Question 1

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

Accepted Answer

A) The dealer cost and dealer holdback for the automobile you are interested in. 
B) The trade-in value on your current automobile. 
C) The final price you will pay for the automobile at the dealership. 
D) Only A and B are correct. 
E) All of the above are correct. 
A) The dealer cost and dealer holdback for the automobile you are interested in. 
B) The trade-in value on your current automobile. 
C) The final price you will pay for the automobile at the dealership. 
D) Only A and B are correct. 
E) All of the above are correct.

Question 2

A mortgage broker earns income based on fees or commissions on the loans they broker.

Accepted Answer

A) True 
 B)False

Question 3

Congratulations! You have just agreed on the final price for your new car and now you have to finance the purchase.The negotiated price of the new car is $18,500 and you will receive $5,500 for your trade-in.What will your monthly payment be on a 48-month loan with a 7% APR?

Accepted Answer

A) $281.25 
B) $311.30 
C) $385.42 
D) $443.01 
A) $281.25 
B) $311.30 
C) $385.42 
D) $443.01

Question 4

The best time to get an ARM is when the market rates of interest are high and expected to go down in the near future.

Accepted Answer

A) True 
 B)False

Question 5

What questions should you answer before deciding to purchase a house?

Accepted Answer

A) Will my life be stable or in transition in the next few years? 
B) Is my job and the company I work for stable and secure? 
C) Do I understand the responsibilities of home ownership? 
D) All of the above are correct. 
A) Will my life be stable or in transition in the next few years? 
B) Is my job and the company I work for stable and secure? 
C) Do I understand the responsibilities of home ownership? 
D) All of the above are correct.

Question 6

Which of the following is not an advantage of living in a condo?

Accepted Answer

A) Limited maintenance 
B) Building equity for resale and investment 
C) Direct ownership of a specific unit 
D) Freedom from neighbors 
A) Limited maintenance 
B) Building equity for resale and investment 
C) Direct ownership of a specific unit 
D) Freedom from neighbors

Question 7

Erin's gross annual salary is $60,000.Using the 28/36 PITI guide,what is the maximum she can afford on the PITI to monthly gross income?

Accepted Answer

A) $1,388.89 
B) $1,400 
C) $1,250.00 
D) $1,000 
A) $1,388.89 
B) $1,400 
C) $1,250.00 
D) $1,000

Question 8

How much would the monthly payment be on a mortgage of $250,000 for 30 years at a rate of 6.0%?

Accepted Answer

A) $1,498.87 
B) $1,779.48 
C) $743.66 
D) $721.73 
E) $1,450.03 
A) $1,498.87 
B) $1,779.48 
C) $743.66 
D) $721.73 
E) $1,450.03

Question 9

If you are not yet committed to living in a particular geographic region,rental housing is a good option for you.

Accepted Answer

A) True 
 B)False

Question 10

The Internet can help you research neighborhoods and find a community in which you'd like to live.

Accepted Answer

A) True 
 B)False

Question 11

What are the common mortgage loan options?

Accepted Answer

-balloon payment
-graduated pa

Question 12

What would the monthly payment be on a $300,000,20 year mortgage with a 4% APR be?

Accepted Answer

A) $1,432.25 
B) $2,245.83 
C) $1,817.94 
D) $1,765.48 
A) $1,432.25 
B) $2,245.83 
C) $1,817.94 
D) $1,765.48

Question 13

You are in the process of purchasing a new home.Expenses that the buyer and seller incur when finalizing the transfer of the ownership of the house are called

Accepted Answer

A) end costs. 
B) finalization costs. 
C) transfer fees. 
D) closing costs. 
E) none of the above. 
A) end costs. 
B) finalization costs. 
C) transfer fees. 
D) closing costs. 
E) none of the above.

Question 14

A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

Accepted Answer

A) True 
 B)False

Question 15

A situation in which the monthly payments are less than the interest that is due on the loan,and the unpaid interest is thus added to the principal is called

Accepted Answer

A) partial amortization. 
B) negative amortization. 
C) reverse amortization. 
D) decaying amortization. 
E) none of the above. 
A) partial amortization. 
B) negative amortization. 
C) reverse amortization. 
D) decaying amortization. 
E) none of the above.

Question 16

Private mortgage insurance is designed to protect the

Accepted Answer

A) borrower. 
B) lender. 
C) lien holder. 
D) all of the above. 
A) borrower. 
B) lender. 
C) lien holder. 
D) all of the above.

Question 17

What are the basic financing options when considering a new vehicle?

