Exam 8: The Home and Automobile Decision

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 down payment is the initial buyer's equity in the asset being purchased.

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

According to the Keown Book,what are some tips on making a complaint to a company?

Subprime mortgages are illegal.

Why is it that you should not tell the salesperson what you want your monthly payment to be before you negotiate the final price on the car?

All of the following are advantages of renting versus buying a home except

How much would the monthly payment be on a mortgage of $250,000 for 30 years at a rate of 6.0%?

A title search fee is paid to an attorney or title company for searching ownership records to make sure the person selling you the property really owns it.

A situation in which the monthly payments are less than the interest that is due on the loan,and the unpaid interest is thus added to the principal is called

A co-op is an apartment building owned by a corporation where residents of the building are stock holders.When you buy into a co-op,you buy shares that reflect the dollar value of your space.The larger and more desirable the space you want requires purchase of more shares.

Describe four ways to come up with the down payment money for buying a house.

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

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

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

Because a co-op is technically not a "home" it does not charge a homeowner's fee.

List three pros of an assumable loan.

With a(n)________ mortgage,you make relatively small monthly payments for several years,after which the loan comes due and you must pay it off in one large payment.

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.