Question 1

When is it advantageous to rent instead of buy?

Accepted Answer

Renting is a good plan when you plan to

Question 2

The best time to get an ARM is when the market rates of interest are high.

Accepted Answer

A) True 
 B)False

Question 3

When planning your budget to determine how much your home will cost you every month, which of the following should you include in your planning?

Accepted Answer

A)  closing costs 
B)  PITI 
C)  discount points 
D)  all of the above. 
A)  closing costs 
B)  PITI 
C)  discount points 
D)  all of the above.

Question 4

Jessica is buying her first new home. The home has been appraised at $330,000. For Jessica to NOT have to pay private mortgage insurance she must come up with a downpayment of ________.

Accepted Answer

A)  $33,000 
B)  $66,600 
C)  $20,000 
D)  $80,000 
A)  $33,000 
B)  $66,600 
C)  $20,000 
D)  $80,000

Question 5

Kathy is buying her first home. She is financing a total of $185,000 at an APR of 5% for 25 years. How much are her monthly payments?

Accepted Answer

A)  $952.33 
B)  $1,081.49 
C)  $1,441.23 
D)  $1,664.85 
A)  $952.33 
B)  $1,081.49 
C)  $1,441.23 
D)  $1,664.85

Question 6

You are considering obtaining a mortgage of $220,000. A lower APR is available, but you must pay 2 points to buy the rate down. How much must you pay in dollars?

Accepted Answer

A)  $1,100 
B)  $2,200 
C)  $3,300 
D)  $4,400 
E)  $6,600 
A)  $1,100 
B)  $2,200 
C)  $3,300 
D)  $4,400 
E)  $6,600

Question 7

An assessment is a voluntary contribution by the condominium owners.

Accepted Answer

A) True 
 B)False

Question 8

A mortgage with a 20% downpayment will have a higher APR than one with less than 20% down.

Accepted Answer

A) True 
 B)False

Question 9

Tell about the advantages of a shorter-term mortgage over a 30-year one.

Accepted Answer

A lower interest rate is common with a s

Question 10

Congratulations! You have just agreed on the final price for your new car and now you have to finance the purchase. The negotiated price of the new car is $18,500 and you will receive $5,500 for your trade-in. What will your monthly payment be on a 48-month loan with a 7% APR?

Accepted Answer

A)  $281.25 
B)  $311.30 
C)  $385.42 
D)  $443.01 
A)  $281.25 
B)  $311.30 
C)  $385.42 
D)  $443.01

Question 11

What is not a benefit normally associated with home ownership?

Accepted Answer

A)  Tax advantages for those who qualify. 
B)  Flexibility to respond to employment opportunities. 
C)  Ability to build equity and net worth. 
D)  A potential source of collateral for future loans. 
A)  Tax advantages for those who qualify. 
B)  Flexibility to respond to employment opportunities. 
C)  Ability to build equity and net worth. 
D)  A potential source of collateral for future loans.

Question 12

What are the main financial questions you should ask yourself prior to purchasing a home?

Accepted Answer

1.What is the maximum amount the lender

Question 13

Stretching a car loan from 48 months to 60 months means the car will end up resulting in a smaller monthly payment.

Accepted Answer

A) True 
 B)False

Question 14

You, not your lender, should determine the amount you want to borrow for a mortgage.

Accepted Answer

A) True 
 B)False

Question 15

Billy has chosen to purchase a new vehicle. The vehicle costs $15,000. His APR is 10% and he will be financing the vehicle for 36 months. How much will Billy pay each month for his new vehicle?

Accepted Answer

A)  $484.01 
B)  $296.35 
C)  $312.66 
D)  $405.29 
E)  $496.33 
A)  $484.01 
B)  $296.35 
C)  $312.66 
D)  $405.29 
E)  $496.33

Question 16

Someone who plans on selling his or her home within the next 5 years should get a fixed-rate mortgage.

Accepted Answer

A) True 
 B)False

Question 17

From a borrower's perspective, you're better off with an ARM if interest rates rise.

Accepted Answer

A) True 
 B)False

Question 18

A ________ typically originates mortgage loans with funds from other investors, such as pension funds.

Accepted Answer

A)  mortgage banker 
B)  mortgage broker 
C)  mortgagee 
D)  mortgagor 
E)  none of the above 
A)  mortgage banker 
B)  mortgage broker 
C)  mortgagee 
D)  mortgagor 
E)  none of the above

Question 19

Candice is purchasing a new Jeep. She has the price negotiated down to what she thought was the lowest possible price until she heard that her Jeep has a holdback amount of 3%. Is it fair for Candice to ask the dealership to take the holdback amount off her final sales price?

