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Okay… Anyone that knows anything about home finances should be able to answer these questions. 10 points best answer! It’s okay if you don’t answer all of them, just whatever you can!

Personal Financial Planning
Meeting Housing Needs

Please answer the questions.

1)What are four options for housing? Define each.

2)Explain the statement “the home as a tax shelter”?

3)Explain the statement “the home as an inflation hedge”

4)Define Each

a.Prequalification
b.Earnest Money Deposit
c.Contingency Clause
d.MLS
e.RESPA – (what is it?)

5)What is PMI? When do you have to pay it?

6)What are points and closing costs?

7)What is the most a mortgage company/bank will loan you expressed as a percentage of your monthly take home income? (assuming you have no other installment loans)

8)What are three reasons why people would choose to rent?

9)Explain the statement “agents are typically employed by the seller”.

10)What is a title check?

11)What is the difference between a fixed rate and an adjustable rate mortgage? Balloon-Payment Mortgage?

12)What are the basics you need to understand before financing your home with an ARM? Define Each

a.Adjustment Period
b.Index Rate
c.Margin
d.Interest Rate Caps
e.Payment Caps
f.Negative Amortization

13)When would a customer choose an ARM instead of a fixed rate mortgage?

14)What is the interest rate on a 15 and 30 year fixed rate mortgage? Use the internet.

15)What is a sub-prime mortgage? Use the internet. What is the rate for these types of loans?

16)What is a non income verification mortgage? Use the internet. What is the rate for these types of loans?

17)What is a jumbo mortgage? Use the internet.

18)How can someone finance a home 100% with a mortgage? Use the internet.

19)What is an FHA mortgage?

What the hell?

I really hope that is homework or something, in any case I like the advice "Use the internet"