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1. They financed the loan balance of $306,500 using an adjustable rate mortgage (ARM). The monthly payment of $1100 did not include taxes and insurance. In fact, the monthly payment was all interest, meaning that nothing was applied against the debt each month Find the monthly payment given taxes of S6400 per year and insurance of $980 per year, 2. At the time of the purchase in 2008, the Dustons were told that the interest rate on their ARM loan would reset in 2011, so they knew the payments might increase. However, they were not worried since they assumed that their incomes and also the value of the house would be higher by then. But home prices fell across much of the country as did the value of their home. By 2011. an appraiser estimated that it was worth only 75% of the original loan balance of $306,500, which they still owed. They were underwater on their home! Find out what the house was worth in 2011 and the amount by which they were underwater 3. The Dustons were shocked to find out that they would have to come up with $76,625 to pay off the bank loan to sell their home. They were further shocked to find out they would also need to come up with an additional $23,000 to pay various expenses, such as the real estate commission related to the sale of their home. Estimate the total amount they would have to pay to sell their home, rounded to the nearest thousand. 4. The Dustons did not have the funds needed, so they asked about refinancing the loan bal- ance of $306,500. At first, the bank wanted them to pay off the loan, but it finally agreed to try to work to refinance it. The Dustons felt trapped! It was difficult to understand that they were underwater by so much given that they had made every payment on time for 3 years. With the help of a government program designed to help underwater homeowners current on their mortgage payments, the bank agreed to refinance $285,000 on the home on a 30- year fixed mortgage at 5%. The difference between the debt of S306,500 and $285.000 was essentially forgiven due to the government program. Find the new home payment not including taxes and insurance. 1. They financed the loan balance of $306,500 using an adjustable rate mortgage (ARM). The monthly payment of $1100 did not include taxes and insurance. In fact, the monthly payment was all interest, meaning that nothing was applied against the debt each month Find the monthly payment given taxes of S6400 per year and insurance of $980 per year, 2. At the time of the purchase in 2008, the Dustons were told that the interest rate on their ARM loan would reset in 2011, so they knew the payments might increase. However, they were not worried since they assumed that their incomes and also the value of the house would be higher by then. But home prices fell across much of the country as did the value of their home. By 2011. an appraiser estimated that it was worth only 75% of the original loan balance of $306,500, which they still owed. They were underwater on their home! Find out what the house was worth in 2011 and the amount by which they were underwater 3. The Dustons were shocked to find out that they would have to come up with $76,625 to pay off the bank loan to sell their home. They were further shocked to find out they would also need to come up with an additional $23,000 to pay various expenses, such as the real estate commission related to the sale of their home. Estimate the total amount they would have to pay to sell their home, rounded to the nearest thousand. 4. The Dustons did not have the funds needed, so they asked about refinancing the loan bal- ance of $306,500. At first, the bank wanted them to pay off the loan, but it finally agreed to try to work to refinance it. The Dustons felt trapped! It was difficult to understand that they were underwater by so much given that they had made every payment on time for 3 years. With the help of a government program designed to help underwater homeowners current on their mortgage payments, the bank agreed to refinance $285,000 on the home on a 30- year fixed mortgage at 5%. The difference between the debt of S306,500 and $285.000 was essentially forgiven due to the government program. Find the new home payment not including taxes and insurance. 1. They financed the loan balance of $306,500 using an adjustable rate mortgage (ARM). The monthly payment of $1100 did not include taxes and insurance. In fact, the monthly payment was all interest, meaning that nothing was applied against the debt each month Find the monthly payment given taxes of S6400 per year and insurance of $980 per year, 2. At the time of the purchase in 2008, the Dustons were told that the interest rate on their ARM loan would reset in 2011, so they knew the payments might increase. However, they were not worried since they assumed that their incomes and also the value of the house would be higher by then. But home prices fell across much of the country as did the value of their home. By 2011. an appraiser estimated that it was worth only 75% of the original loan balance of $306,500, which they still owed. They were underwater on their home! Find out what the house was worth in 2011 and the amount by which they were underwater 3. The Dustons were shocked to find out that they would have to come up with $76,625 to pay off the bank loan to sell their home. They were further shocked to find out they would also need to come up with an additional $23,000 to pay various expenses, such as the real estate commission related to the sale of their home. Estimate the total amount they would have to pay to sell their home, rounded to the nearest thousand. 4. The Dustons did not have the funds needed, so they asked about refinancing the loan bal- ance of $306,500. At first, the bank wanted them to pay off the loan, but it finally agreed to try to work to refinance it. The Dustons felt trapped! It was difficult to understand that they were underwater by so much given that they had made every payment on time for 3 years. With the help of a government program designed to help underwater homeowners current on their mortgage payments, the bank agreed to refinance $285,000 on the home on a 30- year fixed mortgage at 5%. The difference between the debt of S306,500 and $285.000 was essentially forgiven due to the government program. Find the new home payment not including taxes and insurance. 