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Jim is in the market for a car that will last for the next 10 years and has saved up some money for the purpose of a car. What’s the best transportation option for Jim? |
Utilizing his saving as a down payment and buying the car using an auto loan. |
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Jim wants to buy a car, but he’ll probably only need it for a couple of years. He has a short commute to work, so he won’t be putting many miles on his vehicle. What’s the best transportation option for Jim? |
Lease the car |
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John would like to move from the city into the suburbs and has been saving up a large down payment for a home. Which is the most cost effective way for John to buy a house in the suburbs? |
Finish the term of his apartment lease in the city and find a new home to purchase simultaneously. |
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Depreciating assets: |
Become more valuable over time. |
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What is a lease? |
A contract outlining the terms under which a landlord agrees to rent property to a tenant. |
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Typically homes ___________ over time and cars ______________ over time. |
appreciate; depreciate |
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Which combination of factors would result in the lowest monthly mortgage payment? |
Small down payment, a shorter term loan, and small interest rate |
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The biggest factor in determining the price of a mortgage is: |
The total cost of the home. |
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Renting provides _________ flexibility but can lead to _________ costs in the long-term. |
greater; higher |
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Which best describes the benefits of renting a home? |
greater; higher |
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