1. Home loans
Book 2 Unit3

2. 1.How do people finance the purchase
of a home in your country?

3. Most people finance the purchase of a
home in my country with a mortgage.
This is a loan specifically for buying
property, where that property is used by
the lender to guarantee payment. If a
borrower is unable to pay back the loan
the lender will foreclose on them and
take possession of the property.

4. 1.What are some costs associated
with getting a home loan ?

5. Some costs associated with getting a home loan
are the interest rate that must be paid as well as
mortgage insurance and points, an upfront
payment which may be used to get a better
interest rate on a home loan.

6. Word bank
Down payment
Foreclosed
Fixed rate
Adjustable rate
Refinance
Mortgage insurance
Points
Amortize
Foreclosures

7. Ex 2.

8. Ex 3

9. Ex 4
Variation:
Interest:
Payment:

10. Ex 5
1.Why might somebody choose an
adjustable rate mortgage?

11. Ex 6
1.
2.
3.

12. Ex 7
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.
• 7.

13. Suggested answer 8
A: So what are my options for a 15-year fixed rate mortgage loan?
B: I have two for you. The main advantage of the first is its low rate -4.65%
A: Wow! That sounds great.
B: The rate is very low, but the downside is that it requires a 20% down
payment.
A: Ouch. That’s a bit steep. I don’t think I can afford that much.
B: You can still get the loan, but we’ll add on four points.