Exam 5: Making Automobile and Housing Decisions

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -With a(n)[closed-end | open-end] lease,one owes more at the end of the lease if the car is worth less than its projected value at the end of the lease.

A lender will usually require a down payment of ____ or more for you to avoid having to pay private mortgage insurance (PMI).

Graduated payment mortgages and growing equity mortgages are both examples of adjustable-rate mortgages.

A declining rent ratio indicates

Housing prices vary widely from on part of the country to another.

A short sale does not affect a distressed homeowner's credit score as much as a foreclosure.

The market price of a house is $125,000 and the homebuyer will borrow $100,000.Two points will equal $2,500.

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%,3-year loan,what is the maximum amount Henry can spend on the car?

The interest rate charged on adjustable-rate mortgages will change from time to time based on a specified index.

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

When you lease your apartment from the corporation that owns the building and your lease is an ownership share,your apartment is

An FHA loan is insured by the federal government.

The capital cost reduction on a vehicle lease is

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The interest rate on an ARM can be increased [automatically every year | only when a designated index increases].

____ is a reason for owning your own home.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The first major expenditure most people make is to buy a [house | car].

The FHA ____ high loan-to-value ratio mortgages.

Variable auto ownership costs are most dependent on

Commercial banks are an important source of both mortgage loans and interim construction loans.

Which of the following is not associated with buying a home with a lower-than-typical down payment?