Question 1

A lease is a legal document that provides the right to take legal action by the ________ for nonpayment of rent.

Accepted Answer

A) landlord 
B) builder 
C) realtor 
D) tenant 
E) homeowner 
A) landlord 
B) builder 
C) realtor 
D) tenant 
E) homeowner

Question 2

Real estate professionals believe that location is the most important factor to consider when selecting a home.

Accepted Answer

A) True 
 B)False

Question 3

Differentiate between a cooperative and a condominium.Be sure to include a discussion of the ownership and responsibility for the common areas.

Accepted Answer

Answers will vary.In cooperative housing

Question 4

During which phase of the home-buying process would you assess types of housing available?

Accepted Answer

A) Price the property 
B) Find and evaluate a property to purchase 
C) Obtain financing 
D) Determine home ownership needs 
E) Close the purchase transaction 
A) Price the property 
B) Find and evaluate a property to purchase 
C) Obtain financing 
D) Determine home ownership needs 
E) Close the purchase transaction

Question 5

Which of the following is an example of a conventional mortgage?

Accepted Answer

A) An FHA mortgage 
B) A buy-down 
C) A fixed-rate mortgage 
D) A shared-appreciation mortgage 
E) A home equity loan 
A) An FHA mortgage 
B) A buy-down 
C) A fixed-rate mortgage 
D) A shared-appreciation mortgage 
E) A home equity loan

Question 6

A payment cap keeps the payments on an adjustable-rate mortgage at a given level or limits the amount to which those payments can rise.

Accepted Answer

A) True 
 B)False

Question 7

A lease provides protection to both the tenant and the landlord.

Accepted Answer

A) True 
 B)False

Question 8

The Homeowners Protection Act requires that a PMI policy be terminated automatically when a homeowner's equity reaches ________ percent of the property value at the time the mortgage was issued.

Accepted Answer

A) 5 
B) 9 
C) 12 
D) 18 
E) 22 
A) 5 
B) 9 
C) 12 
D) 18 
E) 22

Question 9

A multiunit dwelling with two,four,or six single-family living units is called:

Accepted Answer

A) a cooperative. 
B) a mobile home. 
C) a manufactured home. 
D) a townhouse. 
E) a condominium. 
A) a cooperative. 
B) a mobile home. 
C) a manufactured home. 
D) a townhouse. 
E) a condominium.

Question 10

Refinancing of a mortgage is recommended when:

Accepted Answer

A) interest rates rise. 
B) interest rates fall. 
C) the escrow account balance declines. 
D) two or more points are required by the lender at the time of closing. 
E) the escrow account balance increases. 
A) interest rates rise. 
B) interest rates fall. 
C) the escrow account balance declines. 
D) two or more points are required by the lender at the time of closing. 
E) the escrow account balance increases.

Question 11

The purpose of title insurance is to:

Accepted Answer

A) transfer ownership of property. 
B) reduce the chance of a decrease in property value. 
C) protect an owner from unforeseen property claims. 
D) protect an owner from changes in mortgage interest rates. 
E) cover the closing costs of a real estate transaction. 
A) transfer ownership of property. 
B) reduce the chance of a decrease in property value. 
C) protect an owner from unforeseen property claims. 
D) protect an owner from changes in mortgage interest rates. 
E) cover the closing costs of a real estate transaction.

Question 12

What is the purpose of an escrow account and what costs are typically included?

Accepted Answer

An escrow account is money,usually depos

Question 13

The main housing costs associated with renting are:

Accepted Answer

A) property taxes. 
B) rent and utilities. 
C) property insurance. 
D) maintenance upkeep. 
E) down payment. 
A) property taxes. 
B) rent and utilities. 
C) property insurance. 
D) maintenance upkeep. 
E) down payment.

Question 14

Which of the following is an advantage of renting an apartment?

Accepted Answer

A) No tax benefits 
B) Easy to move 
C) Limitations regarding remodeling 
D) Restrictions regarding pets 
E) Higher utility expenses 
A) No tax benefits 
B) Easy to move 
C) Limitations regarding remodeling 
D) Restrictions regarding pets 
E) Higher utility expenses

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A contract condition that states that the agreement is binding only if a certain event occurs is a:

Accepted Answer

A) dual agency. 
B) contingency clause. 
C) counteroffer. 
D) zoning law. 
E) prefabrication. 
A) dual agency. 
B) contingency clause. 
C) counteroffer. 
D) zoning law. 
E) prefabrication.

