Exam 5: Making Automobile and Housing Decisions

Leasing accounts for about ____ percent of all vehicles sold today.

Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease.

Billy and Suzie want to calculate the difference in monthly payments on a $110,000 home as a result of a $5,000 down payment or a $10,000 down payment.Use your financial calculator to figure the monthly payments,assuming they get a 6.5%,30-year mortgage.

Homeowners may be allowed to deduct the following on their taxes

The following is/are major source(s)of home mortgages:

A condominium or townhome buyer will make monthly mortgage payments as well as pay a fee for services and maintenance of common areas.

Capitalized cost on an auto lease is similar to the interest rate on a loan.

First-time homebuyers can withdraw up to $10,000 from an IRA without penalty regardless of their age.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The interest rate on an ARM can be increased [automatically every year | only when a designated index increases].

The Veterans Administration guarantees mortgage loans given to qualified veterans.

First-time homebuyers can withdraw up to $25,000 from an IRA without penalty if they are 30 years of age or less.

The greatest fixed cost involved with owning an automobile is usually the auto insurance payments.

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

For most homeowners,the most important financial reason for owning a home is

As a homeowner,the federal government may allow you to deduct interest expenses and taxes paid on the property.

Condominiums and townhomes are generally less costly than single-family,detached homes.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Seeking mortgage preapproval [is | is not] recommended when you begin your house search.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -With a(n)[closed-end | open-end] lease,one owes more at the end of the lease if the car is worth less than its projected value at the end of the lease.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Shorter term auto loans offer the benefit of [lower payments | lower interest rate]

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The [longer | shorter] the period of time you expect to live in a house,the more likely refinancing is a sound financial decision.