Section 9

Question 1

4 benefits of buying a house

Answer 1

1. portion of mortgage pmt becomes equity
2. Owner keeps price appreciation
3. pride of ownership
4. owner may make home improvements

Question 2

4 benefits of renting

Answer 2

1. flexibility when moving in
2. minimal Amt of a deposit initially
3. no maintenance worries
4. rent pmts are lower than mortgage pmts

Question 3

The lender evicting the non-paying borrower of the house and selling the house in order to pay the mortgage

Answer 3

foreclosure

Question 4

A standardized document that lists all the charges and credits for a buyer and seller in a real estate transaction or mortgage refinance.

Answer 4

HUD-1

Question 5

Value of the home

Answer 5

home equity

Question 6

Home equity line of credit

Answer 6

HELOC

Question 7

Replacing an existing mortgage by obtaining a new mortgage and repaying the old one

Answer 7

refinancing your mortgage

Question 8

Other costs of home ownership

Answer 8

utilites

Question 9

Includes the title status, accident history, and owner status of a vehicle

Answer 9

vehicle history report

Question 10

vehicle information number

Answer 10

VIN

Question 11

Opportunity cost of buying a car that is too much cannot be

Answer 11

at the expense of your long term savings by too much

Question 12

Other costs of owning a vehicle

Answer 12

insurance, maintenance, cost of gas