Mortgage Calculations and Concepts

The video tutorial explains how to calculate the loan amount for a $222,000 home with a 10% down payment, resulting in a loan of $199,800. It then demonstrates how to use the TI-84 TVM solver to calculate monthly payments for a 30-year loan at 6% interest, resulting in payments of $1,197.90. The tutorial further explores the impact of a 7% interest rate, increasing monthly payments to $1,329.27, highlighting the significance of interest rates in mortgage calculations.

What percentage of the home's price is the loan amount if a 10% down payment is made?

• 95%

• 90%

• 85%

• 80%

How much is the loan amount for a $222,000 home after a 10% down payment?

• $199,800

• $202,000

• $200,000

• $201,000

What is the total number of payment periods for a 30-year loan with monthly payments?

• 240

• 300

• 360

• 420

What is the monthly payment when the interest rate is 6%?

• $1,100.00

• $1,250.00

• $1,197.90

• $1,300.00

What is the future value of the loan after 30 years?

• $100,000

• $0

• $199,800

• $222,000

What tool is used to calculate the monthly payment in this tutorial?

• TI-84 TVM Solver

• Excel Spreadsheet

• Online Calculator

• Financial Advisor

What is the present value in the context of this loan?

• The future value of the loan

• The initial loan amount

• The down payment amount

• The home's market value

What happens to the monthly payment when the interest rate increases from 6% to 7%?

• It stays the same

• It doubles

• It decreases

• It increases by over $130

What is the monthly payment when the interest rate is 7%?

• $1,250.00

• $1,197.90

• $1,329.27

• $1,400.00

Why is the interest rate of a mortgage important?

• It decides the down payment

• It changes the home's value

• It affects the monthly payment amount

• It determines the loan term