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. -In a similar geographic area,the cost of a [detached home | condo] will usually be lower.

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. -A real estate agent will typically be paid by the [buyer | seller] of the house.

Variable auto ownership costs are most dependent on:

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

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. -You made an $800 mortgage payment.The interest on the mortgage for this month was $850.You have just experienced [negative | positive] amortization.

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. -You made a $900 mortgage payment.The interest on the mortgage for this month was $850.You have just experienced [negative | positive] amortization.

Points paid to secure a mortgage to purchase a primary residence will generally be tax deductible as interest in the year they are paid.

_____ are ongoing costs of home ownership.

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 total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

Capitalized cost on an auto lease is similar to the interest rate on a loan.

To research used car prices,you can check one of the popular price guides including:

Automobiles tend to decrease in value over time.

Condominium and Townhome owners can deduct real estate taxes and mortgage interest on their federal income taxes but co-op owners cannot take these deductions.

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

_____ are tax deductible.

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. -It would make sense to purchase a vehicle at the end of a close-end lease period if the residual value in the lease agreement was [more | less] than the car's market value.

Negative amortization is possible with a fixed-rate mortgage.

When shopping for a lease,you want a: