What is the disadvantage to buying a home

Assignment Help Financial Management

Reference no: EM132065184

1. Which of the following is not a step toward purchasing an automobile?

Determine affordability

Shop for financing

Analyze needs versus wants

Make a preliminary offer

2. When picking out a car and determining needs versus wants, a person should ask him or herself all of the following questions except:

How much cargo do you carry?

Do you want a manual or automatic transmission?

Do you need two-wheel drive, all-wheel drive, or four-wheel drive?

All choices are correct.

3. How much of a down payment do lenders require when purchasing a car?

10%

15%

20%

40%

4. What is the disadvantage to buying a home?

The value of your house may increase.

Eventually, you will be able to live payment-free.

The value of your house may decrease.

You will gain equity by paying down your mortgage.

5. What is a mortgage?

The legal document used to allow a lender to use real property as collateral

The difference between what is owned vs. what is owed

The transfer of a lease agreement to a new tenant

All of the choices are incorrect.

6. Most lenders require how much of a down payment for a house?

30%

40%

20%

No down payment

7. Why might you have to pay private mortgage insurance (PMI)?

You had more than three traffic violations in the past year.

You put down less than 20% on your home.

You live in a high-risk neighborhood.

You have a history of defaults.

8. What does HELOC stand for?

Health expense license of California

Home equity line of credit

Home equity liquidation of credit

None of the answers are correct.

Reference no: EM132065184

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