Mortgage Worksheet

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 (including repairs, deposit, etc.). Mortgage Calculator Worksheet Equal Monthly Payment per $1,000 TERM RATE 7% 7 1⁄4 7 1⁄2 7 3⁄4 8 8 1⁄4 8 1⁄2 8 3⁄4 9 9 1⁄4 9 1⁄2 9 3⁄4 10 10 1⁄4 10 1⁄2 10 3⁄4 11 11 1⁄4 11 1⁄2 11 3⁄4 12 12 1⁄4 12 1⁄2 12 3⁄4 13 13 1⁄4 13 1⁄2 13 3⁄4 14 14 1⁄4 14 1⁄2 14 3⁄4 15 15 1⁄4 15 1⁄2 15 3⁄4 16 16 1⁄4 16 1⁄2 17 17 1⁄4 17 1⁄2 18 18 1⁄4 18 1⁄2 19 19 1⁄4 19 1⁄2 20 20 1⁄4 20 1⁄2 21 21 1⁄4 21 1⁄2 22 22 1⁄4 22 1⁄2 23 23 1⁄4 23 1⁄2 24 121 1 86.53 86.65 86.76 86.88 86.99 87.11 87.22 87.34 87.46 87.57 87.69 87.80 87.92 88.04 88.15 88.27 88.39 88.50 88.62 88.74 88.85 88.97 89.09 89.21 89.32 89.44 89.56 89.67 89.79 89.91 90.03 90.15 90.26 90.38 90.50 90.62 90.74 90.85 90.97 91.21 91.33 91.45 91.68 91.80 91.92 92.16 92.28 92.40 92.64 92.76 92.88 93.12 93.24 93.36 93.60 93.72 93.84 94.08 94.20 94.32 94.56 2 44.78 44.89 45.00 45.12 45.23 45.35 45.46 45.58 45.69 45.80 45.92 46.03 46.15 46.27 46.38 46.50 46.61 46.73 46.85 46.96 47.08 47.20 47.31 47.43 47.55 47.66 47.78 47.90 48.02 43.14 48.25 48.37 48.49 48.61 48.73 48.85 48.97 49.09 49.21 49.45 49.57 49.69 49.93 50.05 50.17 50.41 50.54 50.66 50.90 51.02 51.15 51.39 51.51 51.64 51.88 52.01 52.13 52.38 52.50 52.63 52.88 3 30.88 31.00 31.11 31.23 31.34 31.46 31.57 31.69 31.80 31.92 32.04 32.15 32.27 32.39 32.51 32.63 32.74 32.86 32.98 33.10 33.22 33.34 33.46 33.58 33.70 33.82 33.94 34.06 34.18 34.30 34.43 34.55 34.67 34.79 34.92 35.04 35.16 35.29 35.41 35.66 35.78 35.91 36.16 36.28 36.41 36.66 36.79 36.91 37.17 37.30 37.42 37.68 37.81 37.94 38.20 38.32 38.45 38.71 38.85 39.98 39.24 4 23.95 24.07 24.18 24.30 24.42 24.54 24.65 24.77 24.89 25.01 25.13 25.25 25.37 25.49 25.61 25.73 25.85 25.97 26.09 26.22 26.34 26.46 26.58 26.71 26.83 26.96 27.08 27.21 27.33 27.46 27.58 27.71 27.84 27.96 28.09 28.22 28.35 28.47 28.60 28.86 28.99 29.12 29.38 29.51 29.64 29.91 30.04 30.17 30.44 30.57 30.70 30.97 31.11 31.24 31.51 31.65 31.78 32.06 32.19 32.33 32.61 5 19.81 19.92 20.04 20.16 20.28 20.40 20.52 20.64 20.76 20.88 21.01 21.13 21.25 21.38 21.50 21.62 21.75 21.87 22.00 22.12 22.25 22.38 22.50 22.63 22.76 22.89 23.01 23.14 23.27 23.40 23.53 23.66 23.79 23.93 24.06 24.19 24.32 24.46 24.59 24.86 24.99 25.13 25.40 25.53 25.67 25.95 26.08 26.22 26.50 26.64 26.78 27.06 7.20 27.34 27.62 27.77 27.91 28.20 28.34 28.48 28.77 10 11.62 11.75 11.88 12.01 12.14 12.27 12.40 12.54 12.67 12.81 12.94 13.08 13.22 13.36 13.50 13.64 13.78 13.92 14.06 14.21 14.35 14.50 14.64 14.79 14.94 15.08 15.23 15.38 15.53 15.68 15.83 15.99 16.14 16.29 16.45 16.60 16.76 16.91 17.07 17.38 17.54 17.70 18.02 18.18 18.35 18.67 18.84 19.00 19.33 19.50 19.66 20.00 20.17 20.34 20.67 20.85 21.02 21.36 21.53 21.71 22.05 15 8.99 9.13 9.28 9.42 9.56 9.71 9.85 10.00 10.15 10.30 10.45 10.60 10.75 10.90 11.06 11.21 11.37 11.53 11.69 11.85 12.01 12.17 12.33 12.49 12.66 12.82 12.99 13.15 13.32 13.49 13.66 13.83 14.00 14.17 14.34 14.52 14.69 14.87 15.04 15.40 15.57 15.75 16.11 16.29 16.47 16.83 17.02 17.20 17.57 17.75 17.94 18.31 18.50 18.69 19.06 19.25 19.44 19.82 20.01 20.20 20.59 30 6.66 6.83 7.00 7.17 7.34 7.52 7.69 7.87 8.05 8.23 8.41 8.60 8.78 8.97 9.15 9.34 9.53 9.72 9.91 10.10 10.29 10.48 10.68 10.87 11.07 11.26 11.46 11.66 11.85 12.05 12.25 12.45 12.65 12.85 13.05 13.25 13.45 13.65 13.86 14.26 14.46 14.67 15.08 15.28 15.48 15.89 16.10 16.30 16.72 16.92 17.13 17.54 17.75 17.95 18.36 18.57 18.78 19.19 19.40 19.61 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