Exam 5: Making Automobile and Housing Decisions

Phil and Christina are recently married and are unsure of where they will be relocated after Christina finishes her residency in 9 months.Based on this information,which of the following housing recommendations would be most appropriate for them?

Adjustable-rate mortgages with monthly payment caps can lead to negative amortization.

If you purchase a house worth $110,000 and make a 10% down payment,how much would 1 point cost at closing?

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 monthly payment is lower in a 6-year auto loan than on a 3-year auto loan.

_____ is a fixed auto ownership cost.

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

Adjustable-rate mortgages with interest rate caps can lead to negative amortization.

The largest single investment you will undertake in your lifetime will probably be the purchase of an automobile.

The _____ would be included in a rental contract or lease agreement.

An inflation hedge is an asset that increases in value at a rate equal to or greater than the rate of inflation.

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

The highest average cost housing to purchase would be a:

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 Real Estate Settlement Procedures Act governs [mortgage rates | mortgage closings].

A significant legal difference between a cooperative building and a condominium is that in a condominium,an owner normally holds a title to an individual living unit and joint ownership of the common areas,while in a cooperative building,each tenant owns a share of the nonprofit corporation that owns the building.

At the end of the lease period,you are may not be required to:

The difference between the market value of your home and the balance of the mortgage is your equity in the property.

As a homeowner,the federal government may allow you to deduct interest expenses and taxes paid on the property.

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 purchase price of the house you are buying is $140,000.A loan-to-value ratio of 80% will require a down payment of [$34,000 | $28,000].

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