1. It's advisable to always take the biggest loan that a lender will give you.

2. Smart buying means buying what you want first and figuring out how you'll pay for it later.

3. A loan origination fee is a fee paid to the lender, generally in the $1,200 to $1,300 range, and covers some of their costs of processing and finalizing the loan.

4. What is not a benefit normally associated with home ownership?

5. As a general rule, your PITI shouldn't exceed 28% of your pretax monthly income.

6. If you are not yet committed to living in a particular geographic region, rental housing is a good option for you.

7. A subprime mortgage is a mortgage with an APR below the prime rate.

8. You can only get an ARM loan from a predatory lender.

9. Because a co-op is technically not a 'home' it does not charge a homeowner's fee.

10. Tran currently makes $4,500 per month in gross income- He has a student loan payment of $250 per month and a car loan of $450 per month- His credit card payments average $300 per month. What is the largest PITI he could qualify for with a reputable lender?

11. If you are considering purchasing a used car you should

12. How does a consumer avoid predatory lending?

13. An adjustable rate mortgage (ARM) is always a wise financial decision for young consumers because their incomes will be adjusting as well.

14. The monthly payments on a 36-month lease on a car will often be smaller than the monthly payments on a 36-month loan to purchase the car.

15. Bob and Mary Kay have gross household income of $7,000 per month- They both have great credit scores and the home they are interested in buying appraised higher than the selling price. They have combined monthly debt payments of $300 in student loans, $650 in car loans, and they pay their credit cards in full every month- The PITI on the new home will be $1,800 per month- Before they pay the $250 loan application fee, they are asking you for your opinion on whether they will get approved for a mortgage- What will you advise them?

16. Which should you consider when house hunting?

17. You have an option on an ARM that has a two-year adjustment interval, 4% margin, 2% periodic rate cap and a 6% lifetime cap- The current initial rate is 5.35%- You can also get a 30-year, fixed-rate mortgage for 6.65%- You plan on staying in this home for at least 10 years. What would be your best choice?

18. The largest cost associated with renting a home is the rent itself.

19. In many states rental deposits are to be kept in a bank account separate from the landlord's general funds.

20. Stretching a car loan from 48 months to 60 months means the car will end up costing you more when you have paid in full.

21. Subprime mortgages are mortgages taken out by people with low credit scores.

22. Buying a home generally isn't desirable if you don't intend to stay in it for more than two or three years.

23. The best time to get an ARM is when the market rates of interest are high.

24. One of the main barriers to home ownership is the down payment.

25. If you have just been transferred to a new city and plan to live in your new location for many years, buying a house is generally a better option than leasing for the first year.