WorksheetsCredit - Home Buying
Total questions: 20
Worksheet time: 10mins
A fully amortized payment is split into which two components?
The principal and the payment
The principal and the interest
The loan term and the interest
The interest rate and the total interest
Casey has an amortized loan payment of $400, and the interest they owe for that month is $50. By how much does Casey pay down the principal?
$50
$350
$400
$450
As the months progress on an amortized loan. . .
The payments stay the same, but the principal is paid down more quickly
The payments stay the same, but the principal is paid down more slowly
The payment sizes decrease, but the principal is paid down at the same rate
The payment sizes decrease, and the principal is paid down more quickly
If you can afford it, why is it a great idea to pay MORE than your amortized payment on a car, home, or other loan? Select all that apply.
You will pay your loan off faster
You will pay less total interest
You will pay less total principal
You will pay less money overall
The details of any loan will include the following three components:
The principal, the interest rate, and the loan term
The money you pay, the money the lender pays, and the principal
The mortgage, the auto loan, and the small business loan
The loan amount, the credit card payment, and the statement
Having a good credit score, making a larger down payment, and finding a cosigner with good credit are all ways to . . .
Decrease your principal
Increase your total payments
Increase your term
Decrease your interest rate
Each of these statements describes a variable rate loan EXCEPT...
Typically starts with a lower interest rate than a fixed rate loan
Is riskier to the borrower because the interest rate could increase substantially
Is almost always a better option
Can increase or decrease the interest rate over the course of the loan
How can making a larger down payment save you money when purchasing a car?
(Choose two correct answers)
Your monthly payment will be higher
Your monthly payment will be lower
You will pay less interest over the life of the loan
You will pay more interest over the life of the loan
Which statement most accurately describes the difference between leasing and owning a vehicle?
Leasing is a term used when you purchase a car for the longest term possible
Leasing a car is making monthly payments to use a car for a fixed period of time, but then you return it without owning it
Leasing is a term used when you take the car for an initial test drive
Leasing a car requires a very large down payment, while purchasing a car does not
A standardized way of showing you the total cost of borrowing money.
Annuity Purchase Rate
Annual Percent Rating
Average Payment Rate
Annual Percentage Rate
It is canceled
When talking about home loans ARM stands for . . .
Adjustable Rating
Mortgage
Annual Rate Mortgage
Adjustable Rate Mortgage
Adjustable Reduction Mortgage
As a general rule, mortgage payments shouldn't exceed __ of a buyer's net pay.
25% to 35%
Which is not a responsibility of a landlord?
Providing a convenient way for rent payments.
Providing a safe and adequate water supply.
Making sure the exterior of the dwelling is weatherproof and waterproof.
Giving at least 30 days' written notice of intent to move.
