Studied by 3 peopleT or F Mobility is a common advantage with home ownership
False!
T or F Most people select a place of residence based on financial means and lifestyle
True
T or F Amortization refers to changes in the interest rate for variable written mortgages
False
T or F the amount of the down payment will affect the amount of the mortgage a person can afford
True
T or F Negotiating a purchase price of a home usually involves an offer and a counteroffer
True
T or F Many people believe that location is the most important factor in considering a home
True (Location location location!)
T or F Opportunity costs are the things someone must sacrifice in order to make a decision
True
T or F the goal of making as much money as I can is an acceptable financial goal
False
T or F Financial planning, by definition, is finding ways to spend your money
False! You'll find ways to do that
T or F a balloon mortgage can help a home buyer when interest rates that are high are expected to come down in the future
True
T or F money going out should be greater than money going in
False
T or F The ability to convert your investment into cash quickly is called inflation
False
T or F Disposable income is the money left after basic needs are purchased
False (disposable is after taxes discretionary is after needs are met)
T or F JFK was responsible for the original consumer bill of rights
True
The first step in decision making model
Identify the problem
The last step in a decision making model is
Evaluate your decision
The most difficult step in decision making model
Act on your choice
Which one of these is necessary for a valid contract?
All of the above
Which one of these is not a consumer bill of right?
None of the above
Whats the 70/20/10 Rule
70 spending 20 is saving 10 is investment
The legal document involved with renting an apartment is called
A lease
Renting would be most appropriate for people who:
Have limited funds currently available
A cost associated with home buying would be
Property taxes
Restrictions on property in the area that can be used are
Zoning laws
A common financial risk to homeownership is
Property values may decrease
The purpose of a security deposit is to
Pay for potential damages
If you sell your home without the use of a real estate agent you should still make use of a
Lawyer
Give me two actions you should take in order to be smart with dealing with contracts
Read it! Lawyer up
Who were the other two presidents who added to the consumer bill of rights
Nixon AND Clinton!
What is a 50/30/20 budget?
50% needs, 30% wants/fun (Like yoga!), 20% savings
Note
Flashcard