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Mortgage Payment and Points Analysis

Mortgage Payment and Points Analysis

Assessment

Interactive Video

Business

9th - 10th Grade

Hard

Created by

Thomas White

FREE Resource

The video tutorial explores two mortgage options: a 30-year loan at 4.6% interest without points and a 30-year loan at 4.3% interest with two points. It provides detailed calculations for monthly payments and total payments over 30 years for both options. The tutorial advises that paying points is beneficial if you plan to stay in the house for 20-30 years, as it results in lower total payments. However, if you plan to move within 5-10 years, the no points option is better. The video emphasizes understanding financial decisions and suggests consulting with banks for break-even analysis.

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15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the total amount to be mortgaged in the example?

$200,000

$350,000

$250,000

$300,000

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT considered in the mortgage example?

Interest rate

Closing costs

Loan term

Down payment

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the interest rate for the 30-year loan without points?

5.0%

4.6%

4.3%

5.3%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many years is the loan term for both mortgage options?

15 years

20 years

25 years

30 years

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the monthly payment for the first option without points?

$1,600.00

$1,500.00

$1,300.00

$1,281.61

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the total payment over 30 years for the first option?

$550,000

$500,000

$461,009.60

$400,000

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much are the points in the second option?

$2,500

$5,000

$7,500

$10,000

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