1. They financed the loan balance of $306,500 using an adjustable rate mortgage (ARM). The monthly payment of $1100 did not include taxes and insurance. In fact, the monthly payment was all interest, meaning that nothing was applied against the debt each month Find the monthly payment given taxes of S6400 per year and insurance of $980 per year, 2. At the time of the purchase in 2008, the Dustons were told that the interest rate on their ARM loan would reset in 2011, so they knew the payments might increase. However, they were not worried since they assumed that their incomes and also the value of the house would be higher by then. But home prices fell across much of the country as did the value of their home. By 2011. an appraiser estimated that it was worth only 75% of the original loan balance of $306,500, which they still owed. They were underwater on their home! Find out what the house was worth in 2011 and the amount by which they were underwater 3. The Dustons were shocked to find out that they would have to come up with $76,625 to pay off the bank loan to sell their home. They were further shocked to find out they would also need to come up with an additional $23,000 to pay various expenses, such as the real estate commission related to the sale of their home. Estimate the total amount they would have to pay to sell their home, rounded to the nearest thousand. 4. The Dustons did not have the funds needed, so they asked about refinancing the loan bal- ance of $306,500. At first, the bank wanted them to pay off the loan, but it finally agreed to try to work to refinance it. The Dustons felt trapped! It was difficult to understand that they were underwater by so much given that they had made every payment on time for 3 years. With the help of a government program designed to help underwater homeowners current on their mortgage payments, the bank agreed to refinance $285,000 on the home on a 30- year fixed mortgage at 5%. The difference between the debt of S306,500 and $285.000 was essentially forgiven due to the government program. Find the new home payment not including taxes and insurance. 1. They financed the loan balance of $306,500 using an adjustable rate mortgage (ARM). The monthly payment of $1100 did not include taxes and insurance. In fact, the monthly payment was all interest, meaning that nothing was applied against the debt each month Find the monthly payment given taxes of S6400 per year and insurance of $980 per year, 2. At the time of the purchase in 2008, the Dustons were told that the interest rate on their ARM loan would reset in 2011, so they knew the payments might increase. However, they were not worried since they assumed that their incomes and also the value of the house would be higher by then. But home prices fell across much of the country as did the value of their home. By 2011. an appraiser estimated that it was worth only 75% of the original loan balance of $306,500, which they still owed. They were underwater on their home! Find out what the house was worth in 2011 and the amount by which they were underwater 3. The Dustons were shocked to find out that they would have to come up with $76,625 to pay off the bank loan to sell their home. They were further shocked to find out they would also need to come up with an additional $23,000 to pay various expenses, such as the real estate commission related to the sale of their home. Estimate the total amount they would have to pay to sell their home, rounded to the nearest thousand. 4. The Dustons did not have the funds needed, so they asked about refinancing the loan bal- ance of $306,500. At first, the bank wanted them to pay off the loan, but it finally agreed to try to work to refinance it. The Dustons felt trapped! It was difficult to understand that they were underwater by so much given that they had made every payment on time for 3 years. With the help of a government program designed to help underwater homeowners current on their mortgage payments, the bank agreed to refinance $285,000 on the home on a 30- year fixed mortgage at 5%. The difference between the debt of S306,500 and $285.000 was essentially forgiven due to the government program. Find the new home payment not including taxes and insurance. 1. They financed the loan balance of $306,500 using an adjustable rate mortgage (ARM). The monthly payment of $1100 did not include taxes and insurance. In fact, the monthly payment was all interest, meaning that nothing was applied against the debt each month Find the monthly payment given taxes of S6400 per year and insurance of $980 per year, 2. At the time of the purchase in 2008, the Dustons were told that the interest rate on their ARM loan would reset in 2011, so they knew the payments might increase. However, they were not worried since they assumed that their incomes and also the value of the house would be higher by then. But home prices fell across much of the country as did the value of their home. By 2011. an appraiser estimated that it was worth only 75% of the original loan balance of $306,500, which they still owed. They were underwater on their home! Find out what the house was worth in 2011 and the amount by which they were underwater 3. The Dustons were shocked to find out that they would have to come up with $76,625 to pay off the bank loan to sell their home. They were further shocked to find out they would also need to come up with an additional $23,000 to pay various expenses, such as the real estate commission related to the sale of their home. Estimate the total amount they would have to pay to sell their home, rounded to the nearest thousand. 4. The Dustons did not have the funds needed, so they asked about refinancing the loan bal- ance of $306,500. At first, the bank wanted them to pay off the loan, but it finally agreed to try to work to refinance it. The Dustons felt trapped! It was difficult to understand that they were underwater by so much given that they had made every payment on time for 3 years. With the help of a government program designed to help underwater homeowners current on their mortgage payments, the bank agreed to refinance $285,000 on the home on a 30- year fixed mortgage at 5%. The difference between the debt of S306,500 and $285.000 was essentially forgiven due to the government program. Find the new home payment not including taxes and insurance

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