Home mortgage (MAKEUP)

What is the money you borrow called?

• interest

• principal

• down payment

The fee a bank charges to loan you money is called ________________.

• mortgage

• principal

• interest

Imagine Elijah takes out a mortgage to buy a house, choosing the longest repayment period offered. The downside of this decision is that the longer Elijah has the mortgage, the more _____.

• collateral that is required by the bank

• risk of defaulting on the mortgage

• equity will build after seven years

• total amount of interest paid

If the annual interest is 24%, what is the monthly interest rate?

• 24%

• .24

• 2%

• 2

What is the typical length for a mortgage loan?

• 3-5 years

• 36-60 months

• 15-30 months

• 15-30 years

What is a mortgage?

• is an unchanging rate charged on a liability, such as a loan or mortgage.

• is a loan from a bank that a person can use to finance the purchase of a house. 

• The amount of money a person pays upfront on a loan/payment.

• s a type of loan where the interest changes according to changes in market interest rates.

What is a Down Payment?

• is an unchanging rate charged on a liability, such as a loan or mortgage.

• is a loan from a bank that a person can use to finance the purchase of a house. 

• The amount of money a person pays upfront on a loan/payment.

• s a type of loan where the interest changes according to changes in market interest rates.

6a. Natalie and Andrew Prior are examining their payment schedule for their $280,000 mortgage. The mortgage was for 15 years and had an APR of 3.375%. What was the Prior’s monthly mortgage payment?

• $2,023.26

• $1,984.53

• $1,742.15

• $1,880.72

You want to buy a house that is valued at $215,000. You are putting 15% down. What is the down payment? What is the loan amount?

• $15; $214985

• $3225; $211,775

• $32,250; $182,750

6a. Natalie and Andrew Prior are examining their payment schedule for their $280,000 mortgage. The mortgage was for 15 years and had an APR of 3.375%. What was the Prior’s monthly mortgage payment?

• $2,023.26

• $1,984.53

• $1,742.15

• $1,880.72