Question 1

A ____ is a typical feature of seller financing when you buy a home.

Accepted Answer

A) balloon payment 
B) $0 down payment 
C) rapid build-up in equity 
D) long payoff period 
A) balloon payment 
B) $0 down payment 
C) rapid build-up in equity 
D) long payoff period

Question 2

A land contract is also called a

Accepted Answer

A) real estate contract. 
B) homeowners' manual. 
C) bill of sale. 
D) contract for deed. 
A) real estate contract. 
B) homeowners' manual. 
C) bill of sale. 
D) contract for deed.

Question 3

The difference between the amount owed and what the lender collects at the short sale is referred to as the

Accepted Answer

A) foreclosure fee. 
B) limited recourse loan. 
C) deficiency amount. 
D) upside down. 
A) foreclosure fee. 
B) limited recourse loan. 
C) deficiency amount. 
D) upside down.

Question 4

Property taxes are based on the ____ of the house.

Accepted Answer

A) loan value 
B) assessed value 
C) purchase price 
D) replacement price 
A) loan value 
B) assessed value 
C) purchase price 
D) replacement price

Question 5

Real estate transfer taxes can affect the price a seller is willing to accept for a home.

Accepted Answer

A) True 
 B)False

Question 6

A buyer's agent or broker serves as the buyer's representative in the real estate negotiations and transaction.

Accepted Answer

A) True 
 B)False

Question 7

Lenders in the sub-prime market offer loans

Accepted Answer

A) to higher-risk applicants. 
B) with lower interest rates. 
C) to applicants with excellent credit ratings. 
D) to applicants that have been preapproved. 
A) to higher-risk applicants. 
B) with lower interest rates. 
C) to applicants with excellent credit ratings. 
D) to applicants that have been preapproved.

Question 8

The back-end ratio compares all monthly debt payments and housing costs to gross monthly income.

Accepted Answer

A) True 
 B)False

Question 9

Home warranty insurance is quite similar to a service contract on a vehicle or other product.

Accepted Answer

A) True 
 B)False

Question 10

The term cooperative describes a method of ownership for housing rather than a type of building.

Accepted Answer

A) True 
 B)False

Question 11

The tax deductible expenses related to home ownership are

Accepted Answer

A) homeowner's insurance and property taxes. 
B) homeowner's insurance and home improvements. 
C) home improvements and mortgage interest. 
D) mortgage interest and property taxes. 
A) homeowner's insurance and property taxes. 
B) homeowner's insurance and home improvements. 
C) home improvements and mortgage interest. 
D) mortgage interest and property taxes.

Question 12

________ clauses specify that certain conditions must be satisfied before a home purchase contract is binding.

Accepted Answer

A) Contingency 
B) Home warranty 
C) Deed 
D) Title 
A) Contingency 
B) Home warranty 
C) Deed 
D) Title

Question 13

VA-guaranteed mortgages are very much like FHA-insured mortgages except they

Accepted Answer

A) have higher interest rates. 
B) have higher required down payments. 
C) can only be granted to military veterans. 
D) have shorter processing time for loan approval. 
A) have higher interest rates. 
B) have higher required down payments. 
C) can only be granted to military veterans. 
D) have shorter processing time for loan approval.

Question 14

The portion of a mortgage payment that is applied to the principal increases quickly in the early years of the loan.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a characteristic of a second mortgage loan?

Accepted Answer

A) Second mortgages allow borrowers to access their home equity. 
B) The claim of the second mortgage lender is primary. 
C) The property is collateral for both loans. 
D) Second mortgages can pay for major remodeling projects, finance college costs, medical bills, and so on. 
A) Second mortgages allow borrowers to access their home equity. 
B) The claim of the second mortgage lender is primary. 
C) The property is collateral for both loans. 
D) Second mortgages can pay for major remodeling projects, finance college costs, medical bills, and so on.

Question 16

Monthly fees assessed to buyers of cooperatives include funds for

Accepted Answer

A) management fees. 
B) payment on the cooperative's debt. 
C) insurance covering the building(s). 
D) All of these 
A) management fees. 
B) payment on the cooperative's debt. 
C) insurance covering the building(s). 
D) All of these

Question 17

Homeowners may find it advantageous to refinance a mortgage when interest rates rise.

Accepted Answer

A) True 
 B)False

Question 18

Habitability standards for rental property would not include things such as

Accepted Answer

A) running water. 
B) heat. 
C) a dishwasher. 
D) a working stove. 
A) running water. 
B) heat. 
C) a dishwasher. 
D) a working stove.

Question 19

Small-,low-,or no-interest mortgage loans that are essentially second mortgages provided by states,counties and local governments.

Accepted Answer

A) True 
 B)False

Question 20

The primary disadvantage of a 15-year mortgage as compared to a longer mortgage is the

Accepted Answer

A) speed of equity buildup. 
B) amount of interest paid. 
C) amount of the monthly payment. 
D) speed of debt payoff. 
A) speed of equity buildup. 
B) amount of interest paid. 
C) amount of the monthly payment. 
D) speed of debt payoff.

A ____ is a typical feature of seller financing when you buy a home.

A land contract is also called a

The difference between the amount owed and what the lender collects at the short sale is referred to as the

Property taxes are based on the ____ of the house.

Real estate transfer taxes can affect the price a seller is willing to accept for a home.

A buyer's agent or broker serves as the buyer's representative in the real estate negotiations and transaction.

Lenders in the sub-prime market offer loans

The back-end ratio compares all monthly debt payments and housing costs to gross monthly income.

Home warranty insurance is quite similar to a service contract on a vehicle or other product.

The term cooperative describes a method of ownership for housing rather than a type of building.

The tax deductible expenses related to home ownership are

________ clauses specify that certain conditions must be satisfied before a home purchase contract is binding.

VA-guaranteed mortgages are very much like FHA-insured mortgages except they

The portion of a mortgage payment that is applied to the principal increases quickly in the early years of the loan.

Which of the following is not a characteristic of a second mortgage loan?

Monthly fees assessed to buyers of cooperatives include funds for

Homeowners may find it advantageous to refinance a mortgage when interest rates rise.

Habitability standards for rental property would not include things such as

Small-,low-,or no-interest mortgage loans that are essentially second mortgages provided by states,counties and local governments.

The primary disadvantage of a 15-year mortgage as compared to a longer mortgage is the

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

A ____ is a typical feature of seller financing when you buy a home.

A land contract is also called a

The difference between the amount owed and what the lender collects at the short sale is referred to as the

Property taxes are based on the ____ of the house.

Real estate transfer taxes can affect the price a seller is willing to accept for a home.

A buyer's agent or broker serves as the buyer's representative in the real estate negotiations and transaction.

Lenders in the sub-prime market offer loans

The back-end ratio compares all monthly debt payments and housing costs to gross monthly income.

Home warranty insurance is quite similar to a service contract on a vehicle or other product.

The term cooperative describes a method of ownership for housing rather than a type of building.

The tax deductible expenses related to home ownership are

________ clauses specify that certain conditions must be satisfied before a home purchase contract is binding.

VA-guaranteed mortgages are very much like FHA-insured mortgages except they

The portion of a mortgage payment that is applied to the principal increases quickly in the early years of the loan.

Which of the following is not a characteristic of a second mortgage loan?

Monthly fees assessed to buyers of cooperatives include funds for

Homeowners may find it advantageous to refinance a mortgage when interest rates rise.

Habitability standards for rental property would not include things such as

Small-,low-,or no-interest mortgage loans that are essentially second mortgages provided by states,counties and local governments.

The primary disadvantage of a 15-year mortgage as compared to a longer mortgage is the

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