Home Financing and Down Payments

The video tutorial explains how to determine the maximum home value you can finance with a given down payment. It starts by stating the requirement of a 20% down payment and rephrases the problem into a simpler question. The tutorial then formulates a mathematical equation to represent the problem and solves it to find the maximum home value you can afford. The solution shows that with a $24,000 down payment, you can finance a home worth up to $120,000.

What percentage of the home's value is required as a minimum down payment?

• 10%

• 15%

• 20%

• 25%

If you have $24,000 available for a down payment, what is the first step to determine the maximum home value you can afford?

• Find a real estate agent

• Calculate the interest rate

• Reword the problem into a simpler question

• Determine the loan term

What is the decimal equivalent of 20% used in the equation?

• 0.02

• 2.0

• 0.2

• 0.02

Which variable is used to represent the maximum home value in the equation?

• v

• y

• z

• x

What operation is performed to isolate the variable representing the maximum home value?

• Division

• Multiplication

• Subtraction

• Addition

What is the result of dividing $24,000 by 0.2 in the context of this problem?

• $120,000

• $240,000

• $48,000

• $60,000

What is the maximum home value you can finance with a $24,000 down payment?

• $100,000

• $120,000

• $140,000

• $160,000

What is the final conclusion of the video regarding the home value?

• You can finance a home worth $130,000

• You can finance a home worth $120,000

• You can finance a home worth $110,000

• You can finance a home worth $100,000