Housing Unit Review

Front

What are some of the main reasons home-buying is harder and at a historic low right now?

Back

High interest rates, Limited housing supply, Increased property taxes, Economic uncertainty.

Front

A loan taken by a person in order to buy a home is called a......

Back

Mortgage.

Front

If you have a credit card with a $2,000 limit and your current balance is $750, what is your utilization ratio?

Back

37.5%.

Front

Identify the principal in the investment of $1,500 to earn $300 in interest at a yearly interest rate of 5.5%.

Back

$1,500.

Front

What does a mortgage lender typically require from the borrower?

Back

A down payment.

Front

What is a mortgage?

Back

A mortgage is a loan specifically used to purchase real estate, where the property serves as collateral.

Front

What is the purpose of a down payment in home buying?

Back

A down payment reduces the loan amount and shows the lender the buyer's commitment.

Front

What is the significance of interest rates in home buying?

Back

Higher interest rates increase monthly mortgage payments, making homes less affordable.

Front

What is a credit utilization ratio?

Back

The credit utilization ratio is the percentage of a borrower's available credit that is currently being used.

Front

How is interest calculated on a loan?

Back

Interest is typically calculated as a percentage of the principal amount over a specified period.