Accepted Answer

The basic options are to pay c

Question 18

A real estate short sale is a sale of property where the proceeds from the sale exceed the balance owed on the property.

Accepted Answer

A) True 
 B)False

Question 19

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

Accepted Answer

A) True 
 B)False

Question 20

You have an option on an ARM that has a two-year adjustment interval,4% margin,2% periodic rate cap and a 6% lifetime cap.The current initial rate is 5.35%.You can also get a 30-year,fixed-rate mortgage for 6.65%.You plan on staying in this home for at least 10 years.What would be your best choice?

Accepted Answer

A) Probably the ARM loan since your PITI would be lower. 
B) Probably the ARM loan since your PITI would be lower and the market rates of interest could get lower. 
C) Probably the fixed-rate loan because your PITI will be lower. 
D) Probably the fixed-rate loan because it is easier to budget for and it is less risky for you. 
A) Probably the ARM loan since your PITI would be lower. 
B) Probably the ARM loan since your PITI would be lower and the market rates of interest could get lower. 
C) Probably the fixed-rate loan because your PITI will be lower. 
D) Probably the fixed-rate loan because it is easier to budget for and it is less risky for you.

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

A mortgage broker earns income based on fees or commissions on the loans they broker.

Congratulations! You have just agreed on the final price for your new car and now you have to finance the purchase.The negotiated price of the new car is $18,500 and you will receive $5,500 for your trade-in.What will your monthly payment be on a 48-month loan with a 7% APR?

The best time to get an ARM is when the market rates of interest are high and expected to go down in the near future.

What questions should you answer before deciding to purchase a house?

Which of the following is not an advantage of living in a condo?

Erin's gross annual salary is $60,000.Using the 28/36 PITI guide,what is the maximum she can afford on the PITI to monthly gross income?

How much would the monthly payment be on a mortgage of $250,000 for 30 years at a rate of 6.0%?

If you are not yet committed to living in a particular geographic region,rental housing is a good option for you.

The Internet can help you research neighborhoods and find a community in which you'd like to live.

What are the common mortgage loan options?

What would the monthly payment be on a $300,000,20 year mortgage with a 4% APR be?

You are in the process of purchasing a new home.Expenses that the buyer and seller incur when finalizing the transfer of the ownership of the house are called

A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

A situation in which the monthly payments are less than the interest that is due on the loan,and the unpaid interest is thus added to the principal is called

Private mortgage insurance is designed to protect the

What are the basic financing options when considering a new vehicle?

A real estate short sale is a sale of property where the proceeds from the sale exceed the balance owed on the property.

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

You have an option on an ARM that has a two-year adjustment interval,4% margin,2% periodic rate cap and a 6% lifetime cap.The current initial rate is 5.35%.You can also get a 30-year,fixed-rate mortgage for 6.65%.You plan on staying in this home for at least 10 years.What would be your best choice?

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

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

A mortgage broker earns income based on fees or commissions on the loans they broker.

Congratulations! You have just agreed on the final price for your new car and now you have to finance the purchase.The negotiated price of the new car is $18,500 and you will receive $5,500 for your trade-in.What will your monthly payment be on a 48-month loan with a 7% APR?

The best time to get an ARM is when the market rates of interest are high and expected to go down in the near future.

What questions should you answer before deciding to purchase a house?

Which of the following is not an advantage of living in a condo?

Erin's gross annual salary is $60,000.Using the 28/36 PITI guide,what is the maximum she can afford on the PITI to monthly gross income?

How much would the monthly payment be on a mortgage of $250,000 for 30 years at a rate of 6.0%?

If you are not yet committed to living in a particular geographic region,rental housing is a good option for you.

The Internet can help you research neighborhoods and find a community in which you'd like to live.

What are the common mortgage loan options?

What would the monthly payment be on a $300,000,20 year mortgage with a 4% APR be?

You are in the process of purchasing a new home.Expenses that the buyer and seller incur when finalizing the transfer of the ownership of the house are called

A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

A situation in which the monthly payments are less than the interest that is due on the loan,and the unpaid interest is thus added to the principal is called

Private mortgage insurance is designed to protect the

What are the basic financing options when considering a new vehicle?

A real estate short sale is a sale of property where the proceeds from the sale exceed the balance owed on the property.

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

You have an option on an ARM that has a two-year adjustment interval,4% margin,2% periodic rate cap and a 6% lifetime cap.The current initial rate is 5.35%.You can also get a 30-year,fixed-rate mortgage for 6.65%.You plan on staying in this home for at least 10 years.What would be your best choice?

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