# House Hunting Finding your own place is exciting, but it is also a big responsibility. What are some costs associated with renting or buying a home?

## Presentation on theme: "House Hunting Finding your own place is exciting, but it is also a big responsibility. What are some costs associated with renting or buying a home?"— Presentation transcript:

House Hunting Finding your own place is exciting, but it is also a big responsibility. What are some costs associated with renting or buying a home?

Lesson Objective Use a table or formula to determine the monthly payment, the total amount paid, and the total interest charged.

Carol and Adam Burke have applied for an \$80,000.00 mortgage loan at an annual interest rate of 8.00 percent. The loan is for a period of 30 years and will be paid in equal monthly payments that include interest. (Use the Monthly Payment for a \$1,000 Loan table on page A13 of your textbook.) What is the total amount of interest charged? Example 1

Find the monthly payment. Amount of Mortgage × Monthly Payment \$1,000 for a \$1,000 Loan \$80,000.00 × \$7.34 = \$587.20 \$1,000.00 Example 1 Answer: Step 1

Find the amount paid. Monthly Payment × Number of Payments \$587.20 × (12 months × 30 years) \$587.20 × 360 = \$211,392.00 Example 1 Answer: Step 2

Find the total interest charged. Amount Paid – Amount of Mortgage \$211,392.00 – \$80,000.00 = \$131,392.00 Example 1 Answer: Step 3

(Use the Monthly Payment for a \$1,000 Loan table on page A13 of your textbook.) Selling price: \$276,000. Down payment: 25 percent. Terms: 8 percent for 15 years. What is the total interest charged? Practice 1