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Buying a Home (Math) Review

Total questions: 18

Worksheet time: 3hrs 49mins

Name
Class
Date
1.

Pete pays $978 a year for real estate tax on his house.

He makes a tax payment quarterly.

How much does he pay each quarter for real estate tax?

a)

$244.50

b)

$195

c)

$214

2.

Chad pays $546 a year for real estate tax on his house.

He makes a tax payment each month.

How much does he pay each month for real estate tax?

a)

$45.50

b)

$35.25

c)

$52.25

3.

Sam found a house for $164,900. She needs a 20% down payment. How much does she need for down payment?

a)

34,560

b)

$32,980

c)

$47,562

4.

Larry found a house for $300,000. He pays 15% of price of the house as down payment. How much will the mortgage be?

a)

$125,560

b)

$225,500

c)

$255,000

5.

Martin wants to buy a house . He earns $45,000 a year. How much can he afford to borrow to buy a house. (Use banker's rule to solve)

a)

$112,500

b)

$125,560

c)

$200,000

6.

Security given for the payment of a loan is called:

a)

Collateral

b)

down payment

c)

credit

7.

The amount of money paid upfront at the time of purchase.

a)

security deposit

b)

collateral

c)

down payment

8.

A secure loan that is protected by security, or collateral, to ensure loan repayment.

a)

Securitized loan

b)

credit

c)

down payment

9.

Putting money into something to gain profitable returns.

a)

Credit

b)

Investment

c)

Collateral

10.

The final step in executing the real estate transaction. (sign contract to buy the house)

a)

Closing

b)

down payment

c)

Closing cost

11.

several fees that must be paid at the time of closing.

a)

Closing

b)

Closing cost

c)

expenses

12.

taxes on homes to raise money for schools and other services provided by local government are called:

a)

real estate tax

b)

income tax

c)

expenses

13.

Quarterly means...

a)

every 3 months or 4 times a year

b)

every 6 months or 2 times a year

c)

every 2 months of 6 times a year

14.

Sheena pays $2080 a year for real estate tax.

She pays the bank her real tax and mortgage payment together each month.

Her mortgage payment is $915 per month.

How much does she pay the bank each month?

a)

$1100.50

b)

$1088.33

c)

$915

15.

Hannah pays $480 a year for real estate tax on her house.

She makes a tax payment each quarter.

How much does her pay each quarter for real estate tax?

a)

$120

b)

$150

c)

$160

16.

Chris pays $1,780 a year for real estate tax on his house.

He sends a real estate tax payment each month to the bank with his mortgage payment.

His mortgage payment is $820 a month.

How much does he pay the bank altogether each month?

a)

$968.33

b)

$1000

c)

$974.54

17.

Alia’s closing costs are 5% of the price of the house. Her new house costs $150,000. How much will Alia have to pay for closing costs?

a)

$6,500

b)

$7,500

c)

$8,500

18.

Jack found a house he likes that cost $85,000 to buy the house. What annual income do you need to afford to borrow $ 85,000? (Hint: divide price by 2.5)

a)

$45,000

b)

$24,000

c)

$34,000