Quiz 9: Personal Finance
Duane Miller wants to know what price home he can afford. His annual gross income is $60,000. He has no other debt expenses and expects property taxes and insurance to cost $400 per month. He knows he can get a 6%, 15 year mortgage so his mortgage payment factor is 8.43. He expects to make a 10% down payment. What is Duane's affordable home purchase price? Round your answer to the nearest $100.
$164,800.
Michelle Duncan wants to know what price home she can afford. Her annual gross income is $45,000. She owes $750 per month on other debts and expects her property taxes and homeowners insurance to cost $250 per month. She knows she can get a 7.5%, 30 year mortgage so her mortgage payment factor is 6.99. She expects to make a 20% down payment. What is Michelle's affordable home purchase price? Round your answer to the nearest $100.
$76,000.
A cooperative housing arrangement involves:
A nonprofit organization whose residents must own its stock.
Gary Smith is purchasing one housing unit in a building with several units. What type of housing is Gary most likely going to live in?
Condominium.
A contract condition that states that the agreement is binding only if a certain event occurs is a:
Contingency clause.
Which of the following is a form of housing in which the units in a building are owned by a nonprofit organization?
Cooperative housing.
Most people do not select a place of residence based on:
Credit score.
Which of the following can affect the price of a home?
Current interest rates.
Which one of the following is an advantage of buying?
Financial benefits
Prefabricated homes refers to:
Housing units that are partially assembled in factories.
If you sell your home without a real estate agent, you should still employ the services of a ______ to assist you with the contract and the closing.
Lawyer.
A condominium involves:
Ownership of an individual housing unit in a building.
A home equity loan may also be referred to as a ______ mortgage.
Second.
Which of the following serves as collateral for the mortgage?
The home you buy.
A real estate short sale occurs when:
The new selling price is less than the amount owed on a previous mortgage.