Question 1

An escrow account is a special account at a financial institution where funds are held until they are paid to a third party.

Accepted Answer

A) True 
 B)False

Question 2

Making a larger than required down payment on a given home will

Accepted Answer

A) reduce the amount of the monthly payments. 
B) increase the amount of interest paid. 
C) reduce the equity in the property. 
D) increase the amount of the loan. 
A) reduce the amount of the monthly payments. 
B) increase the amount of interest paid. 
C) reduce the equity in the property. 
D) increase the amount of the loan.

Question 3

The longer the number of remaining years you expect to live in a house,the more likely you would benefit from refinancing.

Accepted Answer

A) True 
 B)False

Question 4

Mortgage insurance is generally required on any mortgage loan where the initial loan-to-value ratio is more than 70 percent.

Accepted Answer

A) True 
 B)False

Question 5

The time to prequalify for a mortgage is after you have made an offer to buy a property.

Accepted Answer

A) True 
 B)False

Question 6

The process in which the lender sues the borrower to prove default and asks the court to order the sale of real estate property to pay the mortgage debt is called

Accepted Answer

A) preforeclosure. 
B) foreclosure. 
C) repossession. 
D) default. 
A) preforeclosure. 
B) foreclosure. 
C) repossession. 
D) default.

Question 7

The type of mortgage where the interest rate can fluctuate up and down according to an index of interest rates is the ____ mortgage.

Accepted Answer

A) renegotiable-rate 
B) adjustable-rate 
C) graduated-payment 
D) shared-appreciation 
A) renegotiable-rate 
B) adjustable-rate 
C) graduated-payment 
D) shared-appreciation

Question 8

Offers to purchase and counteroffers are all part of the negotiating process in buying a house.

Accepted Answer

A) True 
 B)False

Question 9

Prior to foreclosure,the homeowner has which options?

Accepted Answer

A) Depart from the property. 
B) Declare bankruptcy. 
C) Arrange a short sale. 
D) All of these choices. 
A) Depart from the property. 
B) Declare bankruptcy. 
C) Arrange a short sale. 
D) All of these choices.

Question 10

The FHA mortgage insurance premium can be paid up front in a lump-sum payment,or it can be financed.

Accepted Answer

A) True 
 B)False

Question 11

Using a back-end ratio of 37 percent,a person with a $360 auto loan would need a monthly gross income of approximately ____ to buy a home with total monthly payments of $1,420.

Accepted Answer

A) $3,838 
B) $4,811 
C) $7,903 
D) $2,393 
A) $3,838 
B) $4,811 
C) $7,903 
D) $2,393

Question 12

The interest rate on a second mortgage is generally lower than the interest rate on the original mortgage.

Accepted Answer

A) True 
 B)False

Question 13

The process in which the lender sues the borrower to prove default and asks the court to order the sale of the property to pay the debt is called foreclosure.

Accepted Answer

A) True 
 B)False

Question 14

Real estate property taxes are typically not

Accepted Answer

A) locally assessed taxes. 
B) tax-deductible expenses. 
C) levied on the assessed value of property. 
D) based on the purchase price of the home. 
A) locally assessed taxes. 
B) tax-deductible expenses. 
C) levied on the assessed value of property. 
D) based on the purchase price of the home.

Question 15

Closing costs may vary from 2 percent of the mortgage loan amount up to 7 percent.

Accepted Answer

A) True 
 B)False

Question 16

Calculate the amount of monthly payment for principal and interest for a $250,000 home with 20 percent down and a 7.5 percent,30-year loan.The payment per $1,000 debt under these terms is $6.9921.

Accepted Answer

A) $1,748 
B) $1,573 
C) $1,398 
D) $349 
A) $1,748 
B) $1,573 
C) $1,398 
D) $349

Question 17

Jason is buying a home with a $150,000 mortgage using a 6 percent,15-year loan.How much of the first month's payment will go towards interest?

Accepted Answer

A) $9,000 
B) $900 
C) $750 
D) $515 
A) $9,000 
B) $900 
C) $750 
D) $515

Question 18

You should always obtain a prequalification from a lender before your search for a home to buy.

