PFL Major Purchases

how much money will a bank loan you to buy a house

• Yearly income times 4

• yearly income times 2

• Yearly income times 3

What percentage of your income should you keep your mortgage/rent payment under?

• 1/4

• 1/5

• 1/3

What percentage of the estimated value of the house will the bank approve you for a mortgage?

• 75%

• 85%

• 95%

• 100%

the value of the car you are giving to the car dealership

• estimated value

• trade in value

• interest rate

It is impossible to owe more on a car than it is worth

• true

• false

What is the term used for when you owe more money on the are than the car is worth

• being upside down

• being right side up

• having a low interest rate

The better your credit score the higher the interest rate

• true

• false

a co-signer is someone who?

• agrees to make the payments if the original person does not

• helps negotiate the deal

• stands in the back and repeats everything you say

Your interest rate has no effect on your payments.

• true

• false

who should you call to get a pre approved loan before you go shopping for a car

• the car dealership

• your bank

• your employer