Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Consumer Economics MSU > Ch 12 Assessment > Flashcards

Ch 12 Assessment Flashcards

1
Q

Mortgage in which the interest rate changes periodically (i.e. annually); a way for banks to transfer the risk of higher interest rates to the consumer

A

Adjustable Rate Mortgage (ARM)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The value of a piece of property over and above any mortgage or liabilities related to it

A

Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

An interest rate that does not change over time

A

Fixed Rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

An asset rising in value, which helps one to keep up with the rising cost of inFa-tion; real estate can be a great inFation hedge

A

Inflation Hedge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Computer program used by real estate agents to search frequently updated listings of available prop-erties in order to find prospective homes for their clients

A

Multiple Listings Service (MLS)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Loan secured by the collateral of real estate property, which obligates the borrower to make a predetermined series of payments

A

Mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Original amount of money invested, excluding any interest or dividends; also called the face value of a loan

A

Principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A real estate professional who receives a com-mission for arranging and facilitating the sale of a property for a buyer or a seller. Also referred to as a real estate broker

A

Real Estate Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The appearance of a home from the street

A

Curb Appeal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

An agreement that ensures the structural soundness of a home

A

Home Warranty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A survey that shows where one’s property lines begin and end

A

Land Survey

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

An increase in value

A

Appreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

An individual who inspects homes for defects prior to the closing of a home sale to protect the buyer or lender’s investment

A

Home Inspector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Vacation property in which a company sells a small segment of time to a customer; the costs of running the property are shared among all of the owners who bought into the timeshare

A

Timeshare

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Used to release the home equity in a property. The homeowner either makes no payments and the interest is added to the lien of the property, or the homeowner receives monthly payments thereby increasing the debt each month.

A

Reverse Mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Biweekly mortgage payments that allow for one additional payment on your mortgage annually

A

Accelerated Payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Mortgage obtained through the Federal National Mortgage Association (FNMA), which insures against default; generally includes a down payment of 5–20% or more

A

Conventional Loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Policy paid by the mortgage borrower that protects the lender against loss resulting from default on a mortgage loan

A

Private Mortgage Insurance (PMI)

19
Q

Type of loan that is issued by the Federal Housing Authority; geared toward providing a mortgage to moderate- and low- income families that would not otherwise be able to afford a mortgage

A

Federal Housing Administration (FHA) Loan

20
Q

Type of mortgage in which the existing owner acts as the mortgage holder; payments are made to the owner rather than to a mortgage company or bank

A

Owner Financing

21
Q

Baby Step 1

A

1000 in emergency fund

22
Q

Baby Step 2

A

debt snowball

23
Q

Baby Step 3

A

3-6 months of expenses in savings

24
Q

Baby Step 4

A

`invest 15% of your household income into Roth IRA and retirement plans

25
Q

Baby Step 5

A

college funding for kids

26
Q

Baby Step 6

A

Pay off your home early

27
Q

Baby Step 7

A

Build wealth and give

28
Q

When selling a home you should think like a …

29
Q

True or False: The return on investment of fix-up dollars is small.

A

False, it’s enormous

30
Q

When selling your home, make sure it is listed on the

31
Q

True or False: The best real estate agents are worth more than they cost.

32
Q

True or False: Exposure through the Multiple LIstings Service is worth it

33
Q

You should always ___________ agents

34
Q

Offering a home warranty will typically not __________

A

make a sale

35
Q

Why is home ownership a great investment?

A

It is a forced savings plan
It is an inflation hedge
It grows virtually tax-free

36
Q

Always get a _________ if buying more than a standard subdivision lot

A

land survey

37
Q

___________ are an “opinion of value”

A

appraisals

38
Q

Do not buy…

A

trailers, mobile homes, timeshares

39
Q

The best mortgage is the _____% down plan

40
Q

Get a payment of no more than ____% of your take-home pay on a ____-year fixed-rate loan, with at least ____% down.

A

25, 15, 10

41
Q

True or False: Interest only loans are a good idea

A

False, bad idea

42
Q

Horrible Mortgages Options:

A

ARMS, Reverse Mortgages, Accelerated or Biweekly Payoff, Tax Advantage of a Mortgage

43
Q

PMI stands for

A

Private Mortgage Insurance

44
Q

u are done

Consumer Economics MSU (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions