Question 1

How can you benefit from following the smart buying steps?

Accepted Answer

A) Smart buying allows a higher standard of living because you make smarter purchases. 
B) Smart buying allows you to buy what you want when you want it. 
C) Smart buying helps you maintain your budget. 
D) Both A and C are correct. 
A) Smart buying allows a higher standard of living because you make smarter purchases. 
B) Smart buying allows you to buy what you want when you want it. 
C) Smart buying helps you maintain your budget. 
D) Both A and C are correct. D

Question 2

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

Accepted Answer

A) More expensive to purchase 
B) More expensive to operate and maintain 
C) Less freedom to make changes and less privacy 
D) No ownership of shares in the corporation 
A) More expensive to purchase 
B) More expensive to operate and maintain 
C) Less freedom to make changes and less privacy 
D) No ownership of shares in the corporation C

Question 3

Ben recently paid off his school loans and is looking to buy a home.He has qualified for an APR of 5.2% and plans on making payments for the next 15 years.He anticipates he can afford a monthly payment of $660.00.How much of a mortgage can Ben afford?

Accepted Answer

A) $60,000 
B) $82,371 
C) $87,440 
D) $91,000 
E) None of the above 
A) $60,000 
B) $82,371 
C) $87,440 
D) $91,000 
E) None of the above B

Question 4

Explain why the 28/36 percent rule is so important to understand.

Accepted Answer

A reputable lender wants to make sure th

Question 5

When is it advantageous to rent instead of buy?

Accepted Answer

Renting is a good plan when you plan to

Question 6

What are the typical sources of mortgages?

Accepted Answer

The list includes commercial b

Question 7

Jackie is considering obtaining a mortgage of $333,000.A lower APR is available,but she must pay 1.75 points to buy the rate down.How much must Jackie pay in dollars?

Accepted Answer

A) $1,357 
B) $3,300 
C) $5,828 
D) $8,333 
A) $1,357 
B) $3,300 
C) $5,828 
D) $8,333

Question 8

In auto sales,a ________ is an amount of money,generally in the 2% to 3% range,that the manufacturer gives the dealer for selling an automobile.

Accepted Answer

A) holdback 
B) rebate 
C) kickback 
D) markup 
E) none of the above 
A) holdback 
B) rebate 
C) kickback 
D) markup 
E) none of the above

Question 9

How does smart buying improve your standard of living?

Accepted Answer

Following smart buying prevents you from

Question 10

When you decide to buy a home,which of these questions should be answered?

Accepted Answer

A) What is the maximum amount that a bank will lend me? 
B) Should I borrow up to this maximum? 
C) How big of a down payment can I afford? 
D) All of the above 
A) What is the maximum amount that a bank will lend me? 
B) Should I borrow up to this maximum? 
C) How big of a down payment can I afford? 
D) All of the above

Question 11

Katie is taking out a 15 year 4.2% APR mortgage with monthly payments to by a second home.Katie estimates she can make a $2,500 monthly payment.How much mortgage will Katie qualify for?

Accepted Answer

A) $405,468.48 
B) $244,622.28 
C) $322,622.69 
D) $333,444.33 
A) $405,468.48 
B) $244,622.28 
C) $322,622.69 
D) $333,444.33

Question 12

A mortgage with an APR higher than normal is a subprime mortgage.

Accepted Answer

A) True 
 B)False

Question 13

What are some factors that determine whether a homeowner should refinance?

Accepted Answer

The typical rule of thumb is to refinanc

Question 14

Subprime,or nonprime,mortgages are taken out by borrowers with low credit scores,________ of these mortgages carry adjustable rates.

Accepted Answer

A) 10 percent 
B) 30 percent 
C) 50 percent 
D) 80 percent 
A) 10 percent 
B) 30 percent 
C) 50 percent 
D) 80 percent

Question 15

According to the 28 percent rule,Natasha can afford a maximum PITI of $1,400.What is her gross monthly income?

Accepted Answer

A) $2,800 
B) $3,888 
C) $5,000 
D) $5,600 
E) $39,200 
A) $2,800 
B) $3,888 
C) $5,000 
D) $5,600 
E) $39,200

Question 16

You can only get an ARM loan from a predatory lender.

Accepted Answer

A) True 
 B)False

Question 17

When following smart buying to purchase a home you should

Accepted Answer

A) create a budget and determine what PITI you can afford. 
B) check out your FICO score and get a copy of your credit report. 
C) look at your overall financial plan to determine how big a loan you should take on. 
D) determine how much of a down payment you can afford. 
E) all of the above. 
A) create a budget and determine what PITI you can afford. 
B) check out your FICO score and get a copy of your credit report. 
C) look at your overall financial plan to determine how big a loan you should take on. 
D) determine how much of a down payment you can afford. 
E) all of the above.

