Exam 8: The Home and Automobile Decision

You disagree with Ed "Shifty" Smith, a car salesperson, on the price of an open-end lease. He says the depreciation charge is only $6,000. What is the actual depreciation charge for a car now worth $23,000 that is expected to drop in value to $15,000 in two years?

You are in the process of purchasing a new home. Expenses that the buyer and seller incur when finalizing the transfer of the ownership of the house are called

Special assessments are fees that can be charged to cooperative shareholders and condominium owners to cover large maintenance and repair items.

The largest cost associated with renting a home is the rent itself.

Suppose that you were thinking about leasing a new vehicle. Which of the following should not be an important consideration?

Name the items that are deposited in an escrow account.

The monthly payments on a 36-month lease on a car will often be smaller than the monthly payments on a 36-month loan to purchase the car.

What are some factors that determine whether a homeowner should refinance?

The difference between a co-op and a PUD is that

Open-end leases are leases in which you return the vehicle at the end of the lease and you have no further responsibilities.

Juanita has determined that the PITI on the house she would like to purchase will be $1,260 per month. What is the minimum gross salary she will need to qualify for a mortgage from a reputable lender?

Which of the following housing alternatives puts the responsibility for maintenance and repairs on the occupant?

There are always positive things you can do to change your credit score so it is worth the time to try and manage it.

For many consumers, a good school district is an important consideration when purchasing a home.

You are considering the purchase of an acre of land out in the country to build your future house on. You pay for an investigation of the public record to determine the current legal owner of the property. This is called a(n)

The common areas in a condominium complex may include swimming pools, parking lots, and grounds.

In many states rental deposits are to be kept in a bank account separate from the landlord's general funds.

Thomas took a new job in Iowa. He is buying his first home. He has qualified for an APR of 4.6%. He plans on making payments for the next 20 years. He anticipates that he can afford a payment of $550.00. How much of a mortgage will Thomas qualify for?

What are the typical sources of mortgages?

Provide the most common one-time or initial costs involved in buying a house.