Exam 8: The Home and Automobile Decision

Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. -According to the 28 percent rule,Natasha can afford a maximum PITI of $1,400.What is her gross monthly income?

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

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

Explain the recurring costs of home ownership and why you need to budget for them.

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

If you are considering purchasing a used car you should

An automobile warranty provides coverage for the basic parts against manufacturer's defects for a set period of time or miles.

Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. -Assuming a PITI of approximately $1,300 for the townhouse,will they be approved for a mortgage?

A 48-month lease on a car with a 36-month manufacturer's warranty is a gamble.

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?

A mortgage broker earns income based on fees or commissions on the loans they broker.

The Internet can help you research neighborhoods and find a community in which you'd like to live.

The two most common types of two-step mortgages are the

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

An assessment is a voluntary contribution by the condominium owners.

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 assumable loan is one that can be transferred to a new buyer who simply takes over the loan obligations.

When following smart buying to purchase a home you should

The majority of people never live in rental housing.

If you are not yet committed to living in a particular geographic region,rental housing is a good option for you.