http://www.mls.ca/splash.aspx

Mortgages

def'n ­ A loan secured by property.

Principal

Interest

Mortgage payment

Amortization Period

Term

A regular installment, usually made up of principal and interest

The actual number of years it will take to repay the entire mortgage.

The length of time that a specific mortgage agreement covers, generally between 6 months and 10 years.

The amount of money you borrow; initially the difference between the selling price of the property and the down payment

The amount you will pay for borrowing money

Equity: the value of the property, over and above all claims, generally the difference between the market value and the outstanding principal of all mortgages relating to the property.

http://www.investorwords.com/5605/home_equity.html

Harley purchases a home with a market value of $209 000. His downpayment is $45 000. Determine Harley's equity.

If you take out a mortgage for $125 000, from the credit union for 25 years at a rate of 6.75%, find the monthly payment.

http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf

Meagan purchases a home with a market value of $297 000. She makes an initial down payment of $35 000. She arranges a 20 year mortgage at 4.75%. Calculate Meagan's monthly payment.

With Meagan's first payment how much of it will be interest?

What is Meagan's equity amount for her home?

Assignment #3 Page 27

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