Mortgage Calculations and Concepts

This video tutorial explains how to calculate mortgage payments, including down payment, loan amount, cost of points, monthly payments, and total interest over a 20-year period. It provides step-by-step instructions and uses a graphing calculator for verification.

What is the price of the home in the mortgage example?

• $150,000

• $175,000

• $200,000

• $225,000

What percentage of the home price is required as a down payment?

• 15%

• 10%

• 20%

• 25%

How much is the down payment for the home?

• $20,000

• $30,000

• $22,500

• $26,250

What is the loan amount after the down payment is made?

• $160,000

• $148,750

• $155,000

• $150,000

How much does each point cost as a percentage of the loan amount?

• 2%

• 1.5%

• 1%

• 0.5%

What is the total cost of the 2 points on the loan?

• $3,000

• $2,975

• $3,250

• $2,500

What is the monthly mortgage payment calculated by hand?

• $900.00

• $921.12

• $930.00

• $915.50

What is the interest rate used in the mortgage calculation?

• 3.75%

• 4.50%

• 4.00%

• 4.25%

How many total payments are made over the 20-year mortgage period?

• 200

• 240

• 180

• 220

What is the total interest paid over the life of the loan?

• $70,000

• $72,318.80

• $75,000

• $78,500