Exam 10: Purchasing and Financing a Home

Buying a home may be the single biggest investment you will ever make, so the decision should be taken very seriously.

Tiffany and Jason want to obtain a $72,000 mortgage. Their payments would be $730 for a 15-year mortgage and $579 for a 30-year mortgage. What would be their total savings in interest by using a 15-year mortgage?

Which of the following is false about condominiums?

Is purchasing a home an expense, an investment, or both?

Use the following two columns of items to answer the matching questions below: -amortization schedule A)schedule of payments, interest expense, and balance B)fixed interest rate until maturity

While interest rates have been historically low for the past 8 years, rates have started to increase and may continue to rise over the coming year. Given the interest rate environment, which type of mortgage would be best for your new home?

For a conventional mortgage you will typically need a(n) ________ of from 10% to 20% of the selling price of the home you are purchasing.

In the decision to rent or purchase a home the ________ of any security deposit that you would put down on a rental home must be part of the decision.

The schedule that shows your monthly home payment and the amounts applied to principal and interest each month is called a depreciation table.

Which of the following would you not factor into a decision to buy or rent a house?

The type of mortgage that is usually the shortest term and will require further action at the end of it is a(n)

Chuck obtained a mortgage of $90,000 to finance a $120,000 home. The title search will be $400, appraisal fee $500, application fee $900, and he will pay 1% origination fee. How much are his closing costs?