Financial Math: Home Sweet Home Quiz

What is a mortgage?

• A tax on property

• A monthly bill for homeowners

• A type of insurance

• a loan that is specifically for purchasing a

  house

What are included in the closing costs of the house?

Check ALL that apply

• Appraisals

• Administration fees

• Taxes

• Attorney fees

What will the buyer have to pay if the down payment is less than 20%?

• HOI

• HOA

• APR

• PMI

What is PMI?

• Private Mortgage Insurance

• Personal Mortgage Insurance

• Property Maintenance Insurance

• Property Mortgage Insurance

What are amortization tables used for?

• Calculating property taxes

• Determining monthly mortgage payments on various rates and periods of home loans

• Estimating closing costs

• Calculating home owner's insurance

What is the maximum down payment range for a house?

• 15% to 20%

• 0% to 5%

• 5% to 10%

• 10% to 15%

The Millhouse family is purchasing a new home. They have a combined net monthly income of

$4,500. Their combined monthly bills total $1,235. They would like to keep $2,000 back for charitable

donations and savings. What amount would be left to pay the mortgage on the new home?

• $2,000

• $1,265

• $4,500

• $3,235

The Millhouse family will take out a loan of $140,000. The interest rate on the loan will be 7.5%. What

would be least amount of years they could take out the home loan and still keep the payment under

$1,265? What would be the monthly payment?

• 30 yrs; $978.60

• 10 yrs; $1,668.10

• 15 yrs; $1,297.80

• 20 yrs; $1,128.40

What is the least amount of years the Millhouse family can take out the home loan and keep the payment under $1,265?

• 15 years

• 10 years

• 25 years

• 20 years

Will the Millhouse family qualify for the loan with their monthly payment?

• Depends on the interest rate

• Not enough information

• No

• Yes