Exam 5: Making Automobile and Housing Decisions

A foreclosure happens when:

_____  are ongoing costs of home ownership.

The purchase price of the house you are buying is $140,000. A loan-to-value ratio of 80% will require a down payment of:

A veteran might be able to buy a home with no down payment with a(n):

Dick and Jane have just purchased a house and are calculating how much money they will need when the closing day rolls around. The purchase price is $200,000. They will make a 20% down payment, and they must pay two points on the loan. Closing costs should be 3% of the purchase price. What is the total dollar amount they will need at closing? (Show all work.)

If you purchase a house worth $110,000 and make a 10% down payment, how much would one mortgage point cost at closing?

_____ are loans offering low payments for the first few years, gradually increasing until year three or five, and then remaining fixed.

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer, and negotiates the price upward prior to signing the sales agreement.

A real estate sales contract will include:

A type of financing made available by a builder or seller to a potential new-home buyer at interest rates well below market interest rates, often only for a short period, is termed a:

In a co-op, the buyer receives title to a unit and joint ownership of the common areas.

A behavioral bias in which an individual tends to allow an initial estimate (of value or price)to dominate the subsequent assessment (of value or price)regardless of new information to the contrary is called:

_____ is a situation where homeowners owe more to the lenders than what their properties are worth.

An escrow account is used to collect _____ from one's monthly mortgage payment.

With prequalification, a buyer can:

The loss in the value of an automobile that occurs over its period of ownership is called:

The _____  governs closings on owner-occupied houses, condominiums, and apartment buildings of four units or fewer.

The job of a mortgage banker is to locate conventional loans for clients.

Matt is considering the purchase of a condo on a mortgage. However, he is not sure of the amount of the mortgage he is eligible for. _____  will help him identify and correct any problems such as credit report errors that may arise on his application.

The _____ governs closings on owner-occupied houses, condominiums, and apartment buildings of four units or fewer.