Question

Which of the following is not a step toward purchasing an automobile? Determine affordability Shop for...

Which of the following is not a step toward purchasing an automobile?

Determine affordability

Shop for financing

Analyze needs versus wants

Make a preliminary offer

2 When picking out a car and determining needs versus wants, a person should ask him or herself all of the following questions except:

How much cargo do you carry?

Do you want a manual or automatic transmission?

Do you need two-wheel drive, all-wheel drive, or four-wheel drive?

All choices are correct.

3 How much of a down payment do lenders require when purchasing a car?

10%

15%

20%

40%

4 What is the disadvantage to buying a home?

The value of your house may increase.

Eventually, you will be able to live payment-free.

The value of your house may decrease.

You will gain equity by paying down your mortgage.

5 What is a mortgage?

The legal document used to allow a lender to use real property as collateral

The difference between what is owned vs. what is owed

The transfer of a lease agreement to a new tenant

All of the choices are incorrect.

6 Most lenders require how much of a down payment for a house?

30%

40%

20%

No down payment

7 Why might you have to pay private mortgage insurance (PMI)?

You had more than three traffic violations in the past year.

You put down less than 20% on your home.

You live in a high-risk neighborhood.

You have a history of defaults.

8 What does HELOC stand for?

Health expense license of California

Home equity line of credit

Home equity liquidation of credit

None of the answers are correct.

Homework Answers

Answer #1

1 Which of the following is not a step toward purchasing an automobile?

Shop for financing

2 When picking out a car and determining needs versus wants, a person should ask him or herself all of the following questions except:

Do you need two-wheel drive, all-wheel drive, or four-wheel drive?

3 How much of a down payment do lenders require when purchasing a car?

20%

4 What is the disadvantage to buying a home?

The value of your house may decrease.

5 What is a mortgage?

The legal document used to allow a lender to use real property as collateral

6 Most lenders require how much of a down payment for a house?

20%

7 Why might you have to pay private mortgage insurance (PMI)?

You put down less than 20% on your home

8 What does HELOC stand for?

Home equity line of credit

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are planning to purchase a house that costs $550,000, and you will use a 30-year...
You are planning to purchase a house that costs $550,000, and you will use a 30-year mortgage. You want to determine whether or not you should save some of your money and put only 10% down on your house. Because you are only putting 10% down, lenders require that you purchase private mortgage insurance (PMI). You want to pay the PMI with a monthly payment (for the same 30-year). Assume that PMI is 1% of the mortgage amount and has...
The remaining Application Exercises deal with purchasing a house. Assume that you are currently renting an...
The remaining Application Exercises deal with purchasing a house. Assume that you are currently renting an apartment for $1,040 per month and you have been considering buying a house. You have saved $10,000 towards a down payment for the house. A salesperson informs you that he has a new house for sale, where the house and land were independently appraised at $200,000, but are being sold by the builderatadiscountpriceof $185,000.Thebuilderwantstogetridofthepropertyquicklybecausethehouseisthelastonetobesoldinthedevelopmentand the builder is moving on to construction of a new...
Develop a spreadsheet model to determine how much a person or a couple can afford to...
Develop a spreadsheet model to determine how much a person or a couple can afford to spend on a house. Lender guidelines suggest that the allowable monthly housing expenditure should be no more than 28% of monthly gross income. From this, you must subtract total nonmortgage housing expenses, which would include insurance and property taxes and any other additional expenses. This defines the affordable monthly mortgage payment. In addition, guidelines also suggest that total affordable monthly debt payments, including housing...
You hope to be able to purchase a home within 1-3 years after graduation. You expect...
You hope to be able to purchase a home within 1-3 years after graduation. You expect to have to save for the necessary down payment and closing costs without relying on financial help from your family or relatives. Your financial goal is to purchase a home in the $300,000 price range and have the available cash for the down payment and required closing costs for the type of mortgage financing that you select and are able to receive home mortgage...
A. $250,000 home by making a 20% down payment and then taking out a 3.74% thirty...
A. $250,000 home by making a 20% down payment and then taking out a 3.74% thirty year fixed rate mortgage loan to cover the remaining balance. All work must be shown justifying the following answers. (mortgage payment = $925.10 , total interest over entire life of loan = $200,000 , principle balance left after payment of 240th installment = $92,495.51 B. How much interest will you have saved by paying the loan off early after making the 240th payment? C....
The following article does a good job of breaking down the advantages/disadvantages of leasing vs. purchasing...
The following article does a good job of breaking down the advantages/disadvantages of leasing vs. purchasing vehicles: Title: Pros and Cons of Leasing vs. Buying a Vehicle Source: http://www.investopedia.com/articles/pf/05/042105.asp Buying a car can be overwhelming. In fact, the pleasure of getting a new car can be quickly clouded during the financing decision-making process and price negotiations. Besides price haggling, many car shoppers are plagued with the decision to leaseor buy. Which financing decision is right and why? This article will...
You are about to buy a million dollar house with a 20 percent down payment. The...
You are about to buy a million dollar house with a 20 percent down payment. The mortgage has 5 percent stated annual interest rate, compounded monthly, and calls for equal monthly payments over the next 30 years. The first payment is due one month from now. What is your monthly mortgage payment? I know the answer si 4294.57 but I am having trouble understanding the second part of the question The mortgage terms require that at the end of year...
Your friend wants to purchase a new TESLA car for $65,000. All wheel drive, Long range...
Your friend wants to purchase a new TESLA car for $65,000. All wheel drive, Long range battery, and dual motors. He has no savings, so he needs to finance the entire purchase amount. With no down payment, the interest rate on the loan is 10 % and the maturity of the loan is 6 years. His monthly payments will be $1673.33. He earns $1600.00 a month. He has a credit card limit of $13,000 and an interest rate of 12%....
4. A. What would be your mortgage payment if you pay for a $250,000 home by...
4. A. What would be your mortgage payment if you pay for a $250,000 home by making a 20% down payment and then taking out a 3.74% thirty year fixed rate mortgage loan to cover the remaining balance. All work must be shown justifying the following answers?                                                                                                             Mortgage payment = _______________ B. How much total interest would you have to pay over the entire life of the loan?                                                                                                             Total interest paid = __________ C. Suppose you inherit some...
Required information [The following information applies to the questions displayed below.] NOTE: Throughout this lab, every...
Required information [The following information applies to the questions displayed below.] NOTE: Throughout this lab, every time a screenshot is requested, use your computer's screenshot tool, and paste each screenshot to the same Word document. Label each screenshot in accordance to what is noted in the lab. This document with all of the screenshots included should be uploaded through Connect as a Word or PDF document when you have reached the final step of the lab. In this lab, you...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT