More finance test review
if the max loan-to-value that a lender will accept on a house costing 100,000 is 80% borrowers must make a down payment of at least
20,000
a veteran might be able to by a home w no down payment with a
VA loan guarantee
If you made a down payment of $11,000 on a house worth $110,000, the lenders will require _____ as a result of the size of the down payment.
a private mortgage insurance 20%
a real estate sale contracts will include
amount you have paid as an earnest money deposit
1ST steps in the auto buying process is
analyze how much you can afford to spend on a car
Behavioral bias in which an individual tends to allow an initial estimate to dominate the subsequent assessment regardless of new info to the contrary is called:
anchoring
At the end of your car lease period, you intend to turn in the car, and you will not pay extra at that time based on the residual value of the car. You have ____ lease.
closed end
_____ are expenses that borrowed way during the final step of a real estate purchase
closing cost
With prequalification, a buyer can
collect any problems on their credit report
you recently bought a new home you receive title to an individual unit/joint ownership of any common areas/facilities
condominium
what is the biggest fixed auto ownership cost
cost of installment loan payment
lenders will usually require a loan-to-value ratio of ______ of less for a borrower to avoid having to pay private mortgage insurance
80%
Fixed Rate Mortgage
A mortgage in which the interest rate does not change during the entire term of the loan.
type of payment that lowers the potential depreciation & therefore your monthly lease payments on a leased car?
capital cost reduction
The price of the car you are leasing is called the:
capitalized cost
loss in the value of an automobile that occurs over its period of ownership
depreciation
T/F the job of a mortgage banker is to locate conventional loans for clients
false
_____ are loans offering low payments for the 1st few years, gradually increasing until year 3/5 and then remaining fixed
graduated-payment mortgages
The majority of each monthly payment at the beginning of the loan goes to pay the:
interest
a ____ ratio specifies the max % of the value of a property that a lender is willing to loan
loan-to-value
you take a car on a closed end lease for 5 years at the end of the 5th year you would need to pay additional Money only when
mileage limits are exceeded
max loan to value ratio that a lender will accept on a house costing $100,000 is 90% then the borrower must make a
minimum down payment of 10,000
the financing rate on a lease is called
money factor
which of the following are tax deductible if you itemize deductions
mortgage interest/property taxes
____ is a situation where homeowners owe more to the lenders than what their properties are worth
negative equity
helps a buyer know ahead of time the specific mortgage amount that they will be eligible for subject to change in rates/terms
prequalification
____ are ingoing costs of home ownership
property taxes/insurance
an escrow account is used to collect ____ from ones monthly mortgage payment
real estate taxes
Earnest money is the sum of money the home buyer deposits with the
seller to indicate the intent to purchase
foreclosure happens when
the lenders attempt to recover loan balances from the insolvent borrowers by forcing the sale of the home pledged as collateral