BUSI Chpt. 7

Donald wanted to buy a house in the country, so he sought the advice from his cousin Evan. Evan explained the advantages and disadvantages of home ownership; however, he did have some information incorrect. Which of the following is incorrect?

An advantage is that the down payment required is less than the security deposit for a rental.

Ricky has a conventional mortgage. He can monitor his interest and principal payments using _____ .

Anortization

When Nancy buys her house, the mortgage company will probably conduct a(n) _______.

Appraisal

Madeline wants to purchase a larger house. However, she had not yet sold her current home. She may want to include a(n) ________ in her offer.

Contingency clause

Frank and Diane wanted to buy a house. Which of the following do they need before they purchase a house?

Down payment

Private mortgage insurance

Must be terminated automatically when the homeowner's equity reaches 22 percent of the property value when the loan was initiated

Jim wants to make an offer to buy an older house. At this point, he should

Set up a home inspection

Kelly selected a home and submitted an offer to the seller

The seller may choose to provide a counteroffer

Georgina and Henry are looking at houses. Which of the following is correct?

They should assess the school system in the area they want to live.

A legal document that includes information about the due date of monthly rent is called a

lease