Question 1

The monthly payments on a 36-month lease on a car will often be smaller than the monthly payments on a 36-month loan to purchase the car.

Accepted Answer

A) True 
 B)False

Question 2

PITI stands for the total of your monthly

Accepted Answer

A) principal,income,taxes,and insurance. 
B) principal,interest,taxes,and insurance. 
C) principal,interest,taxes,and income. 
D) premiums,interest,taxes,and insurance. 
A) principal,income,taxes,and insurance. 
B) principal,interest,taxes,and insurance. 
C) principal,interest,taxes,and income. 
D) premiums,interest,taxes,and insurance.

Question 3

You have an annual gross income of $36,000.Using the 28/36 rule for maximum mortgage payment (PITI)estimation,what is your maximum PITI payment using your monthly gross income as a guide (28%)?

Accepted Answer

A) $840 
B) $1,080 
C) $680 
D) $640 
E) $880 
A) $840 
B) $1,080 
C) $680 
D) $640 
E) $880

Question 4

Lexi wants to buy a Tesla Model S .The car will cost $68,000 and she has $20,000 as a down payment.If she will finance the rest with a 4 year 6% APR loan with monthly payments,how much will her monthly payments be?

Accepted Answer

A) $1,460.25 
B) $1,127.28 
C) $1,362.13 
D) $892.43 
A) $1,460.25 
B) $1,127.28 
C) $1,362.13 
D) $892.43

Question 5

An adjustable rate mortgage (ARM)is always a wise financial decision for young consumers because their incomes will be adjusting as well.

Accepted Answer

A) True 
 B)False

Question 6

A co-op would be a wise choice for a consumer who wishes to pay no property taxes.

Accepted Answer

A) True 
 B)False

Question 7

What are the main financial questions you should ask yourself prior to purchasing a home?

Accepted Answer

1.What is the maximum amount the lender

Question 8

Jordan's gross monthly salary is $6,000.If according to the rule of 36 she can afford a maximum PITI of $1,550,what must her consumer credit debt be?

Accepted Answer

A) $130 
B) $550 
C) $610 
D) $250 
A) $130 
B) $550 
C) $610 
D) $250

Question 9

Private mortgage insurance typically is not needed with a down payment of 20% or larger.Why?

Accepted Answer

A) Not true,all mortgage loans require PMI. 
B) Buyers who have large down payments don't choose the extra insurance. 
C) Buyers who invest large down payments are more motivated to make their mortgage payments. 
D) All of the above 
E) None of the above 
A) Not true,all mortgage loans require PMI. 
B) Buyers who have large down payments don't choose the extra insurance. 
C) Buyers who invest large down payments are more motivated to make their mortgage payments. 
D) All of the above 
E) None of the above

Question 10

If you are considering purchasing a used car you should

Accepted Answer

A) do some research so you'll know a fair price for the vehicle you're looking for. 
B) ask questions about the mechanical history of the car,including whether it has been in any accidents. 
C) have the car inspected by a mechanic before you purchase it. 
D) all of the above 
A) do some research so you'll know a fair price for the vehicle you're looking for. 
B) ask questions about the mechanical history of the car,including whether it has been in any accidents. 
C) have the car inspected by a mechanic before you purchase it. 
D) all of the above

Question 11

A deposit included with an offer to buy that assures the seller that the buyer is serious about buying the house is called

Accepted Answer

A) assurance deposit. 
B) buyer's assurance. 
C) home deposit. 
D) earnest money. 
E) none of the above. 
A) assurance deposit. 
B) buyer's assurance. 
C) home deposit. 
D) earnest money. 
E) none of the above.

Question 12

From a borrower's perspective,you're better off with an ARM if interest rates rise.

Accepted Answer

A) True 
 B)False

Question 13

A down payment is the initial buyer's equity in the asset being purchased.

Accepted Answer

A) True 
 B)False

Question 14

The majority of people never live in rental housing.

Accepted Answer

A) True 
 B)False

Question 15

Being able to move with minimum inconvenience is an appealing aspect of buying a home.

Accepted Answer

A) True 
 B)False

Question 16

Thomas took a new job in Iowa.He is buying his first home.He has qualified for an APR of 4.6%.He plans on making payments for the next 20 years.He anticipates that he can afford a payment of $550.00.How much of a mortgage will Thomas qualify for?

Accepted Answer

A) $56,990 
B) $75,210 
C) $86,199 
D) $110,224 
A) $56,990 
B) $75,210 
C) $86,199 
D) $110,224

Question 17

Special assessments are fees that can be charged to cooperative shareholders and condominium owners to cover large maintenance and repair items.

