Question 1

A common opportunity cost associated with renting is

Accepted Answer

A) interest lost on the down payment. 
B) interest lost on closing costs. 
C) property taxes. 
D) maintenance costs. 
E) interest lost on the security deposit. 
A) interest lost on the down payment. 
B) interest lost on closing costs. 
C) property taxes. 
D) maintenance costs. 
E) interest lost on the security deposit.

Question 2

At the end of the lease you should?

Accepted Answer

A) Select area and amount 
B) Contact the owner regarding repairs 
C) Verify start dates and costs 
D) Require deductions from the security deposit be documented 
E) Talk to current residents 
A) Select area and amount 
B) Contact the owner regarding repairs 
C) Verify start dates and costs 
D) Require deductions from the security deposit be documented 
E) Talk to current residents

Question 3

The purpose of title insurance is to

Accepted Answer

A) transfer ownership of property. 
B) reduce the chance of a decrease in property value. 
C) guarantee the boundaries of the property. 
D) protect an owner from changes in mortgage interest rates. 
E) cover the closing costs of a real estate transaction. 
A) transfer ownership of property. 
B) reduce the chance of a decrease in property value. 
C) guarantee the boundaries of the property. 
D) protect an owner from changes in mortgage interest rates. 
E) cover the closing costs of a real estate transaction.

Question 4

Real estate agents will provide you with services and are paid commission on the selling of a home.

Accepted Answer

A) True 
 B)False

Question 5

A home equity loan is also referred to as a ____________ mortgage.

Accepted Answer

A) shared appreciation 
B) graduated payment 
C) growing equity 
D) second 
E) buy down 
A) shared appreciation 
B) graduated payment 
C) growing equity 
D) second 
E) buy down

Question 6

Ease of mobility is an advantage of renting.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of a conventional mortgage?

Accepted Answer

A) a First Home mortgage 
B) a buy down 
C) a fixed rate mortgage 
D) a shared appreciation mortgage 
E) a home equity loan 
A) a First Home mortgage 
B) a buy down 
C) a fixed rate mortgage 
D) a shared appreciation mortgage 
E) a home equity loan

Question 8

If your CMHC premium percentage is 0.75%, what is the maximum loan to value ratio?

Accepted Answer

A) 65% 
B) 75% 
C) 80% 
D) 85% 
E) 90% 
A) 65% 
B) 75% 
C) 80% 
D) 85% 
E) 90%

Question 9

Many people believe that location is the most important factor to consider when selecting a home.

Accepted Answer

A) True 
 B)False

Question 10

A disadvantage of owing a new home is:

Accepted Answer

A) Higher utility expenses 
B) Difficult to sell 
C) Pay GST 
D) Limited remodeling 
E) Limited mobility 
A) Higher utility expenses 
B) Difficult to sell 
C) Pay GST 
D) Limited remodeling 
E) Limited mobility

Question 11

A lease does not protect tenants from rent increases during the term of the lease.

Accepted Answer

A) True 
 B)False

Question 12

A home appraisal typically costs (for the purchase of a home)?

Accepted Answer

A) $200-300 
B) $750-1000 
C) $400-1500 
D) $500-2000 
E) $2,000+ 
A) $200-300 
B) $750-1000 
C) $400-1500 
D) $500-2000 
E) $2,000+

Question 13

Which of the following would increase the speed of equity growth for a homebuyer?

Accepted Answer

A) making a down payment of 10 percent instead of 20 percent 
B) obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C) obtaining a 15-year mortgage instead of a 30-year mortgage 
D) making larger deposits to the escrow account 
E) making smaller deposit to the escrow account 
A) making a down payment of 10 percent instead of 20 percent 
B) obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C) obtaining a 15-year mortgage instead of a 30-year mortgage 
D) making larger deposits to the escrow account 
E) making smaller deposit to the escrow account

Question 14

A conventional mortgage usually involves

Accepted Answer

A) a variable interest rate. 
B) a government guarantee. 
C) a balloon payment. 
D) equal payments. 
E) a payment cap. 
A) a variable interest rate. 
B) a government guarantee. 
C) a balloon payment. 
D) equal payments. 
E) a payment cap.

Question 15

If your CMHC premium percentage is 2.48%, what is the maximum loan to value ratio?

Accepted Answer

A) 65% 
B) 75% 
C) 80% 
D) 85% 
E) 90% 
A) 65% 
B) 75% 
C) 80% 
D) 85% 
E) 90%

Question 16

Approximately ________ percent of mortgages issued in the United States to sub-prime borrowers were adjustable-rate mortgages

Accepted Answer

A) 100 
B) 80 
C) 60 
D) 40 
E) 20 
A) 100 
B) 80 
C) 60 
D) 40 
E) 20

Question 17

Zoning laws are restrictions on how the property area can be used.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following are disadvantages of home ownership?

Accepted Answer

A) limited responsibility 
B) few financial benefits 
C) low initial costs. 
D) financial commitment. 
E) lifestyle flexibility. 
A) limited responsibility 
B) few financial benefits 
C) low initial costs. 
D) financial commitment. 
E) lifestyle flexibility.

Question 19

Cooperative housing involves the renting of a living unit by the people involved in ownership of the building on a nonprofit basis.

Accepted Answer

A) True 
 B)False

Question 20

If you sell your home without the use of a real estate agent, you should still make use of a

Accepted Answer

A) broker. 
B) insurance agent. 
C) lawyer. 
D) contractor. 
E) rental agent. 
A) broker. 
B) insurance agent. 
C) lawyer. 
D) contractor. 
E) rental agent.

A common opportunity cost associated with renting is

At the end of the lease you should?

The purpose of title insurance is to

Real estate agents will provide you with services and are paid commission on the selling of a home.

A home equity loan is also referred to as a ____________ mortgage.

Ease of mobility is an advantage of renting.

Which of the following is an example of a conventional mortgage?

If your CMHC premium percentage is 0.75%, what is the maximum loan to value ratio?

Many people believe that location is the most important factor to consider when selecting a home.

A disadvantage of owing a new home is:

A lease does not protect tenants from rent increases during the term of the lease.

A home appraisal typically costs (for the purchase of a home)?

Which of the following would increase the speed of equity growth for a homebuyer?

A conventional mortgage usually involves

If your CMHC premium percentage is 2.48%, what is the maximum loan to value ratio?

Approximately ________ percent of mortgages issued in the United States to sub-prime borrowers were adjustable-rate mortgages

Zoning laws are restrictions on how the property area can be used.

Which of the following are disadvantages of home ownership?

Cooperative housing involves the renting of a living unit by the people involved in ownership of the building on a nonprofit basis.

If you sell your home without the use of a real estate agent, you should still make use of a

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 7: The Finances of Housing

A common opportunity cost associated with renting is

At the end of the lease you should?

The purpose of title insurance is to

Real estate agents will provide you with services and are paid commission on the selling of a home.

A home equity loan is also referred to as a ____________ mortgage.

Ease of mobility is an advantage of renting.

Which of the following is an example of a conventional mortgage?

If your CMHC premium percentage is 0.75%, what is the maximum loan to value ratio?

Many people believe that location is the most important factor to consider when selecting a home.

A disadvantage of owing a new home is:

A lease does not protect tenants from rent increases during the term of the lease.

A home appraisal typically costs (for the purchase of a home)?

Which of the following would increase the speed of equity growth for a homebuyer?

A conventional mortgage usually involves

If your CMHC premium percentage is 2.48%, what is the maximum loan to value ratio?

Approximately ________ percent of mortgages issued in the United States to sub-prime borrowers were adjustable-rate mortgages

Zoning laws are restrictions on how the property area can be used.

Which of the following are disadvantages of home ownership?

Cooperative housing involves the renting of a living unit by the people involved in ownership of the building on a nonprofit basis.

If you sell your home without the use of a real estate agent, you should still make use of a

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters