The document discusses home loans and mortgages. It explains that most people finance home purchases through a mortgage, which is a loan secured by the property. If the borrower does not repay the loan, the lender can foreclose on the property. There are also costs associated with mortgages like interest rates, mortgage insurance, and points - an upfront fee that may help secure a better interest rate. The document goes on to discuss terms like adjustable rate mortgages, fixed rate mortgages, refinancing, and foreclosure.

1. Home loans
Book 2 Unit3

2. 1.How do people finance the purchase
of a home in your country?

3. Most people finance the purchase of a
home in my country with a mortgage.
This is a loan specifically for buying
property, where that property is used by
the lender to guarantee payment. If a
borrower is unable to pay back the loan
the lender will foreclose on them and
take possession of the property.

4. 1.What are some costs associated
with getting a home loan ?

5. Some costs associated with getting a home loan
are the interest rate that must be paid as well as
mortgage insurance and points, an upfront
payment which may be used to get a better
interest rate on a home loan.

6. Word bank
Down payment
Foreclosed
Fixed rate
Adjustable rate
Refinance
Mortgage insurance
Points
Amortize
Foreclosures

7. Ex 2.

8. Ex 3

9. Ex 4
Variation:
Interest:
Payment:

10. Ex 5
1.Why might somebody choose an
adjustable rate mortgage?

11. Ex 6
1.
2.
3.

12. Ex 7
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.
• 7.

13. Suggested answer 8
A: So what are my options for a 15-year fixed rate mortgage loan?
B: I have two for you. The main advantage of the first is its low rate -4.65%
A: Wow! That sounds great.
B: The rate is very low, but the downside is that it requires a 20% down
payment.
A: Ouch. That’s a bit steep. I don’t think I can afford that much.
B: You can still get the loan, but we’ll add on four points.