• $280,000

• $402,720.24

• $682,720.24