Exam 10: Purchasing and Financing a Home

Most real estate agents agree that location is the most important influence on a home's future resale value.

During a period when interest rates are very low by historical standards and are expected to increase substantially over time, individuals should choose

Of the following fees involved in the purchase of a house, which is usually not borne by the purchaser?

Owning a home entails all of the following expenses, except

One point on an $80,000 loan for the purchase of a $110,000 home would equal

The size of the monthly payment on a mortgage is not dependent on the

Homes near areas that have just been zoned for industrial use become more valuable.

For a long-term home loan, such as 30 years, the amount of principal you pay on your loan during the first few years is quite small.

Describe some of the advantages and disadvantages of purchasing a home yourself instead of renting.

The schedule that discloses the monthly payment that you will make, based on a specific mortgage amount, a fixed interest rate level, and maturity is called a(n)

When buying a home, all of the following are economic factors one should consider, except

Of the following criteria for selecting a home, which would probably be least important for buyers older than 55?

The specific location of your home can influence the amount of property taxes and insurance you will pay.

If you anticipate your income rising slowly but steadily over the years, you may want to consider a

All of the following illustrate lessons learned regarding the 2008-2009 financial crisis, except

You currently have a 5-year adjustable variable rate mortgage which is 4 years into the adjustment period. The current interest rate is 3.5% per annum, and the rate is indexed to the 10-year Treasury note which is currently yielding 2.15%. Most financial forecasters are anticipating rate increases over the 2018-2019 period, but there is no consensus on the total amount of the increases. Given the interest rate environment, what would be the best course of action for your mortgage?

Which of the following is most important when selecting a home?

If you wish to keep your monthly payments as low and predictable as you can, you should use a

When buying a home, the seller pays the real estate agent's commission, so you pay no fee for the agent's services except in the form of a higher purchase price.

When choosing a home, a convenient location can save you considerable travel time and expenses.