Question 1

An appraisal is an estimate of what your home and property are worth.

Accepted Answer

A) True 
 B)False

Question 2

Suppose that you are at the end of your automobile lease. The leasing company has just informed you that the car's market value is greater than its residual value and they will be sending you a refund. What type of lease did you have?

Accepted Answer

A)  closed-end lease 
B)  open-end lease 
C)  walk-away lease 
D)  residual lease 
E)  none of the above 
A)  closed-end lease 
B)  open-end lease 
C)  walk-away lease 
D)  residual lease 
E)  none of the above

Question 3

The advantages of a fixed-rate mortgage over an ARM include

Accepted Answer

A)  no private mortgage insurance required. 
B)  fixed payments that are easier to budget for. 
C)  less worry about the loan reaching the rate and payment caps. 
D)  none of the above 
E)  both B and C 
A)  no private mortgage insurance required. 
B)  fixed payments that are easier to budget for. 
C)  less worry about the loan reaching the rate and payment caps. 
D)  none of the above 
E)  both B and C

Question 4

Jeremy does not like the idea of paying points. A point is actually

Accepted Answer

A)  one percent of the selling price of the house. 
B)  one percent of the amount financed with the mortgage. 
C)  one percent of the selling price minus the realtor's fee. 
D)  one percent of the taxable value of the house and property. 
E)  none of the above 
A)  one percent of the selling price of the house. 
B)  one percent of the amount financed with the mortgage. 
C)  one percent of the selling price minus the realtor's fee. 
D)  one percent of the taxable value of the house and property. 
E)  none of the above

Question 5

List the factors that go into a monthly lease payment and tell how the dollar value of a lease is calculated.

Accepted Answer

-the agreed-upon price
-any other up-fro

Question 6

Your ARM has a two year adjustment interval, 4% margin, 2% periodic rate cap and a 6% lifetime cap. This year the market interest index increased by 2.75%. What will happen to your APR on this loan?

Accepted Answer

A)  It will increase by 2% 
B)  It will increase by 2.75% 
C)  It will increase by 4% 
D)  It will increase by 6% 
A)  It will increase by 2% 
B)  It will increase by 2.75% 
C)  It will increase by 4% 
D)  It will increase by 6%

Question 7

A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

Accepted Answer

A) True 
 B)False

Question 8

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

Accepted Answer

A)  The dealer cost and dealer holdback for the automobile you are interested in. 
B)  The trade-in value on your current automobile. 
C)  The final price you will pay for the automobile at the dealership. 
D)  Only A and B are correct. 
E)  All of the above are correct. 
A)  The dealer cost and dealer holdback for the automobile you are interested in. 
B)  The trade-in value on your current automobile. 
C)  The final price you will pay for the automobile at the dealership. 
D)  Only A and B are correct. 
E)  All of the above are correct.

Question 9

Write a paragraph giving at least five important tips on buying a new car.

Accepted Answer

Find out the dealer's invoice price for

Question 10

What are the common options for housing?

Accepted Answer

-Purchase a home.
-B

Question 11

The safest place to get a mortgage is at your bank, credit union, or savings and loan institution.

Accepted Answer

A) True 
 B)False

Question 12

From a financial perspective, the decision of whether to rent or buy is tied to how long to plan to live in the home.

Accepted Answer

A) True 
 B)False

Question 13

Are there any advantages in government-backed loans? Any disadvantages?

Accepted Answer

Yes, there are three advantages.One, the

Question 14

If you have just been transferred to a new city and plan to live in your new location for many years, buying a house is generally a better option than leasing for the first year.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following factors plays a role in determining the monthly lease payment of a car?

Accepted Answer

A)  the agreed-upon price of the vehicle 
B)  the length of the lease 
C)  the capitalized cost based on your trade-in 
D)  the value of the vehicle at the end of the lease 
E)  All of the above. 
A)  the agreed-upon price of the vehicle 
B)  the length of the lease 
C)  the capitalized cost based on your trade-in 
D)  the value of the vehicle at the end of the lease 
E)  All of the above.

Question 16

A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage.

