Exam 10: Purchasing and Financing a Home

Your monthly payments for a house are likely to be as high as rent when you factor in mortgage payments,property taxes,homeowner's insurance,and home repairs.

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

When considering "how much home" you can afford,you should consider all of the following,except

A mortgage where the interest owed changes in response to movements in a specific market-determined interest rate is called a(n)

While interest rates have been historically low for the past 8 years,rates are expected to begin to increase over the coming couple of years.Given the interest rate environment,which type of mortgage would be best for your new home?

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

On a fixed rate mortgage,the monthly

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

The purchase of a home represents a potential liability if you need to move quickly and the home does not appreciate rapidly in value.

You should consider the school system near a home only if you have or are likely to have school-aged children.

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

Since real estate brokers are licensed and bonded,they are required to give you unbiased information about real estate purchases.

The schedule that discloses the monthly payment that you will make,based on a specific mortgage amount,a fixed interest rate level,and maturity is called a(n)

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

Purchasing a condominium is an alternative to purchasing a detached house but also requires careful consideration of selection criteria.

A good way to estimate the market value of a home is to multiply the number of square feet by the average price per square foot of similar homes in the area.

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

When selling a home,which of the following costs will you incur?

Adjustable-rate mortgages are riskier than fixed-rate mortgages.However,they may be useful when the interest rate is expected to ________ in the future.

In comparing a 15- and 30-year mortgage,over the life of the loan you will have smaller payments but pay more interest with the 15-year mortgage.