Week 14 Personal Finance Questions and Answers Already Passed

Week 14 Personal Finance Questions and Answers Already Passed Before considering buying a house, you should make sure you are in sound financial shape. Choose from the list below some of the things you should do in order to be prepared to purchase a house. Shop for interest rates that are available and identify any necessary pre-qualifications, Look into special financing for first-time home buyers and explore federally subsidized loans, Be aware of your credit rating and take steps to improve it When shopping for a house, there are tips you can use to help your effort be more successful. Choose all of the tips below that are effective in making your search for a new home an easier process. Use online mortgage calculators and amortization schedules to help you with working out possible payments, Give the real estate agent a detailed list of what you want in a house (number of bedrooms, baths, levels, yard, and other specifics), Look for houses in your price range and budget, Think about the future, including both the needs of your family and possible income increases, Decide on areas where you would like to live and visit these at different times of day to observe traffic patterns and other factors, Choose a good real estate agent. According to Ron Blue, the best type of mortgage to get is: The shortest one with the lowest interest rate How much of a down payment will you be expected to put down toward the appraised value of the home you plan to purchase? 10-20% Choose all items listed that are potential costs associated with owning a home. utilities such as electricity, gas, water, cable, and others, property taxes -- either paid yearly or assessed through escrow payments, HOA fees, garbage collection fees, and landscaping fees, hazard insurance and/or PMI (Private Mortgage Insurance), maintenance and repairs not covered in the closing settlement HVAC (Heating and air conditioning) Hot water heater 250-1500 Dishwasher 300-1000 Garbage disposal 100-400 Refrigerator 600-3000 Washer or dryer 400-1200 HOA fees cover which of the following? garbage, insurance, maintenance, sewer, landscaping, water if you put less than _____ down you will be required to carry Private Mortgage Insurance (PMI) until you have paid down your mortgage principle to a suitable balance. 20% The cost of utilities is often included in the price when you purchase your home. false In order to begin managing your debt, it is important to start with a manageable budget. What are the things most financial advisors consider essential for daily living? Choose all applicable answers. insurance, food, housing, health care, education When should you contact your creditors if you are having any problems meeting your debts? immediately Creditors that need to collect on debts have certain rights, but they cannot harass you or violate your rights. Select all actions that creditors cannot do when trying to collect a debt. call you after 9:00 p.m, use any unfair practices such as lying, call you at work if your employer doesn't approve, call you before 8:00 a.m, harass you Secured debts are usually connected to some sort of ___________________. asset like car or home If personal debt gets out of hand and something needs to be done, what is one of the best sources you can go to for help? a reputable credit counseling organization Unsecured debts are debts that are not tied to any collateral or major personal property that can be repossessed or processed for foreclosure. Choose all below that fall into this category. medical bill, personal signature loans, credit card debt, store credit accounts One way to manage debt that is out of control is by considering a debt consolidation loan. These types of loans can be a ___________ or a home equity line of credit . Although these may help with high debt, they also require some sort of ___________ that could be ___________ if you are unable to make your payments. In addition to interest, you may be required to pay ___________ , the cost of which is based on the amount you borrow and is added to the cost of your loan. Unlike other loans, these types of loans usually provide some ___________. second mortgage, home equity line of credit, collateral, repossessed, points, tax advantages Chapter 13 Bankruptcy This allows people that have a steady income to keep some property such as a car and home. The court approves a repayment plan that allows the use of future income to pay off debts. Chapter 7 Bankruptcy This is known as straight bankruptcy and involves liquidating all assets that are not exempt. Anyone filing for this kind of bankruptcy must satisfy a "means test" that investigates their income closely. Both kinds of bankruptcy may help stop procedures related to _____________________. foreclosures, utility shut-offs, garnishments, repossessions Bankruptcy is an option for those deep in debt. Consequences can be _____________ . The court grants a _____________e that exempts those filing for bankruptcy from paying certain debts. A bankruptcy filing can stay on your credit report for _____________ and can have a negative impact _____________ . long-lasting and far-reaching, discharge, ten years, when you apply for other credit or getting a job In the video by Ron Blue, he advises individuals to do the following if they are in a financial crisis situation: cut back on expenses to the bare minimum, use cash to pay off debt, make a budget