Lesson 3 Feb 18 2010
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Transcript of Lesson 3 Feb 18 2010
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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
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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
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Harley purchases a home with a market value of $209 000. His downpayment is $45 000. Determine Harley's equity.
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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
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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.
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With Meagan's first payment how much of it will be interest?
What is Meagan's equity amount for her home?
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Assignment #3 Page 27
Work, work, work