Mortgages and Home Ownership
Terms in this set (10)
A balloon payment mortgage makes the best sense for borrowers who are
planning on selling their homes before the term of the loan ends.
Which accurately describes the terms of this mortgage? Check all that apply.
Monthly payments must be made for 30 years.
The annual interest rate is 4.8 percent.
The homeowner is borrowing $200,000.
In a mortgage, the amount of money borrowed is called the
If someone buys a home for $200,000 and makes a 20 percent down payment, that person will have to
pay $40,000 up front.
Many people prefer a fixed-rate mortgage because it
What best explains the relationship between a borrower's credit score and a down payment requirement?
Someone with a high credit score may be required to make a lower down payment.
When people take out a mortgage, they must pay back the money
over time, usually many years.
According to the terms of the sample balloon payment mortgage, what will most likely occur at the end of the regular payment term?
the remaining principal of $173,073 will be due immediately
Homeowners typically pay property taxes to
help finance state and local governments.
What is the best conclusion that can be drawn from the information in the chart?
There are additional fees and costs involved in taking out a mortgage.
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