Lesson 4: The Hidden Costs of Purchasing a Home - Michelle Laskowski | Laabri

1

A future homeowner calculates their monthly mortgage payment to be $1700. If their property taxes are $5000 a year and their home insurance is $1150 a year, how much should they budget per month for mortgage payments, insurance and tax?

$7850

$2116.66

$2212.49

1

A future homeowner is writing up their home offer. In their offer they must identify how much money they would like to include in their earnest money. Typically earnest money is 1% of the house listing price. If the house is going for $325,000, how much money should the buyer put down as their earnest money?

$3000

$3250

$3750

$30,000

1

In Washington, typically closing costs are 1.5% of the home’s listing price. If a home is listed for $600,000, how much cash should someone be ready to have on hand in order to put down a 12% down payment, and another 1.5% for closing costs?

$1500

$9000

$72,000

$81,000

$81,000 is ALOT! It is more likley that a family is going to be able to apply their equity from selling their last home (that was way cheaper) and be able to move into this home than simply saving that cash.

1

Suppose a buyer is about to buy a home that is $330,000. The buy is planning on putting $50,000 towards the down payment. How much will the buyer have to take out in a mortgage?

50,000

280,000

330,000

1

Suppose a buyer is about to buy a home that is $330,000. The buy is planning on putting $50,000 towards the down payment. How much will the monthly payment for the mortgage be if the buyer takes out a 30 year mortgage with a 3.75% interest rate?
(HINT USE THE MONTHLY LOAN FORMULA)
(HINT HINT, remember, the p value is how much you need to borrow)

$1528.28

1,296.72