FFM – exam Quizzes Complete Solutions
2025
Most common type of credit - ANSWER open ended credit
- Credit cards
-Banks, retailers etc
upside down - ANSWER when you owe more than something is worth/ capital asset is
worth less
another word for money - ANSWER equity and capital
18% of family budget - ANSWER cars/ transportation
Leasing cars - ANSWER usually 3 year contract and Average 15k miles a year- if you do
more than that they will charge you extra
35% of family budget - ANSWER housing
PITI - ANSWER -PITI: principal interest taxes and insurance
-mortgage is based on PITI
Selling a house - ANSWER -More sale by owner
-Realtor charges 6% to sell the house
-Moving expenses should be considered (they can be expensive!)
2.5 times rules - ANSWER -Buy a house 2.5 times more than your income
2025
Most common type of credit - ANSWER open ended credit
- Credit cards
-Banks, retailers etc
upside down - ANSWER when you owe more than something is worth/ capital asset is
worth less
another word for money - ANSWER equity and capital
18% of family budget - ANSWER cars/ transportation
Leasing cars - ANSWER usually 3 year contract and Average 15k miles a year- if you do
more than that they will charge you extra
35% of family budget - ANSWER housing
PITI - ANSWER -PITI: principal interest taxes and insurance
-mortgage is based on PITI
Selling a house - ANSWER -More sale by owner
-Realtor charges 6% to sell the house
-Moving expenses should be considered (they can be expensive!)
2.5 times rules - ANSWER -Buy a house 2.5 times more than your income
