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.