chapter 7 BAF

if you have 150,000 30-yr 5% mortgage how much of your first monthly payments of 805.50 would go to interest?

625.00 (150000*1month/12months=625.00)

if you have an interest rate subsidy from a home builder or real estate developer, you have a

buy-down

a legal doc that includes information about the due date of monthly rent is called

lease

the opportunity to have another person take over rent payments and live in the rental unit is called a

subletting

what is not correct regarding real estate agents

they require you to conduct your own showings

Jordan earns an annual salary of 45,000. if a lender uses 33% of monthly gross income as a guideline for the max PITI, what is the max mortgage that jordan can apply for ?

1,237.50

Carrie bought a house 5 yrs 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

117,000.00 (150,000*(1-.22)=117,000)

crystal is looking for a new apartment, what are her total annual costs associated with renting?

12,270.00 ((1000*12 months) +250+20=12,270)

jordan earns an annual salary of 45000, if a lendor uses 33% of monthly gross income as a guideline for the max PITI, what is the max mortgage that jordan can apply for ?

1237.50 (3750*.33=1237.50)

what is the total cost of renting per year

14,710.00

annual rent payment =14400 annual renters insurance= 300 annual interest lost on security deposit= 10 value of apartment=150000 what is the cost renting per year ?

14,710.00 (14400+300+10)

marcus can afford a monthly mortgage payment of 900. if he is eligible for a 30 yr, 5% mortgage ( where the mortgage factor is 5.37) how much of a mortgage loan can he afford ?

167,597.77

what is the annual cost of owing? home value =300,000 annual mortgage payments= 19,200 annual property taxes= 4,800 estimated maintenance and repairs = 1% of home value growth in equity= 3,000 tax savings =2,800 estimated annual appreciation= 1.5% of home value

17,900.00

if you have a 150,000 30 yr 5% mortgage, how much does to principle if you pay 805.50

180.50

if you have 150000 30yr 5% mortgage, how much of your first monthly payment of 805.50 will go to principle ?

180.50 (805.50-625.00=180.50)

trent wants to buy a house but can provide only 10% down payment, he will probably be required to have

PMI

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

PMI

if you are selling your house by owner, you should still enlist the assistance of

a lawyer or title company

rick has a convetional mortgage, he can monitor the reduction of his loan balance through his payments by using _____ information

amortization

nancy buys her house, the mortgage company will usually conduct a

appraisal

when Nancy buys her house, the mortgage company will usually conduct a

appraisal

maddy wants to purchase a larger house. however, she has not yet sold her current home. she may want to include a ____ in her offer

contingency clause

paul and lora built their home, when they researched contractors, they considered all of the following except

contractors property tax payments during construction

what form of housing is where units are owned by nonprofit organizations?

cooperative housing

pauline just submitted an offer on her dream home, as evidence of good faith, she also included a _____

earnest money

what is an account used to pay property taxes and homeowners insurance?

escrow

wuin applied for a loan. he provided info about his finances and the home he plans to purchase. results of the affordability mortgage calculation included all of the following except

expected maintenance costs

frank wants to sell his house on his own. what isn't correct about his sale ?

he should show the house only when he is home

frank wants to sell his house himself what is not correct about his sale

he should show the house only when he is home alone

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

his original cost

if you do not pay back any of the loan amount for a portion of the loan period, you have a

interest only mortgage

this gives the landlord the right to take legal action against a tenant for nonpayment of rent or destruction of property

lease

this provides the tenant protection fro rent increases

lease

this provides the tenant protection from rent increase

lease

when sam applied for a loan, he was assured that his rate would not change if he closed within 30-90 days, sam had an ____ on the interest rate

lock

a private mortgage insurance

must be terminated when the homeowners equity reaches 22%

veronica has had a variable rate mortgage for several years, sadly the monthly payments have not covered her interest owed. as a result, her home equity is decreasing because of

negative amortization

during the closing for a home purchase you should

pay all the closing costs, settle last min details, and sign docs

Yvette has a flexible rate mortgage that limits the amount to which her monthly payments can rise. this feature is called a

payment cap

yvette has a flexible rate mortgage that limits the amount to which her monthly payments can rise. this is called

payment cap

becca paid extra money to reduce her mortgage interest rate. the extra money is called

points

a reverse mortgage

provides older home owners with tax free income in the form of a loan that is repaid when the home is sold or the home owner dies

major factors that affect the affordability of your mortgage include all of the following except

size of the home

major factors that affect the affordability of your mortgage include all except

size of your home

most tenants sign a lease. which is part of a lease agreement

the conditions under which the landlord may enter the apartment

laine purchased her living unit in a building with five other seperate units, she purchased a

townhouse

what isn't correct

traditional financial guidelines suggest that you home should cost about 5 times your annual income

what scenario isnt correct

when showing the home, caryns suggestion to open drapes but keep lights turned off to conserve energy will give her property a positive image.