Loans

When you lease a car, you are the

• lessor

• renter

• lessee

• cosigner

The difference between what you owe on your home and the balance of the mortgage on the home.

• assessment

• underwater

• mortgage

• equity

A contract for a car loan should have all of the following except...

• It should allow you to pay extra each month.

• total amount of interest to be paid.

• It should not allow you to pay extra each month.

• no prepayment penalty

When a bank takes possession of a home because the borrower has failed to make loan payments.

• underwater

• equity

• mortgage

• foreclosure

Before renting an apartment, you should consider all of the following except

• The safty of the area around the apartment.

• The location of the apartment

• The interest rate

• The amount of the rent.

Which of the following will be returned to you at the end of your car lease if you return the car in good condition?

• down payment

• assessment

• Collateral

• security deposit

Lenders typically require what percentage down payment on a home mortgage?

• 20

• 10

• 15

• 25

A homeowners association fee covers...

• landscaping, upkeep and normal maintenance

• mortgage interest

• major expenses for the property

• individual condo maintenance

When Henry bought his car 4 years ago, he paid $40,000. Today he found out he could only get $20,000 if he traded it in on a new car. This is an example of which of the following?

• appreciation

• lease

• depreciation

• Collateral

Both an auto loan and a mortgage are examples of a secured debt.

• True

• False