Question 1

Before searching for a house to buy,you should

Accepted Answer

A) prequalify for a mortgage. 
B) adjust your budget accordingly. 
C) obtain a copy of your credit report. 
D) All of these 
A) prequalify for a mortgage. 
B) adjust your budget accordingly. 
C) obtain a copy of your credit report. 
D) All of these

Question 2

A real estate broker has a legal obligation to the

Accepted Answer

A) buyer. 
B) seller. 
C) lender. 
D) party who is paying him or her. 
A) buyer. 
B) seller. 
C) lender. 
D) party who is paying him or her.

Question 3

The maximum down payment is based on the lender's desired loan-to-value ratio.

Accepted Answer

A) True 
 B)False

Question 4

When you apply for a mortgage loan you usually have the option of locking-in the rate at the time the loan is approved or accepting the rate in effect at the time of the closing.

Accepted Answer

A) True 
 B)False

Question 5

Mortgage lenders generally prefer that total monthly debt payments and housing costs do not exceed 36 percent of gross monthly income.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following documents outlining all of the costs associated with closing on the sale of a home must the purchaser receive at least 1 business day prior to the closing?

Accepted Answer

A) deed 
B) good-faith estimate 
C) uniform settlement statement 
D) abstract 
A) deed 
B) good-faith estimate 
C) uniform settlement statement 
D) abstract

Question 7

A uniform settlement statement is a lender's promise to grant a loan.

Accepted Answer

A) True 
 B)False

Question 8

Stefan and Patricia would like to buy a home,but they aren't sure how large a house payment they can afford.Their combined gross monthly income is $5,000,and they have a $425 education loan payment.Assuming a 38 percent back-end ratio,Stefan and Patricia qualify for a maximum total house payment of

Accepted Answer

A) $1,000. 
B) $1,475. 
C) $1,900. 
D) $4,575. 
A) $1,000. 
B) $1,475. 
C) $1,900. 
D) $4,575.

Question 9

When lenders accept less than a 20 percent down payment,mortgage insurance is generally required.

Accepted Answer

A) True 
 B)False

Question 10

The damage deposit is an amount paid in advance to a landlord for normal wear and tear on rental property.

Accepted Answer

A) True 
 B)False

Question 11

John is buying a home with a $120,000 mortgage using a 6.5 percent,15-year loan.If the payment per $1,000 debt under these terms is $8.7111,how much is the monthly payment?

Accepted Answer

A) $667 
B) $1,045 
C) $2,010 
D) $791 
A) $667 
B) $1,045 
C) $2,010 
D) $791

Question 12

Carl has found an apartment that has monthly rent payment of $950 and requires a one month's security deposit and a $500 damage deposit.In order to move in,Carl will probably be required to pay

Accepted Answer

A) $950. 
B) $1450. 
C) $1900. 
D) $2400. 
A) $950. 
B) $1450. 
C) $1900. 
D) $2400.

Question 13

Typically if your home is foreclosed you will owe any remaining debt between what the home is sold for at auction and the amount owed on the mortgage.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following types of deeds is the safest?

Accepted Answer

A) Special warranty deed 
B) Warranty deed 
C) Deed of bargain and sale 
D) Quitclaim deed 
A) Special warranty deed 
B) Warranty deed 
C) Deed of bargain and sale 
D) Quitclaim deed

Question 15

Real estate property taxes are based on the value of the land,not the buildings.

Accepted Answer

A) True 
 B)False

Question 16

A loan amortization schedule will reveal that with each subsequent payment,the portion of each monthly payment that goes towards interest increases while the portion that goes towards the principal decreases.

Accepted Answer

A) True 
 B)False

Question 17

The escrow account is used to accumulate funds for

Accepted Answer

A) the down payment. 
B) homeowner's insurance premiums. 
C) real estate property taxes. 
D) both homeowner's insurance premiums and real estate property taxes. 
A) the down payment. 
B) homeowner's insurance premiums. 
C) real estate property taxes. 
D) both homeowner's insurance premiums and real estate property taxes.

Question 18

In most jurisdictions,landlords are prohibited from harassing tenants who report violations of building codes or other tenant rights.

