Question 1

The profits made by selling a home can be tax-free.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is (are) typical when a mortgage is assumed?

Accepted Answer

A) The buyer obtains the loan at a rate of interest below current market rates. 
B) The mortgage is not assumable if there is a due-on-sale clause. 
C) The buyer takes responsibility for the mortgage payments. 
D) All of these. 
A) The buyer obtains the loan at a rate of interest below current market rates. 
B) The mortgage is not assumable if there is a due-on-sale clause. 
C) The buyer takes responsibility for the mortgage payments. 
D) All of these.

Question 3

The time between when a homeowner is in default on a mortgage and when the lender has filed a formal notice of foreclosure is called

Accepted Answer

A) preforeclosure. 
B) the foreclosure auction period. 
C) the short sale window. 
D) the underwater period. 
A) preforeclosure. 
B) the foreclosure auction period. 
C) the short sale window. 
D) the underwater period.

Question 4

The subprime market serves higher-risk applicants with low credit scores.

Accepted Answer

A) True 
 B)False

Question 5

High-risk applicants of mortgage loans are referred to lenders in the sub-prime market.

Accepted Answer

A) True 
 B)False

Question 6

Earnest money is the sum of money the home buyer pays to

Accepted Answer

A) the realtor for his or her help in finding the desired home. 
B) the realtor for his or her help in finding desirable financing. 
C) the lender to originate the mortgage loan. 
D) hold the house while negotiating. 
A) the realtor for his or her help in finding the desired home. 
B) the realtor for his or her help in finding desirable financing. 
C) the lender to originate the mortgage loan. 
D) hold the house while negotiating.

Question 7

One point is equal to 1 percent of the price of the house.

Accepted Answer

A) True 
 B)False

Question 8

Selling your home yourself is commonly referred to as a FSBO (pronounced "fizzbo") sale.

Accepted Answer

A) True 
 B)False

Question 9

The mortgage clause that prohibits a seller from letting a new buyer assume the mortgage is the ____ clause.

Accepted Answer

A) due-on-sale 
B) prepayment 
C) contingency 
D) accelerator 
A) due-on-sale 
B) prepayment 
C) contingency 
D) accelerator

Question 10

The term condominium describes a type of building rather than a form of ownership.

Accepted Answer

A) True 
 B)False

Question 11

Nearly ____ percent of households headed by persons under age 25 are renters.

Accepted Answer

A) 60 
B) 70 
C) 80 
D) 90 
A) 60 
B) 70 
C) 80 
D) 90

Question 12

Some real estate brokers work for a flat fee rather than a commission based on the price of the house.

Accepted Answer

A) True 
 B)False

Question 13

A mortgage lock-in is the lender's promise to

Accepted Answer

A) grant a loan. 
B) hold a certain interest rate for a period of time. 
C) pay interest on money held in escrow. 
D) schedule a specific date for the closing. 
A) grant a loan. 
B) hold a certain interest rate for a period of time. 
C) pay interest on money held in escrow. 
D) schedule a specific date for the closing.

Question 14

Mortgage lock-ins have a 30- or 60-day limit.For a fee you can buy more time through a

Accepted Answer

A) a settlement extension. 
B) lock extension. 
C) contingency clause. 
D) rate hold. 
A) a settlement extension. 
B) lock extension. 
C) contingency clause. 
D) rate hold.

Question 15

Federal regulations require that interest must be paid on security deposits.

Accepted Answer

A) True 
 B)False

Question 16

Mortgage ____ occurs when a new mortgage is obtained to pay off an existing mortgage.

Accepted Answer

A) amortization 
B) subleasing 
C) appreciation 
D) refinancing 
A) amortization 
B) subleasing 
C) appreciation 
D) refinancing

Question 17

____ insurance is generally required when a borrower makes a minimum down payment.

Accepted Answer

A) Title 
B) Homeowner's 
C) Mortgage 
D) Liability 
A) Title 
B) Homeowner's 
C) Mortgage 
D) Liability

Question 18

The purpose of a biweekly loan is to

Accepted Answer

A) shorten the repayment period of a loan. 
B) enhance the tax advantages of home ownership. 
C) pay smaller monthly payments. 
D) slow equity buildup. 
A) shorten the repayment period of a loan. 
B) enhance the tax advantages of home ownership. 
C) pay smaller monthly payments. 
D) slow equity buildup.

Question 19

In a difficult housing market,borrowers simply choose not to pay their mortgage allowing the home to be foreclosed in a practice called negative amortization.

Accepted Answer

A) True 
 B)False

Question 20

All homes for sale carry some type of implied warranty.

Accepted Answer

A) True 
 B)False

The profits made by selling a home can be tax-free.

Which of the following is (are) typical when a mortgage is assumed?

The time between when a homeowner is in default on a mortgage and when the lender has filed a formal notice of foreclosure is called

The subprime market serves higher-risk applicants with low credit scores.

High-risk applicants of mortgage loans are referred to lenders in the sub-prime market.

Earnest money is the sum of money the home buyer pays to

One point is equal to 1 percent of the price of the house.

Selling your home yourself is commonly referred to as a FSBO (pronounced "fizzbo") sale.

The mortgage clause that prohibits a seller from letting a new buyer assume the mortgage is the ____ clause.

The term condominium describes a type of building rather than a form of ownership.

Nearly ____ percent of households headed by persons under age 25 are renters.

Some real estate brokers work for a flat fee rather than a commission based on the price of the house.

A mortgage lock-in is the lender's promise to

Mortgage lock-ins have a 30- or 60-day limit.For a fee you can buy more time through a

Federal regulations require that interest must be paid on security deposits.

Mortgage ____ occurs when a new mortgage is obtained to pay off an existing mortgage.

____ insurance is generally required when a borrower makes a minimum down payment.

The purpose of a biweekly loan is to

In a difficult housing market,borrowers simply choose not to pay their mortgage allowing the home to be foreclosed in a practice called negative amortization.

All homes for sale carry some type of implied warranty.

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

Exam 9: Obtaining Affordable Housing

The profits made by selling a home can be tax-free.

Which of the following is (are) typical when a mortgage is assumed?

The time between when a homeowner is in default on a mortgage and when the lender has filed a formal notice of foreclosure is called

The subprime market serves higher-risk applicants with low credit scores.

High-risk applicants of mortgage loans are referred to lenders in the sub-prime market.

Earnest money is the sum of money the home buyer pays to

One point is equal to 1 percent of the price of the house.

Selling your home yourself is commonly referred to as a FSBO (pronounced "fizzbo") sale.

The mortgage clause that prohibits a seller from letting a new buyer assume the mortgage is the ____ clause.

The term condominium describes a type of building rather than a form of ownership.

Nearly ____ percent of households headed by persons under age 25 are renters.

Some real estate brokers work for a flat fee rather than a commission based on the price of the house.

A mortgage lock-in is the lender's promise to

Mortgage lock-ins have a 30- or 60-day limit.For a fee you can buy more time through a

Federal regulations require that interest must be paid on security deposits.

Mortgage ____ occurs when a new mortgage is obtained to pay off an existing mortgage.

____ insurance is generally required when a borrower makes a minimum down payment.

The purpose of a biweekly loan is to

In a difficult housing market,borrowers simply choose not to pay their mortgage allowing the home to be foreclosed in a practice called negative amortization.

All homes for sale carry some type of implied warranty.

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