Question 17

Brett has hired a professional to assess the soundness of the roof,foundation,and building materials of a potential home he is considering.The professional will also be checking other aspects of the home including the plumbing,heating,and cooling systems.Brett is paying for a:

Accepted Answer

A) walk-through. 
B) zoning evaluation. 
C) home inspection. 
D) title search. 
E) handyman's special. 
A) walk-through. 
B) zoning evaluation. 
C) home inspection. 
D) title search. 
E) handyman's special.

Question 18

Which of the following would increase the equity in a home at a faster rate?

Accepted Answer

A) Making a down payment of 10 percent instead of 20 percent 
B) Obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C) Obtaining a 15-year mortgage instead of a 30-year mortgage 
D) Making larger deposits to the escrow account 
E) Obtaining an interest-only mortgage 
A) Making a down payment of 10 percent instead of 20 percent 
B) Obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C) Obtaining a 15-year mortgage instead of a 30-year mortgage 
D) Making larger deposits to the escrow account 
E) Obtaining an interest-only mortgage

Question 19

A payment cap on an adjustable-rate mortgage can result in negative amortization when:

Accepted Answer

A) interest rates decrease but the amount of the monthly payment does not. 
B) the amount of the monthly payment increases and interest rates do not. 
C) the amount of the monthly payment decreases and interest rates do not. 
D) interest rates rise but the amount of the monthly payment does not. 
E) the loan stretches out to 40 years. 
A) interest rates decrease but the amount of the monthly payment does not. 
B) the amount of the monthly payment increases and interest rates do not. 
C) the amount of the monthly payment decreases and interest rates do not. 
D) interest rates rise but the amount of the monthly payment does not. 
E) the loan stretches out to 40 years.

Question 20

The assessed value of your home is the:

Accepted Answer

A) value used to calculate property taxes. 
B) estimated current market value. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost basis assigned to your home by your insurance company. 
A) value used to calculate property taxes. 
B) estimated current market value. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost basis assigned to your home by your insurance company.

A lease is a legal document that provides the right to take legal action by the ________ for nonpayment of rent.

Real estate professionals believe that location is the most important factor to consider when selecting a home.

Differentiate between a cooperative and a condominium.Be sure to include a discussion of the ownership and responsibility for the common areas.

During which phase of the home-buying process would you assess types of housing available?

Which of the following is an example of a conventional mortgage?

A payment cap keeps the payments on an adjustable-rate mortgage at a given level or limits the amount to which those payments can rise.

A lease provides protection to both the tenant and the landlord.

The Homeowners Protection Act requires that a PMI policy be terminated automatically when a homeowner's equity reaches ________ percent of the property value at the time the mortgage was issued.

A multiunit dwelling with two,four,or six single-family living units is called:

Refinancing of a mortgage is recommended when:

The purpose of title insurance is to:

What is the purpose of an escrow account and what costs are typically included?

The main housing costs associated with renting are:

Which of the following is an advantage of renting an apartment?

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

A contract condition that states that the agreement is binding only if a certain event occurs is a:

Brett has hired a professional to assess the soundness of the roof,foundation,and building materials of a potential home he is considering.The professional will also be checking other aspects of the home including the plumbing,heating,and cooling systems.Brett is paying for a:

Which of the following would increase the equity in a home at a faster rate?

A payment cap on an adjustable-rate mortgage can result in negative amortization when:

The assessed value of your home is the:

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

A lease is a legal document that provides the right to take legal action by the ________ for nonpayment of rent.

Real estate professionals believe that location is the most important factor to consider when selecting a home.

Differentiate between a cooperative and a condominium.Be sure to include a discussion of the ownership and responsibility for the common areas.

During which phase of the home-buying process would you assess types of housing available?

Which of the following is an example of a conventional mortgage?

A payment cap keeps the payments on an adjustable-rate mortgage at a given level or limits the amount to which those payments can rise.

A lease provides protection to both the tenant and the landlord.

The Homeowners Protection Act requires that a PMI policy be terminated automatically when a homeowner's equity reaches ________ percent of the property value at the time the mortgage was issued.

A multiunit dwelling with two,four,or six single-family living units is called:

Refinancing of a mortgage is recommended when:

The purpose of title insurance is to:

What is the purpose of an escrow account and what costs are typically included?

The main housing costs associated with renting are:

Which of the following is an advantage of renting an apartment?

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

A contract condition that states that the agreement is binding only if a certain event occurs is a:

Brett has hired a professional to assess the soundness of the roof,foundation,and building materials of a potential home he is considering.The professional will also be checking other aspects of the home including the plumbing,heating,and cooling systems.Brett is paying for a:

Which of the following would increase the equity in a home at a faster rate?

A payment cap on an adjustable-rate mortgage can result in negative amortization when:

The assessed value of your home is the:

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