Exam 10: Purchasing and Financing a Home

Which of the following costs associated with home ownership is hardest to budget?

The interest rate on an ARM may be adjusted

Your home value is likely to be higher with all of the following except

In negotiating for the purchase of a home,which of the following may not be included?

For a long-term home loan,such as 30 years,the amount of principle you pay on your loan during the first few years is quite small.

The type of mortgage that is usually the shortest term and will require further action at the end of it is a(n)

If you wish to keep your monthly payments as low and predictable as you can,you should use a

When obtaining a mortgage you should

Most individuals pay for a home with a down payment of 5% or less and then obtain a mortgage to finance the rest.

Describe how a mortgage and other related expenses affect a personal budget,income statement,and balance sheet.

Since most of the problems have already been fixed,older homes usually have lower maintenance expense than newer homes.

A market analysis is not

Which of the following would you not factor into a decision to buy or rent a house?

Before you buy a house,you should conduct a(n)________ to determine if the price is comparable to similar houses in the area.

An advantage of using online realtor services is that

If you obtain an FHA or VA loan you will make additional payments each month to cover your home insurance and property taxes that will be placed in an account called a(n)

If a current mortgage payment of $792 per month can be reduced to $578 per month by refinancing,how many months would you need to remain in the house to recoup refinancing charges of $3,784? (Round up to the nearest month.)

The specific location of your home can influence the amount of property taxes and insurance you will pay.

You are considering the purchase of a 2,300 square foot house that is being offered for $238,500.After researching recent home sales in the area,you find three that are comparable.The first was a 2,500 square foot home that sold for $225,000,the second was a 2,200 square foot home that sold for $200,000 and the third was a 2,000 square foot home that sold for $178,000.Based on your analysis,what would be a reasonable offer on the house? (Round all computations to the nearest dollar.) (a)$210,000 (b)$207,000 (c)$205,000 (d)$201,000

If a homebuyer shops around,she/he can probably avoid which of the following fees?