Dave Ramsey Chapter 12: Real Estate
and Mortgages Questions and Answers
Latest Version Already Passed
What is one of the first steps to take before buying a home?
✔✔ Save for a down payment and have a solid emergency fund.
What type of mortgage does Dave Ramsey recommend?
✔✔ A 15-year fixed-rate mortgage.
Why is it important to get pre-approved for a mortgage?
✔✔ It helps you understand what you can afford and shows sellers you’re a serious buyer.
What should your mortgage payment not exceed?
✔✔ 25% of your monthly take-home pay.
Why should you avoid adjustable-rate mortgages (ARMs)?
✔✔ The interest rate can increase, leading to higher payments over time.
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, What is the benefit of making a larger down payment on a home?
✔✔ It reduces the amount you need to borrow, saving you money on interest.
What is the 15-year mortgage preferred over a 30-year mortgage?
✔✔ It allows you to pay off the loan faster and save on interest over time.
Why is it important to shop around for a mortgage lender?
✔✔ Different lenders may offer different rates, and shopping around helps you find the best
deal.
What is the purpose of private mortgage insurance (PMI)?
✔✔ It protects the lender if you default on the loan, but it adds to your monthly payment.
What is one of the key factors that determines the price of a home?
✔✔ Location, as it impacts property value, taxes, and amenities.
Why is it important to have an emergency fund before purchasing a home?
✔✔ An emergency fund provides a safety net for unexpected expenses after buying a house.
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and Mortgages Questions and Answers
Latest Version Already Passed
What is one of the first steps to take before buying a home?
✔✔ Save for a down payment and have a solid emergency fund.
What type of mortgage does Dave Ramsey recommend?
✔✔ A 15-year fixed-rate mortgage.
Why is it important to get pre-approved for a mortgage?
✔✔ It helps you understand what you can afford and shows sellers you’re a serious buyer.
What should your mortgage payment not exceed?
✔✔ 25% of your monthly take-home pay.
Why should you avoid adjustable-rate mortgages (ARMs)?
✔✔ The interest rate can increase, leading to higher payments over time.
1
, What is the benefit of making a larger down payment on a home?
✔✔ It reduces the amount you need to borrow, saving you money on interest.
What is the 15-year mortgage preferred over a 30-year mortgage?
✔✔ It allows you to pay off the loan faster and save on interest over time.
Why is it important to shop around for a mortgage lender?
✔✔ Different lenders may offer different rates, and shopping around helps you find the best
deal.
What is the purpose of private mortgage insurance (PMI)?
✔✔ It protects the lender if you default on the loan, but it adds to your monthly payment.
What is one of the key factors that determines the price of a home?
✔✔ Location, as it impacts property value, taxes, and amenities.
Why is it important to have an emergency fund before purchasing a home?
✔✔ An emergency fund provides a safety net for unexpected expenses after buying a house.
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