Topic Test Answers

You have decided to buy a new home and the bank offers you a 10 year fixed loan at 5.0% on a balance of $275,325. Use the table provided to determine the monthly payments.

The home that you are interested in purchasing is listed at $135,000. In order to get financing, you have to place a 15% down payment. From the given information, determine the amount of the down payment.

You have found a home that you are interested in purchasing. Instead of a conventional loan, you agree to pay the premium for the private mortgage insurance (PMI), which finances 95% of the loan. The amount of the home is listed at $95,278. From the given information, determine the amount needed for the down payment to qualify for the PMI loan.