FINN Quiz 5

The cost of installment loan payments

Which of the following is the biggest fixed auto ownership cost?

The lenders attempt to recover loan balances from the insolvent borrowers by forcing the sale of the home pledged as collateral.

A foreclosure happens when:

$20,000

If the maximum loan-to-value ratio that a lender will accept on a house costing $100,000 is 80%, then the borrower must make a down payment of at least:

Private Mortgage Insurance (PMI)

If you made a down payment of $11,000 on a house worth $110,000, the lenders will require _____ because of the size of the down payment.

Closed-end lease

Jacob has taken an SUV on lease from Free Cruisers Inc. for a period of 4 years. Jacob does not need to pay any extra amount when he turns in the vehicle because he didn't exceed the mileage specified in the lease and the SUV is not damaged. He has a:

True

Prequalification provides a home buyer with information regarding the specific mortgage amounts he or she is eligible for subject to the expected changes in interest rates.

Depreciation

The loss in the value of an automobile that occurs over its period of ownership is called:

Interest

The majority of each monthly payment at the beginning of the loan goes to pay the:

True

The market price of a house is $125,000, and the home buyer borrows $100,000. Two points are equal to $2,000.

Capitalized cost

The price of the car you are leasing is called the: