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SECTION. 10-1. pp. 344-345. Mortgage Loans. Compute: mortgage loan amount. Section Objective. Key Words to Know. mortgage loan (p. 344) A property loan that gives the lender the right to seize and sell the property if the borrower fails to make the payments on the loan. Formula. - PowerPoint PPT Presentation
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Mortgage Loans pp. 344-34510-1SECTIONSECTION
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Section ObjectiveSection ObjectiveCompute:
• mortgage loan amount
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mortgage loan (p. 344)
A property loan that gives the lender the right to seize and sell the property if the borrower fails to make the payments on the loan.
Key Words to KnowKey Words to Know
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Mortgage Loan = Selling – Down Amount Price Payment
Formula Formula
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The Hunt to Find a Home p. 344The Hunt to Find a Home p. 344
Why do you think a majority of homeowners take out 15- to 30-year mortgages as opposed to a 5-year mortgage?
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Jessica and Kirk Cramer consider purchasing a new home for $140,000. A 15 percent down payment is required.
What is the amount of the mortgage loan needed to finance the purchase?
Example 1Example 1
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Find the down payment.
$140,000 × 15% = $21,000
Example 1 Answer: Example 1 Answer: Step 1Step 1
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Find the mortgage loan amount.
Selling Price – Down Payment
$140,000 – $21,000 = $119,000
Example 1 Answer: Example 1 Answer: Step 2Step 2
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Santos and Anna Rivera made an offer of $158,000 on a home that was priced at $164,000. Their offer was accepted. They made a down payment of 25 percent and financed the remaining amount.
What is the amount of the mortgage?
Practice 1Practice 1
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Practice 1 AnswerPractice 1 Answer
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Mary Schoen is buying a house that costs $179,000. She made a 25 percent down payment.
What is the amount of the mortgage loan needed to finance the purchase?
Practice 2Practice 2
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Practice 2 AnswerPractice 2 Answer
Mortgage Loans10-1END OF SECTIONEND OF SECTION