Accepted Answer

A) True 
 B)False

Question 18

A loan origination fee is a fee paid to the lender,generally in the $1,200 to $1,300 range,and covers some of their costs of processing and finalizing the loan.

Accepted Answer

A) True 
 B)False

Question 19

Explain the recurring costs of home ownership and why you need to budget for them.

Accepted Answer

Making sure that you can comfortably aff

Question 20

The advantages of a fixed-rate mortgage over an ARM include

Accepted Answer

A) no private mortgage insurance required. 
B) fixed payments that are easier to budget for. 
C) less worry about the loan reaching the rate and payment caps. 
D) none of the above. 
E) both B and C. 
A) no private mortgage insurance required. 
B) fixed payments that are easier to budget for. 
C) less worry about the loan reaching the rate and payment caps. 
D) none of the above. 
E) both B and C.

The monthly payments on a 36-month lease on a car will often be smaller than the monthly payments on a 36-month loan to purchase the car.

PITI stands for the total of your monthly

You have an annual gross income of $36,000.Using the 28/36 rule for maximum mortgage payment (PITI)estimation,what is your maximum PITI payment using your monthly gross income as a guide (28%)?

Lexi wants to buy a Tesla Model S .The car will cost $68,000 and she has $20,000 as a down payment.If she will finance the rest with a 4 year 6% APR loan with monthly payments,how much will her monthly payments be?

An adjustable rate mortgage (ARM)is always a wise financial decision for young consumers because their incomes will be adjusting as well.

A co-op would be a wise choice for a consumer who wishes to pay no property taxes.

What are the main financial questions you should ask yourself prior to purchasing a home?

Jordan's gross monthly salary is $6,000.If according to the rule of 36 she can afford a maximum PITI of $1,550,what must her consumer credit debt be?

Private mortgage insurance typically is not needed with a down payment of 20% or larger.Why?

If you are considering purchasing a used car you should

A deposit included with an offer to buy that assures the seller that the buyer is serious about buying the house is called

From a borrower's perspective,you're better off with an ARM if interest rates rise.

A down payment is the initial buyer's equity in the asset being purchased.

The majority of people never live in rental housing.

Being able to move with minimum inconvenience is an appealing aspect of buying a home.

Thomas took a new job in Iowa.He is buying his first home.He has qualified for an APR of 4.6%.He plans on making payments for the next 20 years.He anticipates that he can afford a payment of $550.00.How much of a mortgage will Thomas qualify for?

Special assessments are fees that can be charged to cooperative shareholders and condominium owners to cover large maintenance and repair items.

A loan origination fee is a fee paid to the lender,generally in the $1,200 to $1,300 range,and covers some of their costs of processing and finalizing the loan.

Explain the recurring costs of home ownership and why you need to budget for them.

The advantages of a fixed-rate mortgage over an ARM include

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

The monthly payments on a 36-month lease on a car will often be smaller than the monthly payments on a 36-month loan to purchase the car.

PITI stands for the total of your monthly

You have an annual gross income of $36,000.Using the 28/36 rule for maximum mortgage payment (PITI)estimation,what is your maximum PITI payment using your monthly gross income as a guide (28%)?

Lexi wants to buy a Tesla Model S .The car will cost $68,000 and she has $20,000 as a down payment.If she will finance the rest with a 4 year 6% APR loan with monthly payments,how much will her monthly payments be?

An adjustable rate mortgage (ARM)is always a wise financial decision for young consumers because their incomes will be adjusting as well.

A co-op would be a wise choice for a consumer who wishes to pay no property taxes.

What are the main financial questions you should ask yourself prior to purchasing a home?

Jordan's gross monthly salary is $6,000.If according to the rule of 36 she can afford a maximum PITI of $1,550,what must her consumer credit debt be?

Private mortgage insurance typically is not needed with a down payment of 20% or larger.Why?

If you are considering purchasing a used car you should

A deposit included with an offer to buy that assures the seller that the buyer is serious about buying the house is called

From a borrower's perspective,you're better off with an ARM if interest rates rise.

A down payment is the initial buyer's equity in the asset being purchased.

The majority of people never live in rental housing.

Being able to move with minimum inconvenience is an appealing aspect of buying a home.

Thomas took a new job in Iowa.He is buying his first home.He has qualified for an APR of 4.6%.He plans on making payments for the next 20 years.He anticipates that he can afford a payment of $550.00.How much of a mortgage will Thomas qualify for?

Special assessments are fees that can be charged to cooperative shareholders and condominium owners to cover large maintenance and repair items.

A loan origination fee is a fee paid to the lender,generally in the $1,200 to $1,300 range,and covers some of their costs of processing and finalizing the loan.

Explain the recurring costs of home ownership and why you need to budget for them.

The advantages of a fixed-rate mortgage over an ARM include

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