Accepted Answer

A)  Absolutely, this would decrease the mark up price of the Jeep and save Candice additional dollars. 
B)  No. The dealership would most likely lose money on the sale. 
A)  Absolutely, this would decrease the mark up price of the Jeep and save Candice additional dollars. 
B)  No. The dealership would most likely lose money on the sale.

Question 20

Most predatory lenders offer prepayment privileges with their mortgages.

Accepted Answer

A) True 
 B)False

When is it advantageous to rent instead of buy?

The best time to get an ARM is when the market rates of interest are high.

When planning your budget to determine how much your home will cost you every month, which of the following should you include in your planning?

Jessica is buying her first new home. The home has been appraised at $330,000. For Jessica to NOT have to pay private mortgage insurance she must come up with a downpayment of ________.

Kathy is buying her first home. She is financing a total of $185,000 at an APR of 5% for 25 years. How much are her monthly payments?

You are considering obtaining a mortgage of $220,000. A lower APR is available, but you must pay 2 points to buy the rate down. How much must you pay in dollars?

An assessment is a voluntary contribution by the condominium owners.

A mortgage with a 20% downpayment will have a higher APR than one with less than 20% down.

Tell about the advantages of a shorter-term mortgage over a 30-year one.

Congratulations! You have just agreed on the final price for your new car and now you have to finance the purchase. The negotiated price of the new car is $18,500 and you will receive $5,500 for your trade-in. What will your monthly payment be on a 48-month loan with a 7% APR?

What is not a benefit normally associated with home ownership?

What are the main financial questions you should ask yourself prior to purchasing a home?

Stretching a car loan from 48 months to 60 months means the car will end up resulting in a smaller monthly payment.

You, not your lender, should determine the amount you want to borrow for a mortgage.

Billy has chosen to purchase a new vehicle. The vehicle costs $15,000. His APR is 10% and he will be financing the vehicle for 36 months. How much will Billy pay each month for his new vehicle?

Someone who plans on selling his or her home within the next 5 years should get a fixed-rate mortgage.

From a borrower's perspective, you're better off with an ARM if interest rates rise.

A ________ typically originates mortgage loans with funds from other investors, such as pension funds.

Candice is purchasing a new Jeep. She has the price negotiated down to what she thought was the lowest possible price until she heard that her Jeep has a holdback amount of 3%. Is it fair for Candice to ask the dealership to take the holdback amount off her final sales price?

Most predatory lenders offer prepayment privileges with their mortgages.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 8: The Home and Automobile Decision

When is it advantageous to rent instead of buy?

The best time to get an ARM is when the market rates of interest are high.

When planning your budget to determine how much your home will cost you every month, which of the following should you include in your planning?

Jessica is buying her first new home. The home has been appraised at $330,000. For Jessica to NOT have to pay private mortgage insurance she must come up with a downpayment of ________.

Kathy is buying her first home. She is financing a total of $185,000 at an APR of 5% for 25 years. How much are her monthly payments?

You are considering obtaining a mortgage of $220,000. A lower APR is available, but you must pay 2 points to buy the rate down. How much must you pay in dollars?

An assessment is a voluntary contribution by the condominium owners.

A mortgage with a 20% downpayment will have a higher APR than one with less than 20% down.

Tell about the advantages of a shorter-term mortgage over a 30-year one.

Congratulations! You have just agreed on the final price for your new car and now you have to finance the purchase. The negotiated price of the new car is $18,500 and you will receive $5,500 for your trade-in. What will your monthly payment be on a 48-month loan with a 7% APR?

What is not a benefit normally associated with home ownership?

What are the main financial questions you should ask yourself prior to purchasing a home?

Stretching a car loan from 48 months to 60 months means the car will end up resulting in a smaller monthly payment.

You, not your lender, should determine the amount you want to borrow for a mortgage.

Billy has chosen to purchase a new vehicle. The vehicle costs $15,000. His APR is 10% and he will be financing the vehicle for 36 months. How much will Billy pay each month for his new vehicle?

Someone who plans on selling his or her home within the next 5 years should get a fixed-rate mortgage.

From a borrower's perspective, you're better off with an ARM if interest rates rise.

A ________ typically originates mortgage loans with funds from other investors, such as pension funds.

Candice is purchasing a new Jeep. She has the price negotiated down to what she thought was the lowest possible price until she heard that her Jeep has a holdback amount of 3%. Is it fair for Candice to ask the dealership to take the holdback amount off her final sales price?

Most predatory lenders offer prepayment privileges with their mortgages.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters