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S22 Foundations of Money > AGLS Exam 3- FLASHCARDS - Home buying part 2 > Flashcards

AGLS Exam 3- FLASHCARDS - Home buying part 2

1
Q

With what type of mortgage does the rate not change?

A

Fixed rate mortgage

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2
Q

With what type of mortgage do payment amounts not change?

A

Fixed rate mortgage

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3
Q

Wat type of mortgage allows for budgeting?

A

Fixed rate mortgage

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4
Q

What type of mortgage is the safest choice for most people?

A

Fixed rate mortgage

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5
Q

What type of mortgage has a low initial teaser rate?

A

Adjustable rate mortgage

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6
Q

What type of mortgage adjusts frequently afterwards?

A

Adjustable rate mortgage

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7
Q

What type of mortgage has complex rules and fees?

A

Adjustable rate mortgage

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8
Q

What is a periodic cap?

A

Max the interest rate can increase each adjustment period

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9
Q

What is negative ammortization?

A

Payments are less than interest due; unpaid interest is added to principal

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10
Q

What is a lifetime cap?

A

Max the interest rate can increase over the life of the loan

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11
Q

What is a payment cap?

A

Max payment amount allowed at any time

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12
Q

What is a lock-in agreement?

A

Agreement guaranteeing interest rate provided home closes within the period

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13
Q

What length mortgage is associated with lower payments?

A

15 year

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14
Q

What length mortgage is associated with higher chance of forclosure?

A

15 year

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15
Q

What length mortgage has a higher interest rate?

A

30 year

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16
Q

What length mortgage has lower interest paid?

A

30 year

17
Q

What are things you should consider when buying a new home?

A

Location, type, and lifestyle

18
Q

What are factors of location you should consider when buying a new home?

A

Safe and friendly community, quality schools, proximity to frequented places, and traffic (noise)

19
Q

What are factors of home type you should consider when buying a new home?

A

New or old, occupancy (single family, condo, townhome), one story or multiple, and number of bedrooms or bathrooms

20
Q

What are factors of lifestyle you should consider when buying a new home?

A

Who will live in the house, what you will do in it, if we will have pets, and lawn maintenance

21
Q

What is the first step to buying a new house?

A

Make an offer

22
Q

What percent should you consider the offer less than the asking price of the house?

A

5% less

23
Q

What might too much back and forth between offers do?

A

Kill the deal

24
Q

What is the second step to buying a new house?

A

Write a contract

25
Q

What should a contract include?

A

Price, method of payment, buyer and seller’s names, date of transfer, description of the property, a suitable funding clause, the portion of utilities taxes and insurance to be paid to the buyer and seller, expected condition of the home, and any other agreed upon contingencies

26
Q

What is the third step to buying a new house?

A

Earnest money

27
Q

What is earnest money?

A

A deposit on the home purchase to assure the seller that the buyer is serious about buying the house

28
Q

What is the fourth step to buying a new house?

A

Inspection

29
Q

When do you want your inspection done?

A

Soon after you make an offer

30
Q

What can you do if the inspector finds issues?

A

You can renegotiate your price, require the seller to resolve the issues, or walk away entirely

31
Q

What is the fifth step to buying a new house?

A

Appraisal

32
Q

What is an appraisal?

A

Confirms the home is worth the price

33
Q

What is the sixth step to buying a new house?

A

Final walk through

34
Q

What should you do before you close on the house?

A

Email the seller a list of what must be fixed or changed

35
Q

What is the last step to buying a new house?

A

Closing

36
Q

What is closing?

A

The time at which the title is transferred and the seller is paid in full for the house

S22 Foundations of Money (16 decks)

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