WorksheetsTopic 4: Automobiles and Housing (1-30)
Total questions: 31
Worksheet time: 16mins
Which of the following is true about buying cars?
Buying a new car is the biggest wealth killer in the United States
Buying a new car increases in value after five years
Buying a new car never loses value in the first year
Buying a new car usually gains equity like a house
Which statement about buying cars is correct?
Average monthly car payment is $729 per month
The average monthly car payment is less than $200
A new car gains 10% in value when you drive it off the lot
Car payments are typically optional for new cars
When a new car is driven off the lot, what typically happens to its value?
It increases by 5% immediately
It drops by about 10% immediately
It stays the same until the end of year one
It doubles in value in the first week
In the first year of ownership, a new car usually loses what share of its value?
5–10%
20–30%
40–50%
60–70%
By year five, most cars have lost approximately what share of their original value?
20%
40%
60%
80%
Which of the following are expenses included when owning a car?
Purchase price, insurance, maintenance, gas, registration
Security deposit, monthly rent, move-out fees
Closing costs, appraisal, mortgage interest
Property taxes, HOA fees, utilities
Which is a pro of buying a car?
Ownership once the loan is paid off
Mileage restrictions on use
Fees for early termination
Returning the car at the end of the term
Which is a con of buying a car?
Higher monthly payments compared to a lease
Returning the car with no equity
Mileage limits on usage
Fees for early lease termination
Which is a pro of leasing a car?
Lower monthly payments compared to buying
Ownership at the end of the lease
Ability to customize freely
Unlimited mileage
Which is a con of leasing a car?
No ownership at the end of the lease
No maintenance responsibility
Building equity over time
Ability to sell the car after the term
Which best describes a single-family home?
Detached house designed for one family
Multi-unit building with separate apartments
Multi-story home that shares walls with neighbors
Unit owned within a high-rise building
Which best describes a townhouse?
Detached house with a large yard
Multi-story home that shares walls with neighbors
Rental unit in an apartment building
Government-subsidized housing
Which best describes a condominium (condo)?
Detached house with private land
Individually owned unit in a larger building
Rental property managed by a landlord
Multi-family rental with one owner
Which best describes a multi-family home?
A property containing multiple separate living units
A single detached house
A government-subsidized rental unit
A condo in a high-rise
Which is considered a housing expense?
Down payment, closing costs, principal, interest, property taxes
Car insurance, car maintenance, and gas
Rent for a car lease
Security deposit and utilities for an apartment
What is a down payment?
The upfront payment made toward the purchase price
The total loan amount borrowed from a bank
A type of monthly utility bill
The fee charged by a real estate agent
What is the typical down payment required for an FHA loan?
0%
3–5%
10%
20%
What is the typical down payment required for a fixed-rate loan?
0%
3–5%
10%
20%
Which best defines principal in a mortgage?
The original loan balance that must be repaid
The percentage charged by the lender for borrowing
The cost of closing a sale
The yearly property tax
Which best defines interest in a mortgage?
The cost of borrowing money paid to the lender
The property tax based on value
The homeowner’s annual insurance premium
The upfront down payment
What is amortization?
Paying off a loan over time through regular payments of principal and interest
Paying only interest each year without reducing the loan
A one-time fee charged at closing
An optional insurance policy for the lender
In the early years of a mortgage, most payments go toward:
Interest
Principal
Utilities
HOA fees
In the later years of a mortgage, most payments go toward:
Principal
Interest
Taxes
Insurance
What are property taxes based on?
The value of the home and land
The buyer’s annual salary
The monthly utility cost
The real estate agent’s fee
How often are property taxes usually paid?
Monthly
Quarterly
Semi-annually or annually
Only at closing
What does homeowners insurance protect against?
Damage or loss to the home and personal belongings
Missed utility payments
Increased HOA fees
Rising mortgage interest rates
Which of the following is a utility expense?
Electricity, water, natural gas, trash collection, internet
Property taxes and PMI
Principal and interest
Closing costs and inspection fees
What is private mortgage insurance (PMI)?
Insurance that protects the lender if the borrower defaults
Insurance that covers utilities and HOA fees
Insurance that pays off property taxes
Insurance that covers only renters
When is PMI usually required?
When the down payment is less than 20%
When the home price exceeds $300,000
When utilities cost more than $500 per month
When the loan term is shorter than 10 years
When is private mortgage insurance (PMI) typically required?
When the down payment is less than 20%
When the interest rate is above 5%
When utilities cost more than $500 per month
When the loan term is shorter than 10 years
According to financial guidelines, how much of your gross monthly income should you spend on housing?
No more than 20%
No more than 30%
About 40%
At least 50%
