Type in your answers … SAVE it on your computer … send it to the instructor (upload it), by the due date, using the correct DROP BOX on the ANGEL website. 1. What was your score on the “Home Buyers Quiz” (link #2) ? ___________________ 2. The article “BUY”, states that there are “ four keys to profitable home ownership”. Name TWO of them 3. What are TWO disadvantages or risks of owning your own home ? 4. According to the article “A Comprehensive Guide” when it comes to buying a house “Probably the most important step, and certainly the step you should take first, is to … “? What is that step? 5. According to the article “A Comprehensive Guide” there is a big difference between being “pre-qualified” and “pre-approved”. What is the difference between the TWO ? 6. The “principle of indemnity” underlies insurance law. Explain the principle of indemnity. 7. Assume that you see a home for sale that is listed by a Century 21 realtor. You call the local REMAX agent who shows you the home. For whom is the Century 21 realtor working (you the buyer or the home seller)… AND for whom is the REMAX agent working ? 8. What is a “short sale” as it pertains to real estate ? 9. According to the Additional Reading some foreclosures sell for 30% to 40% below market. However, “most foreclosures sell for ___ ?___ 10. What is PMI … AND who does it do ? 11. According to the article “Costly Buyer Mistakes” in what situation is it okay to buy a home without having a home inspection ? 12. In the article entitled “More Mistakes”, mistake #6 specifically tells you when you will make or lose money in real estate. When ? 13. What are THREE things that you can do now to get ready to buy a house? 14. Looking at the graphic illustrating the total interest paid over the life of the loan when it comes to “Financing the Purchase” how much interest would be paid on a 30-year $125,000 loan at 6% versus at 10%. 15. What is involved with “the process of underwriting” as it pertains to getting a mortgage? 16. What are THREE of the “Eight Tips to Help You Qualify” for a mortgage? 17. What are “points” … AND what is “title insurance”? 18. What are THREE things that are NOT covered by a typical homeowners insurance policy ? 19. What is the difference between Actual Cash Value versus Replacement Value? 20. In general, for what type of borrower would possibly use a subprime mortgage? Personal Financial Portfolio … Shopping for a Home and a Mortgage. Realtor.com Homes for Sale Luxury homes for Sale Luxury Homes - Worldwide Private Islands for Sale 1st … Find your “Dream Home” anywhere in the world (price range of at least 1 million) COPY a photo of the home and PASTE it at the top of the next page (resize it to about ¼ of the page) (For those of you who are “computer-challenged) How to copy of photo from a webpage How to resize an image or a shape in Word 2nd … Find the mortgage rate (30-year fixed) https://www.wellsfargo.com/mortgage/rates/ Using this link. 3rd … Use this to develop an amortization schedule http://www.hsh.com/calc-amort.html Assume a 10% down payment and a 90% mortgage at the rate you found above – no other costs are involved in the deal). Show the full amortization table ? Answer = YES. 4th … Answer these questions from the amortization schedule: 1. What is the principal amount of your mortgage (how much $$ are you financing?) 2. What is the monthly payment of your mortgage (Principal and Interest). 3. How much of your FIRST monthly payment applies to interest and how much applies to principal. 4. At the end of the 30 years (scroll all the way down) what is the total amount of interest that you have paid over the life of the loan.
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