Chapter 7 Personal Finance
homeowners can request that PMI be removed once equity has grown 22 percent of the _____________ of a home
current market value
True or False: Home equity loan interest is only tax deductible as long as the proceeds are spent on education with the risk being that a default on the equity loan could mean fore closure
false
the right to occupy the unit as long as stock is owed describes
the rights of residents of cooperative housing
an adjustable mortgage usually has a rate cap and a _______________ cap.
payment
How could the tax benefit and risk of home equity loan best be described?
interest is tax deductible but default and it could mean fore closure
Benefits of FHA/VA fixed-rate mortgage include:
low down payment May be assumable with no prepayment penalties
the only way that interest only mortgage benefits the borrower is by
lower payments
the first thing you should do when going to a mortgage company is ________________.
prequalify
_____________ doesn't protects tenants from rental increase
provision
draw back of VS Loan
slow processing time
an estimate of the current value of the property is known as
an appraisal
interior construction factors include the following:
conditions of stair ways condition of the water heater condition of the heating unit
who is most likely to benefit from a reverse mortgage
old people above 62
recommending other advisors to help you with the process of buying or selling a home and helping negotiate a price for a home are both services offered by a ________ _________ __________.
real estate agent
Although the interest only mortgage has a lower interest payments, it does not allow the borrower to:
to build equity unless the home increases in value generally keep the loan at a low rate past 10 years decrease amount that is owed