Question 1

Because a co-op is technically not a "home" it does not charge a homeowner's fee.

Accepted Answer

A) True 
 B)False

Question 2

Debt is being marketed to adults as much as toys are to children. What are some of the results of this?

Accepted Answer

A)  People are encouraged to borrow more than they should. 
B)  Almost 60% of those aged 30 and under do not pay off their credit card bills every month. 
C)  Students are limited in their capacity to obtain debt. 
D)  All of the above. 
E)  Only A and B. 
A)  People are encouraged to borrow more than they should. 
B)  Almost 60% of those aged 30 and under do not pay off their credit card bills every month. 
C)  Students are limited in their capacity to obtain debt. 
D)  All of the above. 
E)  Only A and B.

Question 3

Mortgage bankers originate mortgage loans, sell them to banks, pension funds, and insurance companies, and service or collect all the monthly mortgage payments.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an advantage of living in a condo?

Accepted Answer

A)  limited maintenance 
B)  building equity for resale and investment 
C)  direct ownership of a specific unit 
D)  freedom from neighbors 
A)  limited maintenance 
B)  building equity for resale and investment 
C)  direct ownership of a specific unit 
D)  freedom from neighbors

Question 5

Sandra Smith wants to know the purpose of a title search. What would you tell her?

Accepted Answer

A)  to gain a clear title to the property 
B)  to make sure the person selling the property really owns it 
C)  to protect you against challenges to the title 
D)  All of the above 
A)  to gain a clear title to the property 
B)  to make sure the person selling the property really owns it 
C)  to protect you against challenges to the title 
D)  All of the above

Question 6

An appraisal is a typical but not required part of the mortgage approval process.

Accepted Answer

A) True 
 B)False

Question 7

A ________ mortgage is designed to let the homeowner pay off the mortgage early. Payments begin at the 30-year fixed rate, then increase each year.

Accepted Answer

A)  balloon payment 
B)  growing equity 
C)  shared appreciation 
D)  graduated payments 
E)  conventional 
A)  balloon payment 
B)  growing equity 
C)  shared appreciation 
D)  graduated payments 
E)  conventional

Question 8

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

Accepted Answer

A)  more expensive to purchase 
B)  more expensive to operate and maintain 
C)  less freedom to make changes and less privacy 
D)  no ownership of shares in the corporation 
A)  more expensive to purchase 
B)  more expensive to operate and maintain 
C)  less freedom to make changes and less privacy 
D)  no ownership of shares in the corporation

Question 9

How can you benefit from following the smart buying steps?

Accepted Answer

A)  Smart buying allows a higher standard of living because you make smarter purchases. 
B)  Smart buying allows you to buy what you want when you want it. 
C)  Smart buying helps you maintain your budget. 
D)  Both A and C are correct. 
A)  Smart buying allows a higher standard of living because you make smarter purchases. 
B)  Smart buying allows you to buy what you want when you want it. 
C)  Smart buying helps you maintain your budget. 
D)  Both A and C are correct.

Question 10

Bob and Marilyn Hartin know the bank will carefully evaluate their situation before lending them the money for the mortgage for their new home. Which is not a consideration?

Accepted Answer

A)  their financial history 
B)  the number of children they have. 
C)  their level of debt 
D)  their ability to pay 
E)  appraised home value 
A)  their financial history 
B)  the number of children they have. 
C)  their level of debt 
D)  their ability to pay 
E)  appraised home value

Question 11

A loan origination fee is a fee paid to the lender, generally in the $200 to $300 range, and covers some of their costs of processing and financing the mortgage.

Accepted Answer

A) True 
 B)False

Question 12

When you decide to buy a home, which of these questions should be answered?

Accepted Answer

A)  What is the maximum amount that a bank will lend me? 
B)  Should I borrow up to this maximum? 
C)  How big of a down payment can I afford? 
D)  all of the above 
A)  What is the maximum amount that a bank will lend me? 
B)  Should I borrow up to this maximum? 
C)  How big of a down payment can I afford? 
D)  all of the above

Question 13

A ________ is a middleman who, for a fee, secures mortgage loans for borrowers, but does not actually make those mortgage loans.

Accepted Answer

A)  mortgage banker 
B)  mortgage broker 
C)  mortgagee 
D)  mortgagor 
E)  none of the above 
A)  mortgage banker 
B)  mortgage broker 
C)  mortgagee 
D)  mortgagor 
E)  none of the above

Question 14

Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% downpayment for the new home.
-According to the 28 percent rule, Natasha can afford a maximum PITI of $1,400. What is her gross monthly income?

Accepted Answer

A)  $2,800 
B)  $3,888 
C)  $5,000 
D)  $5,600 
E)  $39,200 
A)  $2,800 
B)  $3,888 
C)  $5,000 
D)  $5,600 
E)  $39,200

Question 15

The interest on your mortgage is generally tax deductible and this tax benefit should be considered when determining which type of debt you should use.

Accepted Answer

A) True 
 B)False

Question 16

Discuss the results of having debt marketed to adults the same way toys are marketed to children.

Accepted Answer

1.Students and those with little capacit

Question 17

All of the following are advantage of renting versus buying a home except

Accepted Answer

A)  mobility 
B)  no property taxes 
C)  not responsible for home repairs or maintenance 
D)  control over remodeling and decorating decisions 
E)  no risk of falling housing prices 
A)  mobility 
B)  no property taxes 
C)  not responsible for home repairs or maintenance 
D)  control over remodeling and decorating decisions 
E)  no risk of falling housing prices

Question 18

Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% downpayment for the new home.
-Assuming a PITI of approximately $1,300 for the townhouse, will they be approved for a mortgage?

Accepted Answer

A)  No, based on the amount of their existing debt they will not be approved. 
B)  No, based on the 28 percent rule they will not be approved. 
C)  Yes, based on the 36 percent rule they will be approved. 
D)  Yes, based solely on their combined income they will be approved. 
A)  No, based on the amount of their existing debt they will not be approved. 
B)  No, based on the 28 percent rule they will not be approved. 
C)  Yes, based on the 36 percent rule they will be approved. 
D)  Yes, based solely on their combined income they will be approved.

Question 19

You can only get an ARM loan from a predatory lender.

Accepted Answer

A) True 
 B)False

Question 20

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

Accepted Answer

A) True 
 B)False

Because a co-op is technically not a "home" it does not charge a homeowner's fee.

Debt is being marketed to adults as much as toys are to children. What are some of the results of this?

Mortgage bankers originate mortgage loans, sell them to banks, pension funds, and insurance companies, and service or collect all the monthly mortgage payments.

Which of the following is not an advantage of living in a condo?

Sandra Smith wants to know the purpose of a title search. What would you tell her?

An appraisal is a typical but not required part of the mortgage approval process.

A ________ mortgage is designed to let the homeowner pay off the mortgage early. Payments begin at the 30-year fixed rate, then increase each year.

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

How can you benefit from following the smart buying steps?

Bob and Marilyn Hartin know the bank will carefully evaluate their situation before lending them the money for the mortgage for their new home. Which is not a consideration?

A loan origination fee is a fee paid to the lender, generally in the $200 to $300 range, and covers some of their costs of processing and financing the mortgage.

When you decide to buy a home, which of these questions should be answered?

A ________ is a middleman who, for a fee, secures mortgage loans for borrowers, but does not actually make those mortgage loans.

The interest on your mortgage is generally tax deductible and this tax benefit should be considered when determining which type of debt you should use.

Discuss the results of having debt marketed to adults the same way toys are marketed to children.

All of the following are advantage of renting versus buying a home except

You can only get an ARM loan from a predatory lender.

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 8: The Home and Automobile Decision

Because a co-op is technically not a "home" it does not charge a homeowner's fee.

Debt is being marketed to adults as much as toys are to children. What are some of the results of this?

Mortgage bankers originate mortgage loans, sell them to banks, pension funds, and insurance companies, and service or collect all the monthly mortgage payments.

Which of the following is not an advantage of living in a condo?

Sandra Smith wants to know the purpose of a title search. What would you tell her?

An appraisal is a typical but not required part of the mortgage approval process.

A ________ mortgage is designed to let the homeowner pay off the mortgage early. Payments begin at the 30-year fixed rate, then increase each year.

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

How can you benefit from following the smart buying steps?

Bob and Marilyn Hartin know the bank will carefully evaluate their situation before lending them the money for the mortgage for their new home. Which is not a consideration?

A loan origination fee is a fee paid to the lender, generally in the $200 to $300 range, and covers some of their costs of processing and financing the mortgage.

When you decide to buy a home, which of these questions should be answered?

A ________ is a middleman who, for a fee, secures mortgage loans for borrowers, but does not actually make those mortgage loans.

The interest on your mortgage is generally tax deductible and this tax benefit should be considered when determining which type of debt you should use.

Discuss the results of having debt marketed to adults the same way toys are marketed to children.

All of the following are advantage of renting versus buying a home except

You can only get an ARM loan from a predatory lender.

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters