Chapter 6 Review

How much does a car depreciate in the first year?

• 10%

• 15%

• 25%

• 30%

How much should you spend on a car per paycheck?

• Less than 15-20%

• Less than 21-25%

• Less than 26-30%

• Less than 20-30%

What is the biggest cost of buying a new car?

When is it better to rent instead of buying a home? When you're living there ...

• 3 years or less

• 4 -5 years

• 6-10 years

• It's always better to buy

What is a Loss Leader?

What is a requirement if you do not provide 20% down on a mortgage?

What is the most common length of mortgage?

Which home loan provides 100% financing?

What is a reverse mortgage?

Describe a variable interest rate mortgage. What is another name for it?