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Economics > last chp > Flashcards

last chp Flashcards

1
Q

what should you think like when selling a home?

A

a retailer

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2
Q

What should you think like when selling a home?

A

A retailer

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3
Q

What condition should your home be in to sell?

A

Near perfect

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4
Q

what condition should a home be in when trying to sell?

A

near perfect

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5
Q

what is the return investment on fix-up dollars?

A

enormous

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6
Q

what is the most important aspect of preparation in house selling

A

attention to the curb appeal

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7
Q

where should you make sure your house is listed?

A

on the internet

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8
Q

statistical researchers have found that the best realtors are worth more than they cost. true or false

A

true

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9
Q

What is MLS

A

multiple listing service

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10
Q

what should you not use as your realtor?

A

friends or family

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11
Q

what should you not offer for it will not typically make a sale

A

a home warrenty

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12
Q

what three reasons is homeownership a great investment?

A

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

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13
Q

what does title insurance insure you against?

A

an unclean title, which is when your proper ownership is in question.

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14
Q

when should you get a land survey?

A

when buying more than a standard subdivision lot.

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15
Q

what are homes priced on?

A

LOCATION

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16
Q

where should you buy a house near?

A

water or a view

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17
Q

what do you need to overlook to get a good house bargain?

A

bad landscaping, outdated carpet, wallpaper, Elvis paintings.

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18
Q

what should you not overlook when buying a house?

A

street appeal and good basic floorplan

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19
Q

What is an appraisal?

A

an opinion of value

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20
Q

What homes should you not buy?

A

trailers, mobile homes, timeshares.

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21
Q

What should you remember to hate?

A

debt

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22
Q

What is the best mortgage?

A

100% down

23
Q

When are you ready to buy? what two steps should you have completed?

A

out of debt and a fully-funded emergency fund

24
Q

what does renting demonstrate?

A

patience and wisdom

25
Q

get a payment of no more than __ of your take-home pay on a ___ fixed-rate loan, with at least ___ down.

A

25%
15 year
65%

26
Q

Whats ARM?

A

adjustable-rate mortgage

27
Q

What were arms brought on by?

A

the advent of high-interest rates in the early 1980s

28
Q

What is the concept of the ARM?

A

to transfer the risk of higher interest rates to the borrower and in return, the lender gives a lower rate up front.

29
Q

Why are interest-only loans a bad idea?

A

you are only paying the interest.

30
Q

What are terrible mortgage options?

A 
ARM
interest-only loans
reverse mortgage
accelerated
bi-weekly payoff
31
Q

why are reverse mortgages a bad idea?

A

you are putting a paid-for home at risk and the fees are horrible.

32
Q

why is accelerated a bad idea?

A

allows you to make a payment every two weeks which equals 13. you make one extra payment a year.

33
Q

What are the basic ways to finance a home?

A

conventional
FHA
VA
Owner

34
Q

What do down payments range from in conventional?

A

5% to 20%

35
Q

Whats FNMA

A

Federal National Mortgage Association.

36
Q

What’s PMI

A

Private Mortgage insurance

37
Q

what are down payments on FHA

A

3%

38
Q

Why should FHA loans be avoided?

A

they are currently more expensive than conventional financing.

39
Q

Whats VA

A

veterans association

40
Q

how does VA work?

A

benefit the veteran. the seller pays everything allowing for a true zero down purchase.

41
Q

what is owner financing?

A

is when you pay the owner over time, making him/her the mortgage holder.

42
Q

why is owner financing a great option?

A

you can be creative in the structure of the loan.

43
Q

what should your house payment never be more than?

A

25%

44
Q

What two loans should you really avoid?

A

ARM and Interest only

45
Q

mortgage

A

loan secured by the collateral of a specific real estate property

46
Q

equity

A

the value of your house over and above the mortgage

47
Q

principal

A

the face value of your mortgage, not including interest

48
Q

MLS

A

listing services realtors use

49
Q

title insurance

A

protects you against an ownership claim

50
Q

home warranty

A

an agreement that ensures the structural soundness of a home

51
Q

land survey

A

shows where line property lines are

52
Q

appreciation

A

an increase in value.

53
Q

how much do you need for a down payment to avoid paying PMI

A

20%

Economics (7 decks)

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