1 Which of the following is not a step toward purchasing an automobile?

1 Which of the following is not a step toward purchasing an automobile?

Determine affordability

Shop for financing

Analyze needs versus wants

Make a preliminary offer

2 When picking out a car and determining needs versus wants, a person should ask him or herself all of the following questions except:

How much cargo do you carry?

Do you want a manual or automatic transmission?

Do you need two-wheel drive, all-wheel drive, or four-wheel drive?

All choices are correct.

3 How much of a down payment do lenders require when purchasing a car?

10%

15%

20%

40%

4 What is the disadvantage to buying a home?

The value of your house may increase.

Eventually, you will be able to live payment-free.

The value of your house may decrease.

You will gain equity by paying down your mortgage.

5 What is a mortgage?

The legal document used to allow a lender to use real property as collateral

The difference between what is owned vs. what is owed

The transfer of a lease agreement to a new tenant

All of the choices are incorrect.

6 Most lenders require how much of a down payment for a house?

30%

40%

20%

No down payment

7 Why might you have to pay private mortgage insurance (PMI)?

You had more than three traffic violations in the past year.

You put down less than 20% on your home.

You live in a high-risk neighborhood.

You have a history of defaults.

8 What does HELOC stand for?

Health expense license of California

Home equity line of credit

Home equity liquidation of credit

None of the answers are correct.