Exam 10: Purchasing and Financing a Home

Of the following fees involved in the purchase of a house,which is usually not borne by the purchaser?

Which of the following would not be included in closing costs?

On the purchase of a home,one "point" is equal to

Proximity to schools can increase home values,while increased distance from schools often lowers home values.

If you anticipate your income rising slowly but steadily over the years,you may want to consider a

The initial rate on an ARM will typically be

Refinancing a home is usually worthwhile when

Which of the following is most important when selecting a home?

If a person chooses to purchase a more expensive home,he or she may have to cut expenses in other areas such as entertainment.

Homeowner's Association monthly dues generally include water,sewer,garbage,and maintenance or other amenities such as a pool,clubhouse,and a tennis court.

There are a number of different mortgage types to choose from in financing a home or condominium,such as a fixed or variable loans for 15 or 30 years.

Which of the following is not true concerning adjustable rate mortgages (ARMs)?

The first step in the home-buying process should be to

Over the life of a mortgage,the payment to principal ________ and the portion to interest expense ________.

The size of the monthly payment on a mortgage is not dependent on the

The schedule that shows your monthly home payment and the amounts applied to principle and interest each month is called a depreciation table.

Owning a home entails all of the following expenses except

When homeowners expect that interest rates will rise,they prefer

A balloon payment mortgage starts with higher payments,which decrease as the mortgage is paid off.

Fixed rate mortgages usually have