glencoe ch 10 Quiz

What is a mortgage loan?

• A loan to purchase a vehicle

• A bank loan against the house you purchase

• A loan for education

• A loan for business investment

What does the term 'interest' refer to in a mortgage context?

• The percentage of the property owned outright

• The tax benefits from the government

• The amount of money paid for the use of the lender's money

• The total cost of the house

What are closing costs in the context of purchasing a house?

• The final sale price of the house

• The initial offer made on a house

• Fees for utilities setup

• Various fees such as title search, credit check, preparation of documents, etc.

What does 'principal' mean in terms of a mortgage loan?

• The interest rate applied to the loan

• The original amount of a mortgage loan

• The total amount paid over the life of the loan

• The down payment made on the house

What is typically required as a down payment on a home purchase?

• 30 to 50% of the purchase price

• 5 to 20% of the purchase price

• 1 to 3% of the purchase price

• 25 to 30% of the purchase price

How is 'Total Interest Charged' on a mortgage calculated?

• Total payments made including down payment

• Amount paid over time minus the amount of the mortgage

• Interest rate multiplied by the principal

• Sum of all monthly payments

How is the total amount paid calculated in a payment plan?

• Monthly payment divided by the number of payments

• Monthly payment multiplied by the number of payments

• Monthly payment plus the number of payments

• Monthly payment minus the number of payments