def'n A loan secured by property.
The amount of money you borrow; initially the difference
between the selling price of the property and the down payment
Interest The amount you will pay for borrowing money
A regular installment, usually made up of principal and
Amortization Period The actual number of years it will take to repay the
Term The length of time that a specific mortgage agreement
covers, generally between 6 months and 10 years.
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.
Gino purchases a home with a market value of $209 000. His
$45 000. Determine Gino'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.
Katherine 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 Katherine's monthly payment.
With Katherine's first payment how much of it will be interest?
What is Katherine's equity amount for her home?