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