tailieunhanh - Lecture Practical business math procedures (10/e): Chapter 15 - Jeffrey Slater

Chapter 15 - The cost of home ownership. After you have mastered the material in this chapter, you will be able to: List the types of mortgages available, utilize an amortization chart to compute monthly mortgage payments, calculate the total cost of interest over the life of a mortgage. | Chapter 15 The Cost of Home Ownership List the types of mortgages available Utilize an amortization chart to compute monthly mortgage payments Calculate the total cost of interest over the life of a mortgage The Cost of Home Ownership #15 Learning Unit Objectives Types of Mortgages and the Monthly Mortgage Payment Calculate and identify the interest and principal portion of each monthly payment Prepare an amortization schedule The Cost of Home Ownership #15 Learning Unit Objectives Amortization Schedule -- Breaking Down the Monthly Payment Table - Amortization Chart (PARTIAL) (Mortgage principal and interest per $1,000) Computing the Monthly Payment for Principal and Interest Gary bought a home for $200,000. He made a 20% down payment. The 9% mortgage is for 30 years (30 x 12 = 360 payments). What are Gary’s monthly payment and total cost of interest? Step 2. Look up the rate (9%) and the term (30 years) in the amortization chart. At the . | Chapter 15 The Cost of Home Ownership List the types of mortgages available Utilize an amortization chart to compute monthly mortgage payments Calculate the total cost of interest over the life of a mortgage The Cost of Home Ownership #15 Learning Unit Objectives Types of Mortgages and the Monthly Mortgage Payment Calculate and identify the interest and principal portion of each monthly payment Prepare an amortization schedule The Cost of Home Ownership #15 Learning Unit Objectives Amortization Schedule -- Breaking Down the Monthly Payment Table - Amortization Chart (PARTIAL) (Mortgage principal and interest per $1,000) Computing the Monthly Payment for Principal and Interest Gary bought a home for $200,000. He made a 20% down payment. The 9% mortgage is for 30 years (30 x 12 = 360 payments). What are Gary’s monthly payment and total cost of interest? Step 2. Look up the rate (9%) and the term (30 years) in the amortization chart. At the intersection is the table factor. ($) Step 3. Multiply Step 1 by the factor in Step 2 $160 x $ = $1, Step 1. Divide the amount of the mortgage by $1,000 $160,000 = $160 $1,000 Computing Monthly Payment by Using an Amortization Chart Computing the Monthly Payment for Principal and Interest $160,000 = 160 x $ (table rate) = $1, $1,000 Total payments Mortgage Total interest $463,680 - $160,000 = $303,680 ($1, x 360) Monthly Payment Table - Effect of Interest Rates on Monthly Payments 9% 11% Difference Monthly payment $1, $1, $ (160 x $) (160 x $) Total cost of interest $303,680 $388,828 $85,248 ($1, x 360) - $160,000 ($ x 360) ($1, x 360) - $160,000 The Effect of Loan Types on Monthly Payments Suppose Gary chose a 15-year mortgage vs. a 30-year mortgage. What would be the effect? 15 Year 30 Year Difference Monthly Payment $1, $1, $ Total Interest $100,912 $303,680 ($202,768) ($1,

• Kinh tế học
• Home ownership
• Monthly mortgage payment
• Business math procedures
• Lecture Practical business math procedures
• Business math
• Toán kinh tế
• Math procedures
• Practical business
• Practical business math procedures
• Amortization schedule
• Business entities
• Individual taxation
• Multijurisdictional taxation
• Transfer taxes
• Tax consequences
• institutional ownership
• provides evidence
• Thermoplastic Matrix
• Towpregs
• Wood Plastic
• Curing Monitoring
• Housing policy in the UK
• Housing policy
• Home ownership in transition
• Deregulating the private rented sector
• Regulation of social housing
• Business mediator
• Business trip
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• Government ownership
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• Citizenship and Immigration Canada
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