Question

1. millennials are buying fewer homes than in previous generations for each of these reasons except...

a. they have to self - fund retirement to a greater extent
b. they find apartments to be trendier and more fun
c. they are paying down large student loans instead
d. they prefer to spend money on travel experiences rather than homeownership.

1. how much money should you put toward your homes downpayment?

a. your entire emergency fund
b. 3 times your monthly expenses
c. 20% of the price of the home
d. 5 years worth of payments

1. you should meet each of these 3 requirements before you consider buying a home:

(choose three)
a. you qualify for good mortgage terms
b. you have enough saved for a down payment and an emergency fund
c. you plan to stay in the home for 5 or more years
d. you are married and have children

1. how is it possible someone could pay their mortgage monthly for years without reducing their principal by very much?

a. the real estate market changed substantially since they took out the mortgage
b. the houses value increased so much that its worth more than they agreed to pay
c. in early years, most of the payments go toward interest

Explanation:

Question 2:

To determine the exception, we analyze each option:

• Option a: Self - funding retirement more can limit funds for home buying, so it's a reason.
• Option b: Finding apartments trendier is a personal preference, not a financial or practical barrier like the others, so it's the exception.
• Option c: Paying down student loans uses money that could go to a home, so it's a reason.
• Option d: Spending on travel instead of homeownership is a choice that reduces home - buying, so it's a reason.

In home buying, a common and recommended down - payment is 20% of the home's price to avoid private mortgage insurance in many cases. Using the entire emergency fund (a) is unwise, 3 times monthly expenses (b) is not a standard down - payment measure, and 5 years' worth of payments (d) is not a typical down - payment amount.

• Option a: Qualifying for good mortgage terms means you can afford the mortgage, so it's a requirement.
• Option b: Having enough for a down - payment and an emergency fund ensures financial stability, so it's a requirement.
• Option c: Planning to stay for 5 or more years makes home - buying a good investment as transaction costs are high, so it's a requirement.
• Option d: Being married with children is not a necessary requirement for buying a home; people can buy homes regardless of marital or parental status.

Answer:

b. They find apartments to be trendier and more fun

Question 3: