Mortgages Mar04 2009

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  • 1. http://www.mls.ca/splash.aspx
  • 2. Mortgages def'n ­ A loan secured by property.  The amount of money you borrow; initially the difference  Principal 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  Mortgage payment interest Amortization Period The actual number of years it will take to repay the  entire mortgage.  Term The length of time that a specific mortgage agreement  covers, generally between 6 months and 10 years. 
  • 3. 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
  • 4. Gino purchases a home with a market value of $209 000. His  downpayment is  $45 000. Determine Gino's equity. 
  • 5. 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
  • 6. 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. 
  • 7. With Katherine's first payment how much of it will be interest?  What is Katherine's equity amount for her home? 
  • 8. Assignment #3 Page 27 Work, work, work