Question 1

The purpose of zoning laws is to:

Accepted Answer

A) restrict property use. 
B) encourage new housing development. 
C) minimize people moving from an area. 
D) reduce real estate property taxes. 
E) assist real estate agents in finding homes for sale. 
A) restrict property use. 
B) encourage new housing development. 
C) minimize people moving from an area. 
D) reduce real estate property taxes. 
E) assist real estate agents in finding homes for sale.

Question 2

John Ashford needs to sell his home because of a job transfer to another city.What actions should John take to prepare his home for selling?

Accepted Answer

Answers will vary
When selling a home, y

Question 3

An appraisal is likely to cost between:

Accepted Answer

A) $100 - $200. 
B) $200 - $300. 
C) $300 - $400. 
D) $400 - $500. 
E) $500 - $600. 
A) $100 - $200. 
B) $200 - $300. 
C) $300 - $400. 
D) $400 - $500. 
E) $500 - $600.

Question 4

A cost associated with renting would be:

Accepted Answer

A) property insurance. 
B) property taxes. 
C) down payment and closing costs. 
D) security deposit. 
E) mortgage interest. 
A) property insurance. 
B) property taxes. 
C) down payment and closing costs. 
D) security deposit. 
E) mortgage interest.

Question 5

A common cost associated with renting is:

Accepted Answer

A) the down payment. 
B) closing costs. 
C) property taxes. 
D) maintenance costs. 
E) the security deposit. 
A) the down payment. 
B) closing costs. 
C) property taxes. 
D) maintenance costs. 
E) the security deposit.

Question 6

A home worth $250,000 with $100,000 still owed on the mortgage would have equity of:

Accepted Answer

A) $250,000 
B) $200,000 
C) $150,000 
D) $100,000 
E) $80,000 
A) $250,000 
B) $200,000 
C) $150,000 
D) $100,000 
E) $80,000

Question 7

A deed is the document that transfers ownership of the property from one party to another.

Accepted Answer

A) True 
 B)False

Question 8

A real estate short sale occurs when:

Accepted Answer

A) you are selling the home without a real estate professional. 
B) an appraisal is too costly to obtain. 
C) an estimate of the current value of the property is not available. 
D) the new selling price is less than the amount owed on a previous mortgage. 
E) the home is sold for less than the list price. 
A) you are selling the home without a real estate professional. 
B) an appraisal is too costly to obtain. 
C) an estimate of the current value of the property is not available. 
D) the new selling price is less than the amount owed on a previous mortgage. 
E) the home is sold for less than the list price.

Question 9

What is the affordable monthly mortgage payment if your yearly gross income is $48,000 and monthly payments on an auto loan are $320?

Accepted Answer

A) $4,800 
B) $4,000 
C) $1,500 
D) $1,200 
E) $320 
A) $4,800 
B) $4,000 
C) $1,500 
D) $1,200 
E) $320

Question 10

What is not true of lifestyle inflation?

Accepted Answer

A) A salary increase is received 
B) Often results in increased debit 
C) Often results in lower amounts saved 
D) May result in overspending 
E) Helps to maintain a frugal level of spending 
A) A salary increase is received 
B) Often results in increased debit 
C) Often results in lower amounts saved 
D) May result in overspending 
E) Helps to maintain a frugal level of spending

Question 11

Home improvements may or may not increase the selling price of the home.

Accepted Answer

A) True 
 B)False

Question 12

The purpose of a counteroffer is to:

Accepted Answer

A) negotiate the purchase price. 
B) reduce mortgage payments. 
C) lower real estate property taxes. 
D) avoid paying points at closing. 
E) avoid paying the real estate agent's commission. 
A) negotiate the purchase price. 
B) reduce mortgage payments. 
C) lower real estate property taxes. 
D) avoid paying points at closing. 
E) avoid paying the real estate agent's commission.

Question 13

Which procedure is a security measure if you are selling your home without a real estate professional?

Accepted Answer

A) Closing the drapes when showing your home 
B) Turning off the lights when showing your home 
C) Showing your home only when two or more adults are at home 
D) Clearing the garage of clutter before showing your home 
E) Mowing the lawn before showing your home 
A) Closing the drapes when showing your home 
B) Turning off the lights when showing your home 
C) Showing your home only when two or more adults are at home 
D) Clearing the garage of clutter before showing your home 
E) Mowing the lawn before showing your home

Question 14

Which one of the following is an advantage of renting?

