Personal Financial Literacy: Housing Unit Mortgage Test

A ​ (a)   is a loan that is specifically for purchasing a house.

• mortgage
• credit card
• personal loan
• auto loan

The mortgage will not only include the cost of the house, but also ​ (a)   such as attorney fees, taxes, administration fees, appraisals, points, and other costs that are added at closing.

• closing costs
• monthly payments
• property insurance
• homeowner association fees

If the down payment is less than 20%, the home buyer will have to pay ​ (a)   with each monthly payment. This insurance protects the lender by guaranteeing that, in the event of a default, the insurer will pay the mortgage.

• Private Mortgage Insurance
• Homeowners Association Fees
• Property Taxes
• Flood Insurance
• Homeowners Insurance

Use the chart to assist you in solving this question:

The Hall’s can afford a maximum monthly payment of $1000. They will finance the house over 30 years at an interest rate of 8%. What is the maximum mortgage that the Hall’s can seek?

Round your answer to the nearest whole dollar.

(a)  

Tags

TEKS.MATH.9-12.VII.C.1

Use the chart to assist you in solving this question:

The Perez family found the perfect house for $300,000. They made a down payment of 20%. They will finance the house over 30 years at an interest rate of 7.5%. What is their monthly payment?

Round your answer to the nearest cent.

Mathematical Equivalence

ON

Tags

TEKS.MATH.9-12.II.C.1

Use the chart to assist you in solving this question:

The Perez family found the perfect house for $300,000. They made a down payment of 20%. They will finance the house over 30 years at an interest rate of 7.5%. How much did they pay over the lifetime of the loan?

Round your answer to the nearest whole dollar.

Mathematical Equivalence

ON

Tags

TEKS.MATH.9-12.II.C.1

Use the chart to assist you in solving this question:

The Perez family found the perfect house for $300,000. They made a down payment of 20%. They will finance the house over 30 years at an interest rate of 7.5%. How much did they pay in interest over the lifetime of the loan?

Round your answer to the nearest whole dollar.

Mathematical Equivalence

ON

Tags

TEKS.MATH.9-12.II.C.1

Jaiden is purchasing her first home. She has offered $225,000 for the house, and it has been accepted. Her closing costs will total $5,000. She will make a down payment of $45,000 and finance the rest of the costs over 25 years at an interest rate of 7%. Find her monthly payment using the TVM Solver.

Round your answer to the nearest cent.

(a)  

Tags

TEKS.MATH.9-12.VII.C.1

TEKS.MATH.9-12.VIII.A.1

Match the following terms:

• a mortgage with a fixed interest rate

• fixed-rate mortgage

• insurance that protects lenders against default

• home equity loan

• a mortgage with an interest rate that can change

• adjustable-rate mortgage

• a loan that allows homeowners to borrow against their equity

• private mortgage insurance

• a loan used to purchase a home

• mortgage

To qualify for a mortgage, the monthly housing expense should be no more than 30% of the monthly

gross income. The Fogle family grosses $4,800 a month. What is the maximum allowable monthly payment they can afford?

(a)  

Tags

TEKS.MATH.9-12.II.C.1