Random
What single area does the average American spends the most money?
Housing
Before you step on a car dealer’s lot or explore the various car selling websites, what are the two questions you should answer first?
How much cash you have for a down payment
How much money do you have in your budget for a monthly car payment?
Harry Potter is going to Illinois University to major international business and wants to move to California after college. When looking for housing, should he rent or buy?
Rent
What is the correlation between the size of your down payment and how much you pay for the car/house/etc. overall?
The larger the down payment, the less you pay for the car/house/etc. Overall.
What is one disadvantage of buying a house?
Large down payment
High move-in costs
Pay for repair and maintenance costs
This is the large, one-time payment you make at the beginning of a home loan to lower the total amount you have to borrow.
A down payment
In terms of car insurance, which type is required by law?
Liability
A legal contract between the tenant and the landlord, specifying the responsibilities and rights of both parties is called a…
Lease
What are the characteristics of a conventional house mortgage?
20% Down
15-20-30 year mortgage
No mortgage insurance paid monthly
What is one advantage to renting an apartment?
Low move-in costs
Easy to move
Less maintenance and repair work
The concept that you own a higher and higher percent of an asset (house, car, etc.) the more payments you make on it is called…
Equity
Insurance is important because it…
Transfers and shares risk
What percent does conventional wisdom advise you to put down when purchasing a house?
20%
When dealing with loans or credit cards, what is APR?
Interest Rate
What is one disadvantage of renting an apartment?
Many require good credit
Less privacy
No equity
If you are in a car accident, this type of insurance covers the damage to your own vehicle.
Collision insurance
What type of car insurance will pay to fix/replace your car after an accident?
Collision
When deciding to move out of your parents’ house, there are many things to consider, however the most important element that you must decide first is...
How much I can afford
A second individual that agrees to pay back the loan if the borrower is unable to do so.
Co-Signer
What is one advantage to buying a house?
Build equity
More privacy
More room and storage
Allows the borrower to make payments before the due date to reduce the amount of interest paid
Prepayment Privilege
$2,500 (damages)
- $500 (____)
-----------------------
=$2,000 (insurance company responsibility)
Insurance Deductible
An advance payment to cover anything beyond normal wear and tear on a rental unit is called…
Security Deposit
What are the characteristics of a non-conventional (FHA or USDA) house mortgage
Additional mortgage insurance that had to be paid monthly
Minimal percentage (0-10%) as a down payment
Besides the price and how it looks, __________ is another important element to consider when purchasing a vehicle.
safety, reliability, MPG, mileage