Accepted Answer

A) True 
 B)False

Question 17

If you are the type of person who wants complete control over the style and decoration of your home, then a condominium or cooperative would be an appropriate housing decision for you.

Accepted Answer

A) True 
 B)False

Question 18

Being able to move with minimum inconvenience is an appealing aspect of buying a home.

Accepted Answer

A) True 
 B)False

Question 19

Tran currently makes $4,500 per month in gross income. He has a student loan payment of $250 per month and a car loan of $450 per month. His credit card payments average $300 per month. What is the largest PITI he could qualify for with a reputable lender?

Accepted Answer

A)  $620 
B)  $900 
C)  $1,260 
D)  $1,620 
A)  $620 
B)  $900 
C)  $1,260 
D)  $1,620

Question 20

Leasing a car may make sense for some people but there are disadvantages to leasing. What are the disadvantages to leasing a car verses purchasing the car outright?

Accepted Answer

When you lease the car you never build e

An appraisal is an estimate of what your home and property are worth.

Suppose that you are at the end of your automobile lease. The leasing company has just informed you that the car's market value is greater than its residual value and they will be sending you a refund. What type of lease did you have?

The advantages of a fixed-rate mortgage over an ARM include

Jeremy does not like the idea of paying points. A point is actually

List the factors that go into a monthly lease payment and tell how the dollar value of a lease is calculated.

Your ARM has a two year adjustment interval, 4% margin, 2% periodic rate cap and a 6% lifetime cap. This year the market interest index increased by 2.75%. What will happen to your APR on this loan?

A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

Write a paragraph giving at least five important tips on buying a new car.

What are the common options for housing?

The safest place to get a mortgage is at your bank, credit union, or savings and loan institution.

From a financial perspective, the decision of whether to rent or buy is tied to how long to plan to live in the home.

Are there any advantages in government-backed loans? Any disadvantages?

If you have just been transferred to a new city and plan to live in your new location for many years, buying a house is generally a better option than leasing for the first year.

Which of the following factors plays a role in determining the monthly lease payment of a car?

A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage.

If you are the type of person who wants complete control over the style and decoration of your home, then a condominium or cooperative would be an appropriate housing decision for you.

Being able to move with minimum inconvenience is an appealing aspect of buying a home.

Tran currently makes $4,500 per month in gross income. He has a student loan payment of $250 per month and a car loan of $450 per month. His credit card payments average $300 per month. What is the largest PITI he could qualify for with a reputable lender?

Leasing a car may make sense for some people but there are disadvantages to leasing. What are the disadvantages to leasing a car verses purchasing the car outright?

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

An appraisal is an estimate of what your home and property are worth.

Suppose that you are at the end of your automobile lease. The leasing company has just informed you that the car's market value is greater than its residual value and they will be sending you a refund. What type of lease did you have?

The advantages of a fixed-rate mortgage over an ARM include

Jeremy does not like the idea of paying points. A point is actually

List the factors that go into a monthly lease payment and tell how the dollar value of a lease is calculated.

Your ARM has a two year adjustment interval, 4% margin, 2% periodic rate cap and a 6% lifetime cap. This year the market interest index increased by 2.75%. What will happen to your APR on this loan?

A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

Write a paragraph giving at least five important tips on buying a new car.

What are the common options for housing?

The safest place to get a mortgage is at your bank, credit union, or savings and loan institution.

From a financial perspective, the decision of whether to rent or buy is tied to how long to plan to live in the home.

Are there any advantages in government-backed loans? Any disadvantages?

If you have just been transferred to a new city and plan to live in your new location for many years, buying a house is generally a better option than leasing for the first year.

Which of the following factors plays a role in determining the monthly lease payment of a car?

A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage.

If you are the type of person who wants complete control over the style and decoration of your home, then a condominium or cooperative would be an appropriate housing decision for you.

Being able to move with minimum inconvenience is an appealing aspect of buying a home.

Tran currently makes $4,500 per month in gross income. He has a student loan payment of $250 per month and a car loan of $450 per month. His credit card payments average $300 per month. What is the largest PITI he could qualify for with a reputable lender?

Leasing a car may make sense for some people but there are disadvantages to leasing. What are the disadvantages to leasing a car verses purchasing the car outright?

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