120 WORKSHEET Strategy #11 • Home Sweet Home: Homeownership and Equity
2 Mortgage Worksheet
A home is listed for sale at $125,000. If you make a 10% down payment, how much is the down
payment? What would be the size of the mortgage? With a fixed-rate mortgage of 30 years at
8%, what are the monthly payments you would be making?
Down payment: $_________________________
Mortgage: $______________________________
Monthly mortgage payment: $____________________
Let’s say you earn a yearly salary of $40,000. How much should you plan to spend on housing
per month?
My monthly rent or mortgage should be: $___________________
Brian and Jennifer have saved $8,000 for a down payment. Disregarding factors like taxes, what
is the highest-priced home they could afford based on a 10% down payment?
(Hint: home price x 0.10 = down payment)
The highest-priced home Brian and Jennifer can afford: $___________________
Latisha and Steve Johnson both work and are saving up to buy their dream home. Latisha earns
$46,000 per year and Steve earns $42,000 per year. What kind of monthly mortgage can they afford?
The Johnson’s monthly mortgage: $__________________
List the costs and benefits of renting. List the costs and benefits of buying and owning (includ-
ing repairs, deposit, etc.).
Mortgage Calculator Worksheet 121
Equal Monthly Payment per $1,000
TERM 1 2 3 4 5 10 15 30
RATE
7% 86.53 44.78 30.88 23.95 19.81 11.62 8.99 6.66
7 1⁄4 86.65 44.89 31.00 24.07 19.92 11.75 9.13 6.83
7 1⁄2 86.76 45.00 31.11 24.18 20.04 11.88 9.28 7.00
7 3⁄4 86.88 45.12 31.23 24.30 20.16 12.01 9.42 7.17
8 86.99 45.23 31.34 24.42 20.28 12.14 9.56 7.34
8 1⁄4 87.11 45.35 31.46 24.54 20.40 12.27 9.71 7.52
8 1⁄2 87.22 45.46 31.57 24.65 20.52 12.40 9.85 7.69
8 3⁄4 87.34 45.58 31.69 24.77 20.64 12.54 10.00 7.87
9 87.46 45.69 31.80 24.89 20.76 12.67 10.15 8.05
9 1⁄4 87.57 45.80 31.92 25.01 20.88 12.81 10.30 8.23
9 1⁄2 87.69 45.92 32.04 25.13 21.01 12.94 10.45 8.41
9 3⁄4 87.80 46.03 32.15 25.25 21.13 13.08 10.60 8.60
10 87.92 46.15 32.27 25.37 21.25 13.22 10.75 8.78
10 1⁄4 88.04 46.27 32.39 25.49 21.38 13.36 10.90 8.97
10 1⁄2 88.15 46.38 32.51 25.61 21.50 13.50 11.06 9.15
10 3⁄4 88.27 46.50 32.63 25.73 21.62 13.64 11.21 9.34
11 88.39 46.61 32.74 25.85 21.75 13.78 11.37 9.53
11 1⁄4 88.50 46.73 32.86 25.97 21.87 13.92 11.53 9.72
11 1⁄2 88.62 46.85 32.98 26.09 22.00 14.06 11.69 9.91
11 3⁄4 88.74 46.96 33.10 26.22 22.12 14.21 11.85 10.10
12 88.85 47.08 33.22 26.34 22.25 14.35 12.01 10.29
12 1⁄4 88.97 47.20 33.34 26.46 22.38 14.50 12.17 10.48
12 1⁄2 89.09 47.31 33.46 26.58 22.50 14.64 12.33 10.68
12 3⁄4 89.21 47.43 33.58 26.71 22.63 14.79 12.49 10.87
13 89.32 47.55 33.70 26.83 22.76 14.94 12.66 11.07
13 1⁄4 89.44 47.66 33.82 26.96 22.89 15.08 12.82 11.26
13 1⁄2 89.56 47.78 33.94 27.08 23.01 15.23 12.99 11.46
13 3⁄4 89.67 47.90 34.06 27.21 23.14 15.38 13.15 11.66
14 89.79 48.02 34.18 27.33 23.27 15.53 13.32 11.85
14 1⁄4 89.91 43.14 34.30 27.46 23.40 15.68 13.49 12.05
14 1⁄2 90.03 48.25 34.43 27.58 23.53 15.83 13.66 12.25
14 3⁄4 90.15 48.37 34.55 27.71 23.66 15.99 13.83 12.45
15 90.26 48.49 34.67 27.84 23.79 16.14 14.00 12.65
15 1⁄4 90.38 48.61 34.79 27.96 23.93 16.29 14.17 12.85
15 1⁄2 90.50 48.73 34.92 28.09 24.06 16.45 14.34 13.05
15 3⁄4 90.62 48.85 35.04 28.22 24.19 16.60 14.52 13.25
16 90.74 48.97 35.16 28.35 24.32 16.76 14.69 13.45
16 1⁄4 90.85 49.09 35.29 28.47 24.46 16.91 14.87 13.65
16 1⁄2 90.97 49.21 35.41 28.60 24.59 17.07 15.04 13.86
17 91.21 49.45 35.66 28.86 24.86 17.38 15.40 14.26
17 1⁄4 91.33 49.57 35.78 28.99 24.99 17.54 15.57 14.46
17 1⁄2 91.45 49.69 35.91 29.12 25.13 17.70 15.75 14.67
18 91.68 49.93 36.16 29.38 25.40 18.02 16.11 15.08
18 1⁄4 91.80 50.05 36.28 29.51 25.53 18.18 16.29 15.28
18 1⁄2 91.92 50.17 36.41 29.64 25.67 18.35 16.47 15.48
19 92.16 50.41 36.66 29.91 25.95 18.67 16.83 15.89
19 1⁄4 92.28 50.54 36.79 30.04 26.08 18.84 17.02 16.10
19 1⁄2 92.40 50.66 36.91 30.17 26.22 19.00 17.20 16.30
20 92.64 50.90 37.17 30.44 26.50 19.33 17.57 16.72
20 1⁄4 92.76 51.02 37.30 30.57 26.64 19.50 17.75 16.92
20 1⁄2 92.88 51.15 37.42 30.70 26.78 19.66 17.94 17.13
21 93.12 51.39 37.68 30.97 27.06 20.00 18.31 17.54
21 1⁄4 93.24 51.51 37.81 31.11 7.20 20.17 18.50 17.75
21 1⁄2 93.36 51.64 37.94 31.24 27.34 20.34 18.69 17.95
22 93.60 51.88 38.20 31.51 27.62 20.67 19.06 18.36
22 1⁄4 93.72 52.01 38.32 31.65 27.77 20.85 19.25 18.57
22 1⁄2 93.84 52.13 38.45 31.78 27.91 21.02 19.44 18.78
23 94.08 52.38 38.71 32.06 28.20 21.36 19.82 19.19
23 1⁄4 94.20 52.50 38.85 32.19 28.34 21.53 20.01 19.40
23 1⁄2 94.32 52.63 39.98 32.33 28.48 21.71 20.20 19.61
24 94.56 52.88 39.24 32.61 28.77 22.05 20.59 20.02
124 WORKSHEET Strategy #11 • Home Sweet Home: Homeownership and Equity
2 Home-Equity Worksheet
As you pay off your mortgage, your equity in your home increases. Can you think of another way
in which your equity in your home can also increase? (Hint: Your house is also an investment and
its value can change in the real-estate market.)
Describe the differences between a home-equity loan and a second mortgage.
a.
b.
c.
Sara bought her first home for $65,000 in 1998. She has paid off $10,000 of her mortgage so far.
How much collateral does she have?
Collateral = $__________________
If Sara uses her home to get a 30-year mortgage for $50,000 at an interest rate of 10%, what will
her monthly mortgage payment be?
a. $439
b. $500
c. $350