Mortgages

Front

What is the consequence of having a poor credit score?

Back

May pay a higher APR

Front

You want to pay less in overall interest. Every loan APR is the same. Select the best mortgage for you: 10 year loan, 15 year loan, 20 year loan, 30 year loan.

Back

10 year loan

Front

Is buying your own home usually a better choice than renting, assuming you do not overborrow or overpay, have a stable job, and have no desire to move?

Back

Agree

Front

What percent of your monthly NET income should your monthly mortgage, taxes, and insurance be?

Back

Less than 35%.

Front

When you read a credit application (i.e. credit card, mortgage) and it says the loan is accompanied with a 20% Annual Percentage Rate (APR). What does this mean?

Back

You'll pay 20% of the amount you sill owe on the loan in interest each year

Front

Mortgages with shorter terms have higher monthly payments. Why would anyone want a short-term mortgage?

Back

You pay less interest in total.

Front

What is an investment?

Back

A way to grow your money over time

Front

If you are unable to repay your mortgage, what is the most likely result? Options: The bank might sell your home to recover its investment, You might have to go to prison, The bank might force you to take out an additional loan, The bank might take all they money and goods you own

Back

The bank might sell your home to recover its investment

Front

If you have a mortgage with a 20-year terms, how many payments will you probably have to make? Options: 20, 200, 240, 360

Back

240

Front

If you bought a home for $100,000 and the home is worth $150,000 and paid $20,000 down payment at closing- how much equity do you have in the home?

Back

$70,000