Personal Finance 1st Edition by Jack R. Kapoor

Exercise 20

1 What are the main sources of money for a down payment?

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2 What factors affect a person’s ability to qualify for a mortgage?

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3 How do changing interest rates affect the amount of mortgage a person can afford?

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4 How do discount points affect the cost of a mortgage?

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5 Under what conditions might an adjustable–rate mortgage be appropriate?

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6 When might refinancing a mortgage be advisable?

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7 How do closing costs affect a person’s ability to afford a home purchase?

Action Application Conduct Web research on various types of mortgages and current rates.

Step 1 of 7

1. The main sources of a down payment are personal savings, pension plan funds, investments, and assistance from relatives.