Personal Finance Exam 3 Chapters 9-12

Which of the following is an disadvantage of buying a house?

• Fewer responsibilities

• Few financial benefits

• Financial uncertainty

• Legal details

Which of the following is an advantage of renting?

• Lower initial costs

• Limited mobility

• Few financial benefits

• Cost of renting

Which defines earnest money

• Prepaid interest charged by lender

• Portion of price of home for good faith

• Along-term loan on a specific piece of property such as a home or other real estate

• The maximum percent

Which of the following defines a mortgage?

• Individually owned housing units in a building

• A long-term loan on a specific piece of property such as a home or other real estate

• Prepaid interest charged by lender

• Balance owed is reduced with each payment

Which of the following defines amortized

• Balance owed is refused with each payment

• Portion of price of a home for good faith

• Prepaid interest charged by lender

• The maximum percent

Which of the following defines points

• Portion of price of a home for good faith

• The maximum percent

• A long-term loan on a specific piece of property such as a home or other real estate

• Prepaid interest charged by lender

Which of the following defines rate cap

• The maximum percent

• Individually owned housing units in a building

• Balance owed is reduced with each payment

• Prepaid interest charged by lender

Which of the following describes condominium

• Portion of a home for good faith

• Individually owned housing units in a building

• The maximum percent

• Prepaid interest charged by lender

PMI Insurance requires

• Required if the down payment is less than 20%

• Required if down payment is more than 60%

• Required if the down payment is more than 20%

• Required if the down payment is less than 60%

Insurance is defined as

• Uncertainty or lack of predictability

• Increases the likelihood of a loss, such as defective house wiring

• Legal responsibility for financial cost of another person's losses or injuries

• Protection against possible financial loss