What should be the first step in the homebuying process?

A.

Determine the price range for houses in your target area.

B.

Compare the costs of buying versus renting.

C.

Determine how much you can afford to pay monthly for a mortgage.

D.

Interview three realtors.

Your home insurance policy has a$500 deductible and provides cash value coverage on contents. If your home is over 25 years old and a small fire causes$6000 damage toit, what amount of the claim would the insurance companypay?

A.

$500

B.

$6000

C.

$5500

D.

None because the home is over 25 years old

Which of the following income is taxableincome?

A.

Insurance benefits

B.

Tips received

C.

Scholarship income

D.

Inheritances

Paying off an existing mortgage with a new mortgage that has a lower interest rate is referred to as

A.

mortgage replacement.

B.

mortgage substitution.

C.

mortgage refinancing.

D.

mortgage modification.