Module 8

Jordan earns an annual salary of $45,960. If a lender uses 33% of monthly gross income as a guideline for the maximum PITI (principal, interest, taxes, and insurance), what is the maximum amount that Jordan can pay for PITI each month?

$1,263.90

Mason is applying for a 30-year mortgage with a 5% interest rate. Mason has an annual income of $50,000 and has no additional debt. His estimated monthly property taxes and homeowners insurance is equal to $430. What is Mason's affordable mortgage amount?

$175,977.65

Aubrie is going to make a 22% down payment on her house. If her affordable mortgage amount is $212,476.35, what is Aubrie's affordable home purchase price?

$272,405.58

Paisley has an annual income of $54,600 and has additional debt of $350. Her estimated monthly property taxes and homeowners insurance is equal to $390. What is Paisley's affordable monthly mortgage payment?

$989.00

Ursula wants to have an interest rate that can increase or decrease during the life of her loan. She should look for a(n)

ARM.

According to the video, all of the following are seller estimated costs, except:

Appraisal fee

According to the video, all of the following are other options to consider when you finance your home, except:

Buy-Backs

The title search fee is paid by the _________ and is designed to ensure that the ___________ can legally purchase the property.

Buyer; buyer

All of the following are true about conventional mortgages discussed in the video, except:

Each monthly payment is fixed for a set period of time and then they may adjust if the market interest rate has risen.

According to the video, the decision to rent or buy a home is an important decision that can affect not only your ________________, but also your _________________.

Financial decisions; quality of life

Lonnie wanted to sell his house but didn't know what price to ask. He should consider all of the following except

His original cost.

According to the video, which of the following is an advantage of renting a home?

Individuals can rent a home with a smaller financial commitment than if you were to buy a home, It is easy to move or change homes if you don't like the first home, and There is less maintenance associated with renting a home.

According to the video, all of the following is a disadvantage of buying a home, except:

It can be hard to maintain ownership of the home.

Trenton wants to buy a house but can provide only a 10% down payment. He probably will be required to have

PMI payments.

Which of the following expenses is NOT usually incurred by a tenant?

Property taxes.

According to the chart in the video, what is reported at the bottom of the statement?

The amount owed at closing by both the buyer and seller

Kelly selected a home and submitted an offer to the seller.

The seller may reject the offer and choose to provide a counteroffer.

All of the following are true of adjustable-rate, variable-payment mortgages according to the video, except:

There are no rate caps for this type of mortgage.