Buying a House Project

Front

What is a down payment?

Back

The amount of money you pay up front in cash to buy a house.

Front

What percentage is a typical down payment?

Back

20% of the purchase price.

Front

How much can Mr. Schreiber afford to spend on housing per month if his annual salary is $120,000?

Back

$3,000 per month.

Front

Why do banks charge interest when you borrow money?

Back

They want to make money.

Front

If a house costs $350,000, what would the down payment be at 20%?

Back

$70,000.

Front

What is the purpose of a mortgage?

Back

A mortgage is a loan specifically for purchasing real estate.

Front

What does it mean to budget for housing?

Back

To allocate a specific portion of your income for housing expenses.

Front

What is the formula to calculate monthly housing budget?

Back

Monthly Salary x 30% = Monthly Housing Budget.

Front

What is equity in a home?

Back

Equity is the difference between the market value of a home and the amount owed on the mortgage.

Front

What is an interest rate?

Back

The percentage charged on a loan, expressed as an annual rate.