1. Jackie is considering obtaining a mortgage of $333,000- A lower APR is available, but she must pay 1.75 points to buy the rate down- How much must Jackie pay in dollars?

2. Abraham is buying a new truck- The sale price for the truck is $23,410- His bank is loaning him the money at an APR of 6.5 for 5 years- How much will Abraham's monthly truck payment be?

3. Congratulations! You have just agreed on the final price for your new car and now you have to finance the purchase- The negotiated price of the new car is $18,500 and you will receive $5,500 for your trade-in- What will your monthly payment be on a 48-month loan with a 7% APR?

4. If the roof of your condominium building needs expensive repairs, then the condominium board will pay for repairs at no expense to you.

5. PITI stands for the total of your monthly principal, income, taxes, and insurance.

6. 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?

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

8. From a financial perspective, the decision of whether to rent or buy is tied to how long to plan to live in the home.

9. The first step at the car dealership is to negotiate the best price that you can on the car that you need.

10. You disagree with Ed 'Shifty' Smith, a car salesperson, on the price of an open-end lease- He says the depreciation charge is only $6,000- What is the actual depreciation charge for a car now worth $23,000 that is expected to drop in value to $15,000 in two years?

11. 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.

12. When following smart buying to purchase a home you should

13. A co-op would be a wise choice for a consumer who wishes to pay no property taxes.

14. The rate cap on an ARM protects the borrower.

15. When you decide to buy a home, which of these questions should be answered?

16. A title search fee is paid to an attorney or title company for searching ownership records to make sure the person selling you the property really owns it.

17. The typical down payment is 20% for traditional mortgage loans.

18. Which of these is not an advantage associated with an assumable loan?

19. The Internet can help you research neighborhoods and find a community in which you'd like to live.

20. How can you benefit from following the smart buying steps?

21. Abigail is financing her first home- She is borrowing $125,000- Her bank is loaning her the money for 15 years at an APR of 5.7%- What will Abigail's monthly mortgage payment be?

22. The safest place to get a mortgage is at your bank, credit union, or savings and loan institution.

23. A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

24. You are planning on starting your own business in 18 months and you intend to purchase a new home- You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month- Your banker has told you that you can easily qualify for a PITI of $1,150 per month- Which of the following is the most reasonable explanation for this discrepancy?

25. Someone who plans on selling his or her home within the next 3 years should get a fixed -rate mortgage.