Accepted Answer

A) True 
 B)False

Question 19

What basic factor(s) affect(s) the monthly payment on a mortgage loan?

Accepted Answer

A) Amount borrowed 
B) Interest rate charged 
C) Time period of the loan 
D) All of these 
A) Amount borrowed 
B) Interest rate charged 
C) Time period of the loan 
D) All of these

Question 20

A title to real property is the legal right of ownership interest.

Accepted Answer

A) True 
 B)False

An escrow account is a special account at a financial institution where funds are held until they are paid to a third party.

Making a larger than required down payment on a given home will

The longer the number of remaining years you expect to live in a house,the more likely you would benefit from refinancing.

Mortgage insurance is generally required on any mortgage loan where the initial loan-to-value ratio is more than 70 percent.

The time to prequalify for a mortgage is after you have made an offer to buy a property.

The process in which the lender sues the borrower to prove default and asks the court to order the sale of real estate property to pay the mortgage debt is called

The type of mortgage where the interest rate can fluctuate up and down according to an index of interest rates is the ____ mortgage.

Offers to purchase and counteroffers are all part of the negotiating process in buying a house.

Prior to foreclosure,the homeowner has which options?

The FHA mortgage insurance premium can be paid up front in a lump-sum payment,or it can be financed.

Using a back-end ratio of 37 percent,a person with a $360 auto loan would need a monthly gross income of approximately ____ to buy a home with total monthly payments of $1,420.

The interest rate on a second mortgage is generally lower than the interest rate on the original mortgage.

The process in which the lender sues the borrower to prove default and asks the court to order the sale of the property to pay the debt is called foreclosure.

Real estate property taxes are typically not

Closing costs may vary from 2 percent of the mortgage loan amount up to 7 percent.

Calculate the amount of monthly payment for principal and interest for a $250,000 home with 20 percent down and a 7.5 percent,30-year loan.The payment per $1,000 debt under these terms is $6.9921.

Jason is buying a home with a $150,000 mortgage using a 6 percent,15-year loan.How much of the first month's payment will go towards interest?

You should always obtain a prequalification from a lender before your search for a home to buy.

What basic factor(s) affect(s) the monthly payment on a mortgage loan?

A title to real property is the legal right of ownership interest.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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Exam 9: Obtaining Affordable Housing

An escrow account is a special account at a financial institution where funds are held until they are paid to a third party.

Making a larger than required down payment on a given home will

The longer the number of remaining years you expect to live in a house,the more likely you would benefit from refinancing.

Mortgage insurance is generally required on any mortgage loan where the initial loan-to-value ratio is more than 70 percent.

The time to prequalify for a mortgage is after you have made an offer to buy a property.

The process in which the lender sues the borrower to prove default and asks the court to order the sale of real estate property to pay the mortgage debt is called

The type of mortgage where the interest rate can fluctuate up and down according to an index of interest rates is the ____ mortgage.

Offers to purchase and counteroffers are all part of the negotiating process in buying a house.

Prior to foreclosure,the homeowner has which options?

The FHA mortgage insurance premium can be paid up front in a lump-sum payment,or it can be financed.

Using a back-end ratio of 37 percent,a person with a $360 auto loan would need a monthly gross income of approximately ____ to buy a home with total monthly payments of $1,420.

The interest rate on a second mortgage is generally lower than the interest rate on the original mortgage.

The process in which the lender sues the borrower to prove default and asks the court to order the sale of the property to pay the debt is called foreclosure.

Real estate property taxes are typically not

Closing costs may vary from 2 percent of the mortgage loan amount up to 7 percent.

Calculate the amount of monthly payment for principal and interest for a $250,000 home with 20 percent down and a 7.5 percent,30-year loan.The payment per $1,000 debt under these terms is $6.9921.

Jason is buying a home with a $150,000 mortgage using a 6 percent,15-year loan.How much of the first month's payment will go towards interest?

You should always obtain a prequalification from a lender before your search for a home to buy.

What basic factor(s) affect(s) the monthly payment on a mortgage loan?

A title to real property is the legal right of ownership interest.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters