Question 1

The appraised value of your home is the:

Accepted Answer

A) value used to calculate property taxes. 
B) estimated current value of the property. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost remaining after the down payment. 
A) value used to calculate property taxes. 
B) estimated current value of the property. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost remaining after the down payment.

Question 2

One service provided by a real estate agent when selling your home is:

Accepted Answer

A) providing legal advice. 
B) completing a mortgage application. 
C) screening potential buyers. 
D) making needed repairs. 
E) conducting a home inspection. 
A) providing legal advice. 
B) completing a mortgage application. 
C) screening potential buyers. 
D) making needed repairs. 
E) conducting a home inspection.

Question 3

James Monroe is a member of a nonprofit organization that owns a building.He can occupy one of its units as long as he owns stock in the organization.What type of housing is James most likely living in?

Accepted Answer

A) A condominium 
B) A duplex 
C) A cooperative 
D) A prefabricated home 
E) A mobile home 
A) A condominium 
B) A duplex 
C) A cooperative 
D) A prefabricated home 
E) A mobile home

Question 4

Prefabricated homes refers to:

Accepted Answer

A) nonprofit ownership. 
B) government leasing of living units. 
C) rental units available to government employees. 
D) ownership available to low-income individuals. 
E) housing units that are partially assembled in factories. 
A) nonprofit ownership. 
B) government leasing of living units. 
C) rental units available to government employees. 
D) ownership available to low-income individuals. 
E) housing units that are partially assembled in factories.

Question 5

Prepaid interest charged by a mortgage lender is called:

Accepted Answer

A) Escrow 
B) Points 
C) Origination fee 
D) Title fee 
E) Deed 
A) Escrow 
B) Points 
C) Origination fee 
D) Title fee 
E) Deed

Question 6

Which document does the seller use to guarantee the title is good?

Accepted Answer

A) Title 
B) Escrow account 
C) Settlement statement 
D) Appraisal 
E) Warranty deed 
A) Title 
B) Escrow account 
C) Settlement statement 
D) Appraisal 
E) Warranty deed

Question 7

An escrow account is designed to reduce the cost of a mortgage.

Accepted Answer

A) True 
 B)False

Question 8

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

Accepted Answer

A) buy-down. 
B) discount point. 
C) float. 
D) rate cap. 
E) payment cap. 
A) buy-down. 
B) discount point. 
C) float. 
D) rate cap. 
E) payment cap.

Question 9

If you sell your home without a real estate agent,you should still employ the services of a(n)________ to assist you with the contract and the closing.

Accepted Answer

A) broker 
B) insurance agent 
C) lawyer 
D) contractor 
E) rental agent 
A) broker 
B) insurance agent 
C) lawyer 
D) contractor 
E) rental agent

Question 10

Kate plans to rent instead of buying her housing.Which advantage of renting will she realize?

Accepted Answer

A) Tax deductions 
B) Ease of mobility 
C) Property value increases 
D) Restricted lifestyle 
E) Home remodeling flexibility 
A) Tax deductions 
B) Ease of mobility 
C) Property value increases 
D) Restricted lifestyle 
E) Home remodeling flexibility

Question 11

Jerry Watson is considering buying a home.What five actions would you recommend for him to take to accomplish this goal of buying a home?

Accepted Answer

The process of buying a home involves th

Question 12

Nicole and Larry have decided to perform the landscaping of their new home by themselves.They also plan to take a do-it-yourself class at a local home store so they can replace the tile in the master bathroom without using a contractor.The effect of performing these tasks themselves will result in an increase in their:

Accepted Answer

A) principal. 
B) contingencies. 
C) escrow account. 
D) sweat equity. 
E) buy-down. 
A) principal. 
B) contingencies. 
C) escrow account. 
D) sweat equity. 
E) buy-down.

Question 13

Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to possibly avoid a lower home value after your purchase.

Accepted Answer

A) True 
 B)False

Question 14

A home equity loan may also be referred to as a ________ mortgage.

Accepted Answer

A) shared-appreciation 
B) graduated-payment 
C) growing-equity 
D) second 
E) buy-down 
A) shared-appreciation 
B) graduated-payment 
C) growing-equity 
D) second 
E) buy-down

Question 15

Legislation that requires that loan applicants be given certain information,including an estimate of the costs,three days before the closing,is known as:

Accepted Answer

A) the Real Estate Settlement Procedures Act. 
B) the Cooperative Lending Act. 
C) the Truth in Lending Act. 
D) the Title Insurance Act. 
E) the Real Estate Investment Act. 
A) the Real Estate Settlement Procedures Act. 
B) the Cooperative Lending Act. 
C) the Truth in Lending Act. 
D) the Title Insurance Act. 
E) the Real Estate Investment Act.

