6.1-6.2

Madison Graham

6-1 Vocab

  • Down payment- a percentage of the total cost of the purchase, to their lender.
  • Mortgage loan-taken with a bank or other lender.
  • Principal- the money borrowed
  • Closing cost- are fees and expenses paid to complete the transfer of ownership of a home.
  • Mortgage loan= purchase price - down payment
  • Cash needed to buy a home= down payment + closing cost.
  • Calculate the down payment, closing cost, and mortgage loan amount
  • Calculate the total interest cost of a mortgage loan
  • Calculate the savings from refinancing mortgages

6-2 Vocab

depreciation- is the loss in value of property caused by aging and use.

security deposit- in addition to their first month's rent when they sign a lease, or a rental agreement.

calculate the cost of home ownership

calculate the cost of renting a home or apartment

compare the costs of renting vs. owning.