last chp

Question 1

what should you think like when selling a home?

Answer 1

a retailer

Question 2

What should you think like when selling a home?

Answer 2

A retailer

Question 3

What condition should your home be in to sell?

Answer 3

Near perfect

Question 4

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

Answer 4

near perfect

Question 5

what is the return investment on fix-up dollars?

Answer 5

enormous

Question 6

what is the most important aspect of preparation in house selling

Answer 6

attention to the curb appeal

Question 7

where should you make sure your house is listed?

Answer 7

on the internet

Question 8

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

Answer 8

true

Question 9

What is MLS

Answer 9

multiple listing service

Question 10

what should you not use as your realtor?

Answer 10

friends or family

Question 11

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

Answer 11

a home warrenty

Question 12

what three reasons is homeownership a great investment?

Answer 12

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

Question 13

what does title insurance insure you against?

Answer 13

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

Question 14

when should you get a land survey?

Answer 14

when buying more than a standard subdivision lot.

Question 15

what are homes priced on?

Answer 15

LOCATION

Question 16

where should you buy a house near?

Answer 16

water or a view

Question 17

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

Answer 17

bad landscaping, outdated carpet, wallpaper, Elvis paintings.

Question 18

what should you not overlook when buying a house?

Answer 18

street appeal and good basic floorplan

Question 19

What is an appraisal?

Answer 19

an opinion of value

Question 20

What homes should you not buy?

Answer 20

trailers, mobile homes, timeshares.

Question 21

What should you remember to hate?

Answer 21

debt

Question 22

What is the best mortgage?

Answer 22

100% down

Question 23

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

Answer 23

out of debt and a fully-funded emergency fund

Question 24

what does renting demonstrate?

Answer 24

patience and wisdom

Question 25

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

Answer 25

25% 15 year 65%

Question 26

Whats ARM?

Answer 26

adjustable-rate mortgage

Question 27

What were arms brought on by?

Answer 27

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

Question 28

What is the concept of the ARM?

Answer 28

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

Question 29

Why are interest-only loans a bad idea?

Answer 29

you are only paying the interest.

Question 30

What are terrible mortgage options?

Answer 30

``` ARM interest-only loans reverse mortgage accelerated bi-weekly payoff ```

Question 31

why are reverse mortgages a bad idea?

Answer 31

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

Question 32

why is accelerated a bad idea?

Answer 32

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

Question 33

What are the basic ways to finance a home?

Answer 33

conventional FHA VA Owner

Question 34

What do down payments range from in conventional?

Answer 34

5% to 20%

Question 35

Whats FNMA

Answer 35

Federal National Mortgage Association.

Question 36

What's PMI

Answer 36

Private Mortgage insurance

Question 37

what are down payments on FHA

Answer 37

3%

Question 38

Why should FHA loans be avoided?

Answer 38

they are currently more expensive than conventional financing.

Question 39

Whats VA

Answer 39

veterans association

Question 40

how does VA work?

Answer 40

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

Question 41

what is owner financing?

Answer 41

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

Question 42

why is owner financing a great option?

Answer 42

you can be creative in the structure of the loan.

Question 43

what should your house payment never be more than?

Answer 43

25%

Question 44

What two loans should you really avoid?

Answer 44

ARM and Interest only

Question 45

mortgage

Answer 45

loan secured by the collateral of a specific real estate property

Question 46

equity

Answer 46

the value of your house over and above the mortgage

Question 47

principal

Answer 47

the face value of your mortgage, not including interest

Question 48

MLS

Answer 48

listing services realtors use

Question 49

title insurance

Answer 49

protects you against an ownership claim

Question 50

home warranty

Answer 50

an agreement that ensures the structural soundness of a home

Question 51

land survey

Answer 51

shows where line property lines are

Question 52

appreciation

Answer 52

an increase in value.

Question 53

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

Answer 53

20%