Accepted Answer

A) True 
 B)False

Question 19

Home warranty insurance protects the home buyer in case the title to the property later is found to be faulty.

Accepted Answer

A) True 
 B)False

Question 20

Over 70 percent of homes have a mortgage.

Accepted Answer

A) True 
 B)False

Before searching for a house to buy,you should

A real estate broker has a legal obligation to the

The maximum down payment is based on the lender's desired loan-to-value ratio.

When you apply for a mortgage loan you usually have the option of locking-in the rate at the time the loan is approved or accepting the rate in effect at the time of the closing.

Mortgage lenders generally prefer that total monthly debt payments and housing costs do not exceed 36 percent of gross monthly income.

Which of the following documents outlining all of the costs associated with closing on the sale of a home must the purchaser receive at least 1 business day prior to the closing?

A uniform settlement statement is a lender's promise to grant a loan.

Stefan and Patricia would like to buy a home,but they aren't sure how large a house payment they can afford.Their combined gross monthly income is $5,000,and they have a $425 education loan payment.Assuming a 38 percent back-end ratio,Stefan and Patricia qualify for a maximum total house payment of

When lenders accept less than a 20 percent down payment,mortgage insurance is generally required.

The damage deposit is an amount paid in advance to a landlord for normal wear and tear on rental property.

John is buying a home with a $120,000 mortgage using a 6.5 percent,15-year loan.If the payment per $1,000 debt under these terms is $8.7111,how much is the monthly payment?

Carl has found an apartment that has monthly rent payment of $950 and requires a one month's security deposit and a $500 damage deposit.In order to move in,Carl will probably be required to pay

Typically if your home is foreclosed you will owe any remaining debt between what the home is sold for at auction and the amount owed on the mortgage.

Which of the following types of deeds is the safest?

Real estate property taxes are based on the value of the land,not the buildings.

A loan amortization schedule will reveal that with each subsequent payment,the portion of each monthly payment that goes towards interest increases while the portion that goes towards the principal decreases.

The escrow account is used to accumulate funds for

In most jurisdictions,landlords are prohibited from harassing tenants who report violations of building codes or other tenant rights.

Home warranty insurance protects the home buyer in case the title to the property later is found to be faulty.

Over 70 percent of homes have a mortgage.

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

Before searching for a house to buy,you should

A real estate broker has a legal obligation to the

The maximum down payment is based on the lender's desired loan-to-value ratio.

When you apply for a mortgage loan you usually have the option of locking-in the rate at the time the loan is approved or accepting the rate in effect at the time of the closing.

Mortgage lenders generally prefer that total monthly debt payments and housing costs do not exceed 36 percent of gross monthly income.

Which of the following documents outlining all of the costs associated with closing on the sale of a home must the purchaser receive at least 1 business day prior to the closing?

A uniform settlement statement is a lender's promise to grant a loan.

Stefan and Patricia would like to buy a home,but they aren't sure how large a house payment they can afford.Their combined gross monthly income is $5,000,and they have a $425 education loan payment.Assuming a 38 percent back-end ratio,Stefan and Patricia qualify for a maximum total house payment of

When lenders accept less than a 20 percent down payment,mortgage insurance is generally required.

The damage deposit is an amount paid in advance to a landlord for normal wear and tear on rental property.

John is buying a home with a $120,000 mortgage using a 6.5 percent,15-year loan.If the payment per $1,000 debt under these terms is $8.7111,how much is the monthly payment?

Carl has found an apartment that has monthly rent payment of $950 and requires a one month's security deposit and a $500 damage deposit.In order to move in,Carl will probably be required to pay

Typically if your home is foreclosed you will owe any remaining debt between what the home is sold for at auction and the amount owed on the mortgage.

Which of the following types of deeds is the safest?

Real estate property taxes are based on the value of the land,not the buildings.

A loan amortization schedule will reveal that with each subsequent payment,the portion of each monthly payment that goes towards interest increases while the portion that goes towards the principal decreases.

The escrow account is used to accumulate funds for

In most jurisdictions,landlords are prohibited from harassing tenants who report violations of building codes or other tenant rights.

Home warranty insurance protects the home buyer in case the title to the property later is found to be faulty.

Over 70 percent of homes have a mortgage.

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