Mortgage Loans
Find the down payment and the principal of the mortgage loan:
Selling Price: $132,600
Down Payment: 25%
Down: $33,150
Mortgage Principal: $99,450
Calculate the earnings that a buying agent would receive if she evenly split a 5% commission with the selling agent on a house that sold for $229,000
$5725
What does the P,R,N mean in this formula?
P( r ÷12)(1+ r ÷ 12) ^ n ÷ ( (1 + r ÷ 12) ^ n – 1)
P = Principal
r = rate
n = number of monthly payments
A loan for a home is called a ____________ .
Mortgage
Find the down payment and the resulting principal for the mortgage loan:
Selling Price: $87,500
Down Payment: 15%
Down: $13,125
Mortgage Principal: $74,375
Calculate the earnings that a buying agent would receive if she evenly split a 5% commission with the selling agent on a house that sold for $415,000
$10,375
How do you find the total interest? (Has to include all 3 steps)
1. Calculate Monthly Payment.
2. Multiply monthly payments by the amount of months to find total monthly payments.
3. Subtract total monthly payments from Principal to find total interest.
After making a ____________ ,ideally of at least 20% of the house price, most people take out a mortgage to pay the balance.
Down Payment
Find the down payment and the resulting principal for the mortgage loan:
Selling Price: $306,200
Down Payment: 17.5%
Down: $53,585
Mortgage Principal: $252,615
Calculate the earnings that a buying agent would receive if she evenly split a 5% commission with the selling agent on a house that sold for $78,000
$1950
Find the monthly payment of a house valued at $380,000 with a 10% down payment for 30 years at 5.9% APR. (Reminder: Down payment is not included in monthly loan payments)
M= (P ( r / 12)(1 + r /12) ^ (12(t) )) /( (1 + r / 12) ^ (12(t)) – 1)
$2028.53
_________________ occurs when the bank forecloses on (takes possession of) the home and sells it if the homeowner cannot pay the mortgage.
Forclosure
Find the down payment and the resulting principal for the mortgage loan:
Selling Price: $198,000
Down Payment: 12.5%
Down: $24,750
Mortgage Principal: $173,250
Calculate the earnings that a buying agent would receive if she evenly split a 5% commission with the selling agent on a house that sold for $425,000
$10,625
Find the monthly payment of a house valued at $925,000 with a 15% down payment for 30 years at 3.4% APR. (Reminder: Down payment is not included in monthly loan payments)
M= (P ( r / 12)(1 + r /12) ^ (12(t) )) /( (1 + r / 12) ^ (12(t)) – 1)
$3486.87
__________________ is a loan where only the interest is paid until the final month for a house. In the final month, the principal must be paid in full.
Balloon Mortgage
Find the down payment and the resulting principal for the mortgage loan:
Selling Price: $799,999
Down Payment: 36%
Down: $287,999.64
Mortgage Principal: $511,999.36
Calculate the earnings that a buying agent would receive if she evenly split a 5% commission with the selling agent on a house that sold for $545,000
$13,625
Find the monthly payment for a house valued at $310,000 on a 30 year loan with a 20% down payment at 5.25% APR. (Reminder: Down payment is not included in monthly loan payments)
M= (P ( r / 12)(1 + r /12) ^ (12(t) )) /( (1 + r / 12) ^ (12(t)) – 1)
$1,369.47
_________________ of a home is an amount used to determine the property taxes. The _____________ may not be the same as the market value.
Assessed Value