Accepted Answer

A) Tax benefits 
B) Fewer responsibilities 
C) Increased value of real estate 
D) Increased maintenance costs 
A) Tax benefits 
B) Fewer responsibilities 
C) Increased value of real estate 
D) Increased maintenance costs

Question 15

Renting would be most appropriate for people who:

Accepted Answer

A) want more tax deduction benefits. 
B) desire to do their own maintenance and repairs. 
C) have limited initial funds available. 
D) enjoy remodeling their residence. 
E) desire unmonitored parties. 
A) want more tax deduction benefits. 
B) desire to do their own maintenance and repairs. 
C) have limited initial funds available. 
D) enjoy remodeling their residence. 
E) desire unmonitored parties.

Question 16

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

Accepted Answer

A) A buy-down 
B) Shared-appreciation 
C) Prepaid interest 
D) Amortization 
E) A rate cap 
A) A buy-down 
B) Shared-appreciation 
C) Prepaid interest 
D) Amortization 
E) A rate cap

Question 17

Which of the following is most commonly used as a base index for setting rates for adjustable rate mortgages?

Accepted Answer

A) Federal Reserve Bank 
B) Karl's Mortgage Calculator 
C) Realtor.com 
D) London Interbank Offered Rate 
E) Bankrate.com 
A) Federal Reserve Bank 
B) Karl's Mortgage Calculator 
C) Realtor.com 
D) London Interbank Offered Rate 
E) Bankrate.com

Question 18

As you determine how much of a home you can afford,consider the price of the house along with the quality and:

Accepted Answer

A) size of the home. 
B) school zone. 
C) location of the home. 
D) local zoning laws. 
E) outdoor living area. 
A) size of the home. 
B) school zone. 
C) location of the home. 
D) local zoning laws. 
E) outdoor living area.

Question 19

A loan based on the high equity in a home that provides the homeowner with tax-free income and which is paid back when the home is sold or the homeowner dies is called a:

Accepted Answer

A) conventional mortgage. 
B) growing equity mortgage. 
C) second mortgage. 
D) reverse mortgage. 
E) adjustable rate mortgage. 
A) conventional mortgage. 
B) growing equity mortgage. 
C) second mortgage. 
D) reverse mortgage. 
E) adjustable rate mortgage.

Question 20

Todd Foley is applying for a $100,000 mortgage.He can select either a $595 monthly payment with no points or a $515 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

Accepted Answer

A) 6 
B) 10 
C) 18 
D) 25 
E) 48 
A) 6 
B) 10 
C) 18 
D) 25 
E) 48

The purpose of zoning laws is to:

John Ashford needs to sell his home because of a job transfer to another city.What actions should John take to prepare his home for selling?

An appraisal is likely to cost between:

A cost associated with renting would be:

A common cost associated with renting is:

A home worth $250,000 with $100,000 still owed on the mortgage would have equity of:

A deed is the document that transfers ownership of the property from one party to another.

A real estate short sale occurs when:

What is the affordable monthly mortgage payment if your yearly gross income is $48,000 and monthly payments on an auto loan are $320?

What is not true of lifestyle inflation?

Home improvements may or may not increase the selling price of the home.

The purpose of a counteroffer is to:

Which procedure is a security measure if you are selling your home without a real estate professional?

Which one of the following is an advantage of renting?

Renting would be most appropriate for people who:

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

Which of the following is most commonly used as a base index for setting rates for adjustable rate mortgages?

As you determine how much of a home you can afford,consider the price of the house along with the quality and:

A loan based on the high equity in a home that provides the homeowner with tax-free income and which is paid back when the home is sold or the homeowner dies is called a:

Todd Foley is applying for a $100,000 mortgage.He can select either a $595 monthly payment with no points or a $515 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 9: The Housing Decision: Factors and Finances

The purpose of zoning laws is to:

John Ashford needs to sell his home because of a job transfer to another city.What actions should John take to prepare his home for selling?

An appraisal is likely to cost between:

A cost associated with renting would be:

A common cost associated with renting is:

A home worth $250,000 with $100,000 still owed on the mortgage would have equity of:

A deed is the document that transfers ownership of the property from one party to another.

A real estate short sale occurs when:

What is the affordable monthly mortgage payment if your yearly gross income is $48,000 and monthly payments on an auto loan are $320?

What is not true of lifestyle inflation?

Home improvements may or may not increase the selling price of the home.

The purpose of a counteroffer is to:

Which procedure is a security measure if you are selling your home without a real estate professional?

Which one of the following is an advantage of renting?

Renting would be most appropriate for people who:

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

Which of the following is most commonly used as a base index for setting rates for adjustable rate mortgages?

As you determine how much of a home you can afford,consider the price of the house along with the quality and:

A loan based on the high equity in a home that provides the homeowner with tax-free income and which is paid back when the home is sold or the homeowner dies is called a:

Todd Foley is applying for a $100,000 mortgage.He can select either a $595 monthly payment with no points or a $515 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters