Chapter 10 Personal Finance
You consider these so you can
focus on homes you can afford
The costs of renting a home are
rent payments, security deposit, and renter's insurance.
A fixed-rate mortgage is preferred when interest rates are expected to:
rise
The decision to refinance depends on a comparison of the:
savings from the new interest rates and the closing cost that would be incurred.
The first step in buying a home is to:
compare existing homes for sale in your area so you can compare the cost of buying to the cost of renting.
The two financial components you must consider before purchasing a home are the:
down payment and the monthly mortgage payments.
Fixed-rate mortgages offer a fixed rate of interest for:
15 or 30 years, and are preferred by many homeowners because their payment is not tied to market interest rates.
Each mortgage payment represents:
a portion of payment towards the principal and a portion of payment towards the interest.
Refinancing a mortgage
is generally done when interest rates fall substantially lower than your current mortgage rateis generally done when interest rates fall substantially lower than your current mortgage rate
An amortization table discloses the monthly mortgage payment based on the:
mortgage amount, a specified fixed interest rate, and a maturity.
An adjustable-rate mortgage contract
must specify how much the interest rate may adjust at one time.
A real estate broker can help you by:
offering suggestions on homes that satisfy your preferences.
When determining an affordable down payment, you should consider:
the market value of your assets.
The reputation of the school system in the area of the home you are buying is important because:
the quality of a school system influences the home values.
When determining affordable monthly mortgage payments, you should consider:
your monthly cash inflows and outflows.