Exam 8: The Home and Automobile Decision

Salvadore Dobraseri is a military veteran and has been told by a friend to check out a VA or FHA loan for the purchase of the home he and his wife are interested in.Why should he?

Give at least six tips on smart buying.

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

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

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

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?

The ________ mortgage sets the payments in advance in such a way that they rise steadily for 5 to 10 years,then level off to allow a person to buy a home earlier in life.

What are the basic financing options when considering a new vehicle?

It's advisable to always take the biggest loan that a lender will give you.

Buying a home generally isn't desirable if you don't intend to stay in it for more than two or three years.

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?

Bridgette Rojeau has found a beautiful late model used car on a dealer's lot.It is just what she has always wanted.Give her seven tips on buying this dream car.

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

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?

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)

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

Your friends just told you that they were denied a mortgage by their bank.The loan officer told them that they did not pass the 36 percent rule.They are confused and want you to explain what happened?

For most cars,the manufacturer's warranty extends through the first seven years of ownership or the first 70,000 miles,whichever comes first.

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. -August's gross monthly income is $4,600.If according to the rule of 36 he can afford a maximum PITI of $1,125,what must his monthly consumer credit debt be?

A subprime mortgage is a mortgage with an APR below the prime rate.