True or false

___25. Current interest rates can affect the price of a home.

___26. Many people believe that the location is the most important factor to consider when selecting a home.

___27. Qualifying for a mortgage is similar to obtaining other forms of credit.

___28. Prepaid interest may be part of a mortgage agreement.

___29. Adjustable rate mortgages with a payment cap can result in a situation of negative amortization.

___30. Home improvements may contribute more to the value of the home than the cost of the renovations. _

__31. An appraisal is the estimate of the current value of a property.

___32. A mortgage is a long term loan on a specific piece of property such as a home with payments usually made over 15, 20, or 30 years.

___33. Credit encourages overspending and ties up future income. _ __34. Creditors determine credit worthiness on the basis of character, capacity, capital, collateral, and conditions.

___35. A Treasury bond maturities range from 10 to 30 years.

___36. A municipal bond is also called a muni.

___37. To determine the quality and risk associated with bond issues, investors rely on the bond rating.

___38. A credit card can sometimes be financially beneficial to the borrower or card user.

___39. Amortization refers to changes in the monthly payment for a variable rate mortgage.

___40. With fixed rates mortgages, the longer the period of the loan then the lower the interest rate.