Mortgages and Home Ownership

Question 1

Use this example from a fixed rate mortgage calculator to help you answer the questions. Keep the page open after you complete this question.According to the calculator, the monthly payment Demarco and Tanya should anticipate paying for principal and interest is

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$669.

Question 2

higherlower

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lower

Question 3

$208$611$819

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$819

Question 4

$120,854✔ $104,854$169,854

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✔ $104,854; According to the amortization table, Demarco and Tanya will pay a total of in interest over the life of their loan.: $104,854; This means their total cost, including the $170,000 purchase price, is approximately .: $274,854

Question 5

$201,854$251,854✔ $274,854

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✔ $274,854

Question 6

principalinterest

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interest; According to the chart, by year 10, the majority of Demarco and Tanya’s payment will go toward the .: interest; By year 20, the majority of Demarco and Tanya’s payment will go toward the .: principal; Over time, the amount paid toward the principal will .: increase

Question 7

✔ principalinterest

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✔ principal

Question 8

✔ increasestay constantdecrease

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✔ increase

Question 9

Use this example from an adjustable-rate mortgage calculator to help you answer the questions.

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✔ $611; According to the calculator, the initial monthly payment Demarco and Tanya should anticipate paying on principal and interest is .: $611; This amount is than the fixed-rate mortgage payment for principal and interest.: lower; The total amount they should anticipate paying monthly is .: $819

Question 10

higher✔ lower

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✔ lower

Mortgages and Home Ownership Answers

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