Mortgages Answers

Giselle wants to buy a condo that has a purchase price of $163,000. Giselle earns $2,986 a month and wants to spend no more than 25% of her income on her mortgage payment. She has saved up $33,000 for a down payment. Giselle is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. What modification can be made to this loan to make it a viable option, given Giselle’s situation? a. Change to a 15 year fixed loan b. Change the interest to 5.5% c. Change the down payment to 18% down d. None. This is a viable option for Giselle. Please select the best answer from the choices provided

Why does it take 30 years to pay off $150,000 loan, even though you pay $1000 a month? a. Sales tax is really high for home mortgages, and that is why monthly payments are much higher than just paying off principal. b. Banks trick investors into paying more money monthly so they can pocket the rest. c. Most home owners are expected to miss about half of their payments, so banks take this into account when determining the term of the loan. d. Even though the principal would be paid off in just over 10 years, it costs the bank a lot of money to fund the loan. The rest of the loan is paid out in interest. Please select the best answer from the choices provided

Which of the following statements is true.I. The higher your interest rate, the higher your monthly mortgage payments.II. The higher your down payment, the higher your monthly mortgage payments.III. A 30 year mortgage fixed at 6% will have smaller payments that a 20 year mortgage fixed at 6%.a.I onlyb.II onlyc.I, II, and IIId.I and III

If the purchase price for a house is $445,500, what is the monthly payment if you put 5% down for a 30 year loan with a fixed rate of 6.25%?a.$2,740.19b.$2,605.87c.$1,314.84d.$1,249.10

Which term is defined as a fee charged for the use of money?a.interestb.down paymentc.principald.default

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Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessa’s monthly payments are $1,595.85. How much was Vanessa’s down payment? a. $9,314.45 b. $16,781.25 c. $40,275.00 d. $53,040.00 Please select the best answer from the choices provided

Peter wants to buy a duplex with a purchase price of $226,950. Peter can afford a 10% down payment. Peter earns $2,985 a month and wants to spend no more than 10% of his income on his mortgage payment. Peter is going to rent out the other half of the duplex. He thinks that if he charges $900 a month in rent this will cover the remainder of his mortgage payment. Given that Peter has a 30 year mortgage with a fixed rate of 6.25%, how should Peter adjust how much he charges for rent of the other half of the duplex?a.Peter should increase the rent by $200.b.Peter should increase the rent by $60.c.Peter should increase the rent by $10.d.Peter should keep the rent at $900.

If the purchase price for a house is $218,500, what is the monthly payment if you put 3.5% down for a 30 year loan with a fixed rate of 6.5%? a. $1,332.73 b. $1,378.19 c. $1,247.54 d. $646.40 Please select the best answer from the choices provided

What may be a concern if you have an adjustable rate mortgage (ARM)?a.After the initial fixed rate period, your rate may increase.b.Your payment will constantly change during your initial fixed rate period.c.After the initial fixed rate period, your rate may decrease.d.A portion of your rate pays the commission of your mortgage broker.