Personal Finance Housing and Financial Planning

T 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