Answers for 1-6

Unit 15.1 Home ownership and mortgage payments 1. Is a home considered (a) personal property or (b) real property? 2. In the event a foreclosure sale does not provide a lender with all the money due, the lender can, in all states, collect the deficiency from the borrower. (T or F) 3. Holly Bing stops making her mortgage payments and her home sells at a foreclosure sale for $152,000. Holly owes $131,500 on her first mortgage and owes $31,000 on a second mortgage. How will the $152,000 be distributed? 4. Refer to problem 3. How will the money be distributed if the home sells for $175,000 ? 5. Mortgage interest rates change depending on supply and demand. (T or F) 6. Tim and Sonia are getting prequalified for a mortgage loan. The lender has qualifying ratios of 29/41. Tim earns $2,200 a month and Sonia earns $2,400 a month. The lender estimates property taxes at $2,000 a year and insurance at $550. Tim's car payment is $310; Sonia's car is paid off. They each have a minimum credit card payment of $30. What is the maximum monthly payment they qualify for