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REE 3043 Exam 4 questions with verified answers
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REE 3043 Exam 4 questions with verified answers
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REE 3043 Exam 4 questions with verifiedanswers
how long do you plan to stay in home
affordability
interest rates
alternatives used of down payments funds
home prices going up or down
tax consequences of home ownership - ✔✔factors of home vs. renting
_____________ how much less federal income tax will you pay b/c homeowner
tax deductible - ✔✔tax effect
If you sale a home and use a salesperson/broker, you will pay a sales commission
of 6.0% your home must have appreciated by at least 6% to break even -
✔✔true
Qualifying for a mortgage, you must qualify for both ratios - ✔✔mortgage
debt ratio .28
total debt ratio .36
Gross salary: 50,000
Mortgage debt: .28
Total= 14,000
, divide by 12 to get monthly
Results in 1,167 a month ( the bank doesn't want cost of housing to exceed this )
- ✔✔Mortgage Debt Ratio
Gross salary: 50,000
Mortgage debt : .36
Total : 18,000
Divide by 12 to get monthly
Gives you 1,500 a month. The bank does not want you total debt ( including
the cost of housing ) to be more than 1,500 a month. - ✔✔Total debt ratio
- school's
- property tax rate
- driving time to work
- crime in the area
- recreational amenities - ✔✔Things to consider about choosing an area
in which to buy a home.
- don't make late payments
- pay your creditors ( don't go more than 50% over your credit limit )
- build your credit
- if you are adding a lot of credit at the same time
- they look at what percentage of credit you're using.
- what is the mix of your credit? School loans, credit cards, auto loans, etc.
- ✔✔Components of a FICO score-
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