Home Mortgage

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

• Agree
• Disagree

What happens to the loan amount when you put down a larger down payment?

• Decreases
• Increases
• No change

Tags

CCSS.7.RP.A.3

What happens to the cost of a loan when the APR is higher?

• Loan cost increases
• Loan cost decreases
• No change

What is the consequence of having a poor credit score?

• None of these answers are correct
• May pay a higher APR
• May pay a lower APR
• Go to jail

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

• You pay less in principal in total

• You pay less interest in total

• You pay less in property taxes in total

• You pay less in insurance and processing fees

If you are unable to repay your mortgage, what is the most likely result?

• 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

What is one of the advantages to making a larger down payment?

• You will need a smaller loan

• You will need a bigger loan

• You will need a higher interest rate

• You will need a lower intererest rate

Tags

CCSS.7.RP.A.3

Which of the following will a bank consider in its decision to approve you for a mortgage?

• Your ethnic background

• Your religion

• Your salary

• Your hobbies

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?

• You'll pay 20% of your income on the loan each year

• The bank will only charge you 20% of the loan each year

• The bank will pay you 20% of what you charge while you have the loan

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

Tags

CCSS.6.RP.A.3C