Quiz: Are you financially ready to buy a new home?
Even if now's the right time in your life to own a home doesn't necessarily mean your finances are also up to the commitment. Test your fiscal fitness in our "Are You Ready to Buy a New Home" quiz and save yourself the hassle of a financial crisis.
What is the recommended percentage of income you should spend on a monthly mortgage payment?
40 to 45 percent
20 to 35 percent
15 to 25 percent
How much of a down payment is recommended and/or required when purchasing a home?
Which type of loan fluctuates with the rise and fall of interest rates?
If you don't have a down payment, you can still buy a house by taking which step?
financing the down payment with a separate loan
extending the 30-year mortgage term
paying extra toward principal each month
Sheriff's sales help you with this kind of purchase:
only old, abandoned properties
taking over payments for a defaulted mortgage
Rent-to-own involves what kinds of risks?
home value can drop a lot while renting
owners can change their minds
In the economic climate of the 21st century , is it still a good idea to pay for a house with cash up front?
It's recommended you spend what percentage of your monthly income on all bills -- including a new mortgage and old debts?
less than 45 percent
less than 25 percent
less than 36 percent
If a homeowner falls behind and needs to default on a mortgage, which step will prevent poor credit reporting?
a short sale
a deed in lieu of foreclosure
Are brand new houses less of a risk than older ones?
fewer expenses and troubles with the new
less risky investment with the old
How many months of mortgage payments should you have stored up in case you lose your job or have a medical emergency?
all of the above
You can fall behind how many months before a lender will start foreclosure steps?
PMI stands for which of the following?
Principal Mortgage Income
Partial Means Index
Private Mortgage Insurance
How are property taxes and homeowners insurance calculated each year?
they're a fixed amount
they depend on property value and premiums
by principal balance and salary
Having children can add how much in expenses each month?
not enough to notice
Which resource should you turn to if you get in over your head after buying a new home?
nonprofit credit counseling agencies
a real estate professional
a loan flipper
What percentage of homes in the United States lost value in 2010?
more than 23 percent
nearly 10 percent
about 42 percent
What exactly is a "buyer's market?"
when there are more homes on the market than there are buyers
when there are more buyers than there are homes on the market
it's just a financial expression for a way of thinking about home buying
What do Fannie and Freddie have to do with home buying?
A lot. They provide loans outside of bank loans.
Maybe nothing in the next few years or so.
What kind of credit score do lenders look for from potential home buyers?