What should you do first at a car dealership: ask for the price or test drive?
Test drive first. This way, the salesperson can't maneuver you into making a premature commitment to the car.
100
Can you finance the down payment on a house? (i.e. can you take a loan on the down payment).
No, the down payment must be paid in cash
100
What is the best FICO score (credit score) that you can have?
850
100
What is a mortgage?
A type of loan taken from a bank, usually to help finance property purchases
100
What is the name of the contract that an insured person makes with the insurer
Insurance Policy
200
What happens to the value of a car the minute you buy it and drive away?
The value decreases. It is now a "used" car.
200
What do lenders require before buying a house? (Hint: a type of insurance)
Homeowner's Insurance
200
With "depreciation," does value go up (incline) or down (decline)
There is a decline in value over time
200
Name the four basic parts of a mortgage (PITI)
Principal, Interest, Taxes, Insurance
200
What age group pays the highest rates for car insurance? (Young, Middle Age, Old)
Young people
300
What the name for an agreement where you only pay for a portion of the car's value for the time that you use it?
Car Lease
300
What do you have to pay if you cannot make a 20% down payment on a house?
Private Mortgage Insurance (PMI)
300
What are the fees paid to a lender and computed as a percentage of the loan called?
Points
300
What is one of the main things that impacts the interest rate you get on a mortgage?
Your credit score
300
Is Liability Insurance required to own a car in New York?
Yes, it is required.
400
When can you stop making a payment on a car?
When the car is fully paid off (including principal, interest, and related fees)
400
Once you start paying Private Mortgage Insurance (PMI), how long do you have to continue paying it?
Usually you need to keep the PMI for at least two years. If you have paid 20-25% of the value by then (i.e. you have obtained 20-25% equity), you can cancel the PMI
400
What are some advantages of renting (over buying)
Answers can include: flexibility to move, low maintenance (landlord's problem), fewer additional expenses (besides rent and cable/electricity/other bills), low commitment
400
What can happen when a person defaults (fails to pay) their mortgage payments on a property?
The mortgage lender can foreclose, or repossess the property
400
What is the name of something that helps guard against having to pay for major repairs?
Extended Warranty
500
What is the name for the amount paid to a state to use a car?
Car Registration Fee
500
Are closing costs paid before or after taking ownership of a house?
Before. They involve various fees paid before possessing a home.
500
What are some advantages of buying (over renting)
Answers can include: return on investment (building equity - your money isn't "lost"), control over house decisions, possible tax benefits
500
How do you calculate equity?
Market value of property minus mortgage amount still owed
500
What is the primary purpose of insurance?
To manage risk, or to protect yourself from financial loss