Question 1

Bill Byad bought an oceanfront condominium for $79,900 with $6,900 down. If the mortgage rate was 15% instead of 14 ½% for 30 years, what would be the difference in the monthly payment?

Accepted Answer

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Question 2

Tom Burke buys a home in Virginia for $125,000. He puts down 40% and obtains a mortgage for 30 years at 11%. What are (A)Tom's monthly payment and (B)the total interest of the loan?

Accepted Answer

The answer of Tom Burke buys a home in Virginia...

Question 3

John Smith is buying a condominium for $190,000. He is putting down $20,000 at the time of closing. John must pay in addition 2 points. Calculate the cost of the points.

Accepted Answer

$190,000 - $20,000 = $170,000 × .02 = $3,400.

Question 4

Bill Smoss buys a chalet for $285,000 in the White Mountains of New Hampshire. He puts down $15,000. At the time of closing, he must pay in addition 3 points. In dollars what does that represent in regard to the points?

Accepted Answer

$285,000 - $15,000 = $270,000; $270,000 × .03 = $8,100.

Question 5

Tom Burke buys a home in Virginia for $125,000. He puts down 40% and obtains a mortgage for 30 years at 11%. If Tom could have obtained a 1% reduction from 11% to 10% in the mortgage rate, by how much would his monthly payment be reduced?

Accepted Answer

The answer of Tom Burke buys a home in Virginia...

Question 6

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate the total cost of interest for Marvin Bass.

Accepted Answer

$180,000 - $50,000 = $130,000; $130,000 / $1,000 = 130; 130 × $12.04 = $1565.20; $1565.20 × 300 = $469,560; $469,560 - $130,000 = $339,560.

Question 7

Kerry has a $1,973 per month mortgage payment. He decides to refinance his $204,000 balance at 5% over 20 years. What is his new monthly payment?

Accepted Answer

$204,000/1,000 = 204; 204 × $6.60 = $1,346.40.

Question 8

If a home sells for $150,000 with one-third down at a rate of 11% for 25 years, calculate (A)amount of mortgage and (B)the monthly payment.

Accepted Answer

The answer of If a home sells for $150,000 with...

Question 9

Marvin Bass bought a home for $180,000, putting down $50,000. The rate of interest is 14% for 25 years. Calculate (A)Marvin's payment per $1,000 and (B)his monthly mortgage payment.

Accepted Answer

The answer of Marvin Bass bought a home for $180,000,...

Question 10

With a mortgage of $100,000 at 7% for 15 years, prepare a one-month amortization schedule. What is the balance after the first month's payment?

Accepted Answer

$100,000 / $1,000 = 100; 100 × $8.99 = $899 monthly payment; I = $100,000 × .07 × 1/12 = $583.33; $899 - $583.33 = $315.67 principal reduction; $100,000 - $315.67 = $99,684.33.

Question 11

Shelley purchased a home in Maryland Heights, MO, for $204,000. Her down payment was 20% of the cash price, and she obtained a mortgage for 20 years at 7%. What are Shelley's (A)monthly payment and (B)total finance charges?

Accepted Answer

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Question 12

Calculate the balance outstanding after the first payment. Given: selling price of $150,000, one-third down, and an 11% mortgage for 25 years.

Accepted Answer

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Question 13

With a selling price $150,000, a 20% down payment, and a mortgage at 13% for 25 years, calculate:
A. Amount of mortgage
B. Monthly payment
C. Interest portion of first payment
D. Principal portion of first payment

Accepted Answer

The answer of With a selling price $150,000, a 20%...

Question 14

Mindy bought a home for $249,500 with a down payment of $30,000. Her rate of interest is 6.5% for 35 years. Calculate her monthly payment by using the table lookup.

Accepted Answer

The answer of Mindy bought a home for $249,500 with...

Question 15

Use the table provided in the handbook. Janet Fence bought a home for $100,000 with a down payment of $20,000. The rate of interest was 7% for 35 years. Calculate (A)her payment per $1,000 and (B)her monthly mortgage payment.

Accepted Answer

The answer of Use the table provided in the handbook....

Question 16

Bill bought an oceanfront condominium for $79,900, with $6,900 down. Assuming an interest rate of 14 ½% for 30 years, (A)what is the monthly payment and (B)if 1 point is charged at closing, what will that be in dollars?

Accepted Answer

A. $79,900 - $6,900 = $73,000; $73,000 / $1,000 = 73; 73 × $12.25 = $894.25; B. $73,000 × .01 = $730.

Quiz 15: The Cost of Home Ownership