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Assignment 2: Borrowing for Owing A House

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.
What happens to the loan amount when you put down a larger down payment?
a)
Decreases
b)
Increases
c)
No change
2.
What happens to the cost of a loan when the APR is higher?
a)
Loan cost increases
b)
Loan cost decreases
c)
No change
3.
What is the consequence of having a poor credit score?
a)
None of these answers are correct
b)
May pay a higher APR
c)
May pay a lower APR
d)
Go to jail
4.
You want to pay less in overall interest. Every loan APR is the same. Select the best mortgage for you.
a)
10 year loan
b)
15 year loan
c)
20 year loan
d)
30 year loan
5.

Liz and Rob purchased a house for $565,000. They put 20% down on the house. What was their down payment?

a)

$113,000

b)

$452,000

c)

$11,300

d)

$553,700

6.

Marcus and Kenya purchased a house for $325,000. They put 15% down on the house. What is their mortgage amount?

a)

$48,750

b)

$276,250

c)

$32,500

d)

$292,500

7.

Jen Sue got a $275,000 mortgage for 25 years at 6.0%. How much will the monthly mortgage payment be? (google mortgage calculator to find calculator)

a)

$1,688.50

b)

$1,856.25

c)

$1,650

d)

$1,771

8.

Juan put down 25% on a $190,000. What are the monthly mortgage payments for a 20 year loan at 7.5%? (google mortgage calculator to find calculator)

a)

$47,500

b)

$142,500

c)

$1,148.55

d)

$966.08

9.

Jill purchased a house for $155,000. She paid 15% down. What are her monthly mortgage payments for a 30 year loan at 8.0%? (google mortgage calculator to find calculator)

a)

$967.05

b)

$231,750

c)

$23,250

d)

$1,017.11

10.

The loan a person gets to purchase a house or a condominium is called a __________.

a)

principal loan

b)

interest term loan

c)

P&I loan

d)

mortgage