The document provides information about mortgages including definitions of key terms like principal, interest, amortization period, and term. It gives examples of calculating equity as the difference between a home's market value and outstanding mortgage principal. Examples show how to determine monthly mortgage payments given interest rates and loan amounts over set periods of time.

1. http://www.mls.ca/splash.aspx
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4. Mortgages
def'n ­ A loan secured by property.
Principal The amount of money you borrow; initially the difference
between the selling price of the property and the down payment
Interest The amount you will pay for borrowing money
Mortgage payment A regular installment, usually made up of principal and
interest
Amortization Period The actual number of years it will take to repay the
entire mortgage.
Term The length of time that a specific mortgage agreement
covers, generally between 6 months and 10 years.
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5. Equity: the value of the property, over and
above all claims, generally the difference
between the market value and the outstanding
principal of all mortgages relating to the
property.
http://www.investorwords.com/5605/home_equity.html
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6. Gabriel purchases a home with a market value of
$209 000. His downpayment is $45 000.
Determine Gabriel's equity.
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7. If you take out a mortgage for $125 000,
from the credit union for 25 years at a rate
of 6.75%, find the monthly payment.
http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf
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8. Samara purchases a home with a market value of
$297 000. She makes an initial down payment of
$35 000. She arranges a 20 year mortgage at 4.75%.
Calculate Samara's monthly payment.
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9. With Samara's first payment how much of it will be interest?
What is Samara's equity amount for her home?
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10. Assignment #3 Page 27
Work, work, work
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