Mortgages and Home Ownership Answers
10 verified answers
1
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The chart shows the costs associated with the purchase of a new home.
A
It is too expensive for most people to buy a new home.B
There are additional fees and costs involved in taking out a mortgage.C
Making a down payment means taxes do not have to be paid.D
Fees and taxes make up about 50 percent of the costs of buying a home.2
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Which accurately describes the terms of this mortgage? Check all that apply.
A
The homeowner is borrowing $360,000.B
The monthly interest rate is 4 percent.C
Monthly payments must be made for 30 years.D
The annual interest rate is 4.8 percent.E
The homeowner is borrowing $200,000.F
Monthly payments must be made for 360 years.3
People most likely need to take out a mortgage when they
A
have bad credit.B
are making a large purchase.C
are spending less than $1,000.D
have legal problems.4
Homeowners typically pay property taxes to
A
reduce the amount of their mortgages.B
avoid having to make a down payment.C
help finance state and local governments.D
help finance the campaigns of politicians.5
A balloon payment mortgage makes the best sense for borrowers who are
A
fearful of taking risks when borrowing money.B
planning on selling their homes before the term of the loan ends.C
looking to avoid borrowing money from banks.D
anticipating losing their jobs in the next few years.6
The chart shows the costs associated with the purchase of a new home.
A
cost of making repairs to the new home.B
fees that must be paid to local schools.C
costs associated with obtaining the loan.D
fees assessed by the state or local government.7
Borrowers choosing an adjustable-rate mortgage
A
pay a higher interest rate during the first few years.B
are often forced to sell their homes after the first year.C
often pay a lower interest rate during the first few years.D
agree to accept no risk when borrowing money.8
When people take out a mortgage, they must pay back the money
A
when they are able.B
within a year.C
over time, usually many years.D
as soon as they can.9
An adjustable-rate mortgage is one that
A
can change.B
stays the same.C
only goes up.D
only goes down.10
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interestB
feeC
pointD
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