Exam 5: Making Automobile and Housing Decisions

Dick and Jane have just purchased a house and are calculating how much money they will need when the closing day rolls around.The purchase price is $200,000.They will make a 20 percent down payment,and they must pay 2 points on the loan.Closing costs should be 3 percent of the purchase price.What is the total dollar amount they will need at closing? (Show all work.)

Fredrick purchased a property worth $150,000 on mortgage.He had paid $30,000 as a down payment on this property.However,because of a recent slump in the real estate prices,the property is worth only $110,000,forcing Fredrick to sell the property.Assuming that no mortgage payments have been made by Fredrick,this sale is termed a(an)_____.

The loss in the value of an automobile over time is called:

If the maximum loan-to-value ratio that a lender will accept on a house costing $100,000 is 90 percent,then the borrower must make:

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

_____ is a situation where homeowners owe more to the lenders than what their properties are worth.

The data in a multiple listing service (MLS):

The biggest fixed cost of owning a car is likely to be the ____________. ​

The market price of a house is $125,000,and the home buyer borrows $100,000.Two points are equal to $2,000.

_____ are loans offering low payments for the first few years,gradually increasing until year three or five,and then remaining fixed.

When you receive title to an individual unit and a joint ownership of any common areas and facilities,you have purchased a:

The price of the car you are leasing is called the:

Matt is considering the purchase of a condo on a mortgage.However,he is not sure of the amount of the mortgage he is eligible for.____________ will help him identify and correct any problems such as credit report errors that may arise on his application. ​

If the maximum loan-to-value ratio that a lender will accept on a house costing $100,000 is 80 percent,then the borrower must make a down payment of at least _____

Henry has $2,500 for a down payment and thinks he can afford monthly payments of $400.If he can finance a vehicle with an 8 percent,3-year loan from a local bank,what is the maximum amount Henry can spend on the car? (Round the answer to the nearest units place.)

_____ are the expenses that borrowers pay when a mortgage loan is closed and they receive title to the purchased property.

If you purchase a house worth $110,000 and make a 10 percent down payment,how much would 1 mortgage point cost at closing?

The purchase price of the house you are buying is $140,000.A loan-to-value ratio of 80 percent will require a down payment of ____________. ​

Jane and Smith are considering the purchase of a home in downtown Minneapolis.They approached Larson's Mortgagers Inc.to arrange for the financing needed for their home.This process of arranging with a mortgage lender in advance of buying a home is called _____.

Fees charged by lenders as a condition of a mortgage loan that raises the effective rate of interest are called: