6­1 borrowing to buy a home.notebook

1

January 31, 2017

Jan 30­8:25 AM

Bell Work 1/30/2017

You are buying a house for $130,000. You are making a 20% down payment, and your closing

costs total $3,945.

a. How much cash do you need?

b. What percent of the price of the house are your closing costs?

Feb 10­9:47 AM

Bell Work 2/11/2016

You buy a house for $115,000. You have these closing costs: Inspections, $300; Appraisal, $500; Title fee and insurance; $1,020; and legal fees of $600. a. What percent of the price of the house are the closing costs? You are also paying a 12% down payment. b. How much will you borrow, and

c. how much cash do you need to save?

Feb 12­7:04 AM

6­1 Continued

EQ:

How is interest cost of a mortgage calculated?

Feb 12­7:05 AM

Total amount paid=monthly payment x 12 x years

Interest= Total amount paid ­ borrowed amount

Feb 11­7:55 AM Feb 12­7:06 AM

Amira wants to buy an $83,000 home. She has $13,000 for the down payment, and her bank will lend her $70,000 for 25 years at an 8% interest rate. What is her monthly payment? What is the total amount of interest she will

pay?

6­1 borrowing to buy a home.notebook

2

January 31, 2017

Feb 12­7:09 AM

Marvin bought a home for $95,000 with a $15,000 down payment. His mortgage is for

20 years at 7%. What is his monthly payments and total paid interest over the 20 years?

Feb 16­8:17 AM

Bell Work 2/16/2016

You borrowed $95,000 for a house, and at the end of the 15 year term, you had spent $158,000. How much was your monthly

payment? How much interest did you pay?

Feb 11­8:33 AM

EQ: How are the savings from refinancing calculated?

Feb 12­7:09 AM

refinancing a mortgage­taking out a new mortgage and using the money to pay off an old

mortgage

why would you do this?

Feb 12­7:10 AM

The Rowes had a monthly payment on their old mortgage that was $511.09. They got a new mortgage and their monthly payment is now $340.73. To refinance, they paid $1435 in

closing costs. How much did they save in the first year?

Feb 12­7:12 AM

Nancy's monthly payment is $597. She can refinance her loan with a mortgage that has a monthly payment of $465. The total cost of getting a new mortgage is $836. What is her

first year savings?