This type of mortgage allows homeowners who are 62 or older to borrow from their home's equity?

Revese mortage

If you don’t put 20% as a down payment on a home purchase, the lender will require you to carry _____ to protect themselves financially.

private mortage inssurance

If you buy a new car for $40,000 and it depreciates 25% the first year and 17.5% the second year, what is your car worth at the end of the second year?

24,750

How much does a new car depreciate in the first year?

%25

The primary advantage of this loan is that borrowers can receive 100% financing for the purchase of a home.

VA loan

If Jill's income is $6,000/mo and she currently has $800/mo in other debt payments, how much monthly payment towards a home loan would the bank likely be willing to issue as a mortgage for a home purchase?

136,000

What is true about a variable interest rate mortgage?

The interest rate varies during the length of the loan

Can also be called an ARM (Adjustable Rate Mortgage)

What is it called when a business prices an item below cost to get consumers in the store to buy other items?

Loose leader

It is often better to rent instead of buying a home when you only plan living there for?

3 years or less

How much should you spend on a car?

Less than 15-20% of your paycheck

The majority of Americans purchase their home with a ___ year mortgage.

30

Karina was thinking about buying a new car and asked you what the biggest cost would be? Since you aced finance class, you tell her the biggest cost is?

Depreciation

Camden is looking at buying a condo downtown but does not want to pay PMI (Private Mortgage Insurance). How much of a down payment does Camden need so he does not need to pay PMI?

%20

Your home mortgage payment typically includes all of the following except…

Sales tax

When buying a new car, you typically have higher

Depreciation

What type of vehicle would typically have higher repair costs on a yearly basis?

Use car