Personal Finances Exam 2

150,000 x .22 = 33,000 150,000 - 33,000 = 117000

Carrie bought a house five years ago for $150,000. At that time she borrowed $140,000 from her bank. The house is now worth $162,000. Her PMI will automatically be dropped when her mortgage balance drops to

Requires you to pay interest every day until you repay the cash advance

A cash advance

The maximum dollar amount of credit the lender has made available to a borrower.

A line of credit is

A revolving check credit.

A prearranged loan for a specified amount that a consumer can use by writing a special check is known as

Covers the repair costs of a product.

A service contract

Unit pricing

A standard measurement used to compare the prices of packages of different sizes is

Maintenance and repairs.

A variable operating cost for a vehicle is

Location of home

All of the following are factors mentioned in the video that individuals should consider before obtaining a home equity loan, except:

Monthly lease payments are usually lower than monthly financing payments.

Buying a vehicle can be a challenging process. When researching a vehicle, a consumer may want to consider all of the following vehicle options except

350 to 850

FICO scores generally range from

annual mortgage payments + annual property taxes + annual homeowner's insurance + est. maintenance and repairs - growth in equity - tax savings - est. annual appreciation

Given the information here, what is the annual cost of owning?

1

If you have probably reached the upper limit of debt obligations, your debt-to-equity ratio is about

Prepaid legal services.

If you want to pay a set fee to receive unlimited or reduced-fee legal assistance, you should use (a)

$40,000 200,000 x .65 - 90,000

Landon is looking to obtain a home equity loan. A lender will loan 65% of the home's current market value, which is $200,000. Landon currently owes $90,000 on his original home mortgage. What is his home equity credit limit available?

Limited warranty

Most products come with some guarantee of quality. This type of warranty covers only certain aspects of the product, such as parts.

Full warranty

Most products come with some guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a reasonable amount of time.

Must be terminated automatically when the homeowner's equity reaches 22% of the property value at the time the mortgage was executed.

Private mortgage insurance

Points

Rebecca paid extra money to reduce her mortgage interest rate. That extra money is called:

class action lawsuit

Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem?

Depreciation

The largest fixed expense associated with a new automobile is

The smallest amount you can pay and remain a borrower in good standing.

The minimum monthly payment on a credit card is

The deductibility of the loan interest on federal taxes.

The primary benefit of a home equity loan is

Pre shopping activities, evaluating alternatives, selection and purchase, post purchase activities.

The text identifies several phases in the research-based buying process. The correct order of the phases is

collateral

The use of property or savings to secure a loan relates to

Private-label or store brands.

These products are sold by one chain of stores and are low-cost alternatives to famous-name products.

ARM

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

3000 + (350 x 12 x 6) + (3000 x 6 x .02) - 4000 24560

Using the following information, what is the cost to buy a car? •Down payment$3,000•Monthly loan payment$350 per month for a six-year loan•Opportunity cost of down payment$3,000 × loan period (in years) × 2% interest•Estimated value of vehicle at end of ownership period$4,000

Closed-end credit; open-end credit

When compared to __________________, ___________________ is often more difficult to obtain because the lender must rely upon your word that you will pay back the loan.

Paying for everyday living expenses

Which of the following is NOT a valid reason for borrowing?

Tenants cannot take tax deductions for mortgage interest and property taxes.

Which of the following is a disadvantage of renting?

Automobile Loans

Which of the following is an example of closed-end credit mentioned in the video?

It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles.

Which of the following is correct about the lemon law?

You receive bills for a credit card account you never opened

Which of the following is often the first sign of a stolen identity?

Closed-end credit; lower

____________________________ is more common and has a _______________ interest rate charged by most lenders.