Question 16

Your selection for a place of residence is most likely to be influenced by your:

Accepted Answer

A) lifestyle. 
B) gender. 
C) favorite restaurant. 
D) credit score. 
E) number of years employed. 
A) lifestyle. 
B) gender. 
C) favorite restaurant. 
D) credit score. 
E) number of years employed.

Question 17

Jennifer Garland is purchasing a home with components built in a factory and then assembled at the housing site.What type of housing is Jennifer purchasing?

Accepted Answer

A) Condominium 
B) Duplex 
C) Cooperative 
D) Prefabricated home 
E) Penthouse 
A) Condominium 
B) Duplex 
C) Cooperative 
D) Prefabricated home 
E) Penthouse

Question 18

Earnest money is used:

Accepted Answer

A) to pay real estate property taxes. 
B) to reduce the mortgage interest rate. 
C) as evidence of good faith by a homebuyer. 
D) to pay the real estate agent's commission. 
E) to pay a mortgage application fee. 
A) to pay real estate property taxes. 
B) to reduce the mortgage interest rate. 
C) as evidence of good faith by a homebuyer. 
D) to pay the real estate agent's commission. 
E) to pay a mortgage application fee.

Question 19

Explain negative amortization and how such a situation can occur.

Accepted Answer

When mortgage payment amounts do not ris

Question 20

Which of the following expenses is paid from an escrow account?

Accepted Answer

A) Title insurance 
B) Property taxes 
C) Points 
D) Loan application fee 
E) Real estate agent's commission 
A) Title insurance 
B) Property taxes 
C) Points 
D) Loan application fee 
E) Real estate agent's commission

The appraised value of your home is the:

One service provided by a real estate agent when selling your home is:

James Monroe is a member of a nonprofit organization that owns a building.He can occupy one of its units as long as he owns stock in the organization.What type of housing is James most likely living in?

Prefabricated homes refers to:

Prepaid interest charged by a mortgage lender is called:

Which document does the seller use to guarantee the title is good?

An escrow account is designed to reduce the cost of a mortgage.

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

If you sell your home without a real estate agent,you should still employ the services of a(n)________ to assist you with the contract and the closing.

Kate plans to rent instead of buying her housing.Which advantage of renting will she realize?

Jerry Watson is considering buying a home.What five actions would you recommend for him to take to accomplish this goal of buying a home?

Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to possibly avoid a lower home value after your purchase.

A home equity loan may also be referred to as a ________ mortgage.

Legislation that requires that loan applicants be given certain information,including an estimate of the costs,three days before the closing,is known as:

Your selection for a place of residence is most likely to be influenced by your:

Jennifer Garland is purchasing a home with components built in a factory and then assembled at the housing site.What type of housing is Jennifer purchasing?

Earnest money is used:

Explain negative amortization and how such a situation can occur.

Which of the following expenses is paid from an escrow account?

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 appraised value of your home is the:

One service provided by a real estate agent when selling your home is:

James Monroe is a member of a nonprofit organization that owns a building.He can occupy one of its units as long as he owns stock in the organization.What type of housing is James most likely living in?

Prefabricated homes refers to:

Prepaid interest charged by a mortgage lender is called:

Which document does the seller use to guarantee the title is good?

An escrow account is designed to reduce the cost of a mortgage.

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

If you sell your home without a real estate agent,you should still employ the services of a(n)________ to assist you with the contract and the closing.

Kate plans to rent instead of buying her housing.Which advantage of renting will she realize?

Jerry Watson is considering buying a home.What five actions would you recommend for him to take to accomplish this goal of buying a home?

Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to possibly avoid a lower home value after your purchase.

A home equity loan may also be referred to as a ________ mortgage.

Legislation that requires that loan applicants be given certain information,including an estimate of the costs,three days before the closing,is known as:

Your selection for a place of residence is most likely to be influenced by your:

Jennifer Garland is purchasing a home with components built in a factory and then assembled at the housing site.What type of housing is Jennifer purchasing?

Earnest money is used:

Explain negative amortization and how such a situation can occur.

Which of the following expenses is paid from an escrow account?

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