Understanding Home Financing

The video tutorial explains how Roberto purchased a $455,000 house with a 14% down payment and financed the rest at a 6.6% interest rate over 30 years. It details the calculation of the down payment, the total number of monthly payments, and the overall cost of the house, which amounts to $951,870.40. The tutorial provides a step-by-step guide to understanding the financial implications of such a purchase.

What was the initial cost of the house Roberto bought?

• $600,000

• $455,000

• $500,000

• $400,000

What percentage of the house price did Roberto pay as a down payment?

• 20%

• 14%

• 6.6%

• 10%

What is the interest rate on the financed amount?

• 8.6%

• 7.5%

• 5.5%

• 6.6%

How is the down payment calculated?

• By subtracting the percentage from the house price

• By dividing the house price by the percentage

• By multiplying the house price by the percentage

• By adding the house price to the percentage

What is the monthly payment amount Roberto has to pay?

• $2,600.00

• $2,467.14

• $2,500.00

• $2,400.00

How many total payments will Roberto make over the loan period?

• 360

• 240

• 180

• 300

How long is the loan term for Roberto's house financing?

• 30 years

• 25 years

• 20 years

• 35 years

What is the formula to calculate the total amount paid for the house?

• Down payment plus monthly payment times number of payments

• Down payment minus monthly payment times number of payments

• Down payment divided by monthly payment times number of payments

• Down payment times monthly payment plus number of payments

What is the total amount Roberto will pay for the house?

• $900,000.00

• $951,870.40

• $850,000.00

• $1,000,000.00