1. SECTION
10-1
Mortgage Loans pp

2. Key Words to Know mortgage loan (p. 344)
A property loan that gives the lender the right to seize and sell the property if the borrower fails to make the payments on the loan.

3. Formula
Mortgage Loan = Selling – Down
Amount Price Payment

4. Example 1
Nick and Nat consider purchasing a new home for $140,000. A 15 percent down payment is required.
What is the amount of the mortgage loan needed to finance the purchase?

5. Example 1 Answer: Step 1 Find the down payment.
$140,000 × 15% = $21,000

6. Example 1 Answer: Step 2 Find the mortgage loan amount.
Selling Price – Down Payment
$140,000 – $21,000 = $119,000

7. 345:1-12