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.