Question 18

A 48-month lease on a car with a 36-month manufacturer's warranty is a gamble.

Accepted Answer

A) True 
 B)False

Question 19

As a rule of thumb,your PITI costs shouldn't exceed ________ of your pretax monthly income.

Accepted Answer

A) 8 percent 
B) 18 percent 
C) 28 percent 
D) 48 percent 
A) 8 percent 
B) 18 percent 
C) 28 percent 
D) 48 percent

Question 20

The ________ mortgage sets the payments in advance in such a way that they rise steadily for 5 to 10 years,then level off to allow a person to buy a home earlier in life.

Accepted Answer

A) balloon payment 
B) growing equity 
C) shared appreciation 
D) graduated payment 
E) conventional 
A) balloon payment 
B) growing equity 
C) shared appreciation 
D) graduated payment 
E) conventional

How can you benefit from following the smart buying steps?

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

Ben recently paid off his school loans and is looking to buy a home.He has qualified for an APR of 5.2% and plans on making payments for the next 15 years.He anticipates he can afford a monthly payment of $660.00.How much of a mortgage can Ben afford?

Explain why the 28/36 percent rule is so important to understand.

When is it advantageous to rent instead of buy?

What are the typical sources of mortgages?

Jackie is considering obtaining a mortgage of $333,000.A lower APR is available,but she must pay 1.75 points to buy the rate down.How much must Jackie pay in dollars?

In auto sales,a ________ is an amount of money,generally in the 2% to 3% range,that the manufacturer gives the dealer for selling an automobile.

How does smart buying improve your standard of living?

When you decide to buy a home,which of these questions should be answered?

Katie is taking out a 15 year 4.2% APR mortgage with monthly payments to by a second home.Katie estimates she can make a $2,500 monthly payment.How much mortgage will Katie qualify for?

A mortgage with an APR higher than normal is a subprime mortgage.

What are some factors that determine whether a homeowner should refinance?

Subprime,or nonprime,mortgages are taken out by borrowers with low credit scores,________ of these mortgages carry adjustable rates.

According to the 28 percent rule,Natasha can afford a maximum PITI of $1,400.What is her gross monthly income?

You can only get an ARM loan from a predatory lender.

When following smart buying to purchase a home you should

A 48-month lease on a car with a 36-month manufacturer's warranty is a gamble.

As a rule of thumb,your PITI costs shouldn't exceed ________ of your pretax monthly income.

The ________ mortgage sets the payments in advance in such a way that they rise steadily for 5 to 10 years,then level off to allow a person to buy a home earlier in life.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 8: The Home and Automobile Decision

How can you benefit from following the smart buying steps?

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

Ben recently paid off his school loans and is looking to buy a home.He has qualified for an APR of 5.2% and plans on making payments for the next 15 years.He anticipates he can afford a monthly payment of $660.00.How much of a mortgage can Ben afford?

Explain why the 28/36 percent rule is so important to understand.

When is it advantageous to rent instead of buy?

What are the typical sources of mortgages?

Jackie is considering obtaining a mortgage of $333,000.A lower APR is available,but she must pay 1.75 points to buy the rate down.How much must Jackie pay in dollars?

In auto sales,a ________ is an amount of money,generally in the 2% to 3% range,that the manufacturer gives the dealer for selling an automobile.

How does smart buying improve your standard of living?

When you decide to buy a home,which of these questions should be answered?

Katie is taking out a 15 year 4.2% APR mortgage with monthly payments to by a second home.Katie estimates she can make a $2,500 monthly payment.How much mortgage will Katie qualify for?

A mortgage with an APR higher than normal is a subprime mortgage.

What are some factors that determine whether a homeowner should refinance?

Subprime,or nonprime,mortgages are taken out by borrowers with low credit scores,________ of these mortgages carry adjustable rates.

According to the 28 percent rule,Natasha can afford a maximum PITI of $1,400.What is her gross monthly income?

You can only get an ARM loan from a predatory lender.

When following smart buying to purchase a home you should

A 48-month lease on a car with a 36-month manufacturer's warranty is a gamble.

As a rule of thumb,your PITI costs shouldn't exceed ________ of your pretax monthly income.

The ________ mortgage sets the payments in advance in such a way that they rise steadily for 5 to 10 years,then level off to allow a person to buy a home earlier in life.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters