Question 1

A lease only protects the rights of the tenant.

Accepted Answer

A) True 
 B)False

Question 2

Step three of the home buying process is?

Accepted Answer

A) Determine home ownership needs 
B) Find and evaluate a property to purchase 
C) Price the property 
D) Obtain Financing 
E) Close the purchase transaction 
A) Determine home ownership needs 
B) Find and evaluate a property to purchase 
C) Price the property 
D) Obtain Financing 
E) Close the purchase transaction

Question 3

What is the maximum CMHC premium percentage

Accepted Answer

A) 1.25% 
B) 1.8% 
C) 2.4% 
D) 3.6% 
E) 3.8% 
A) 1.25% 
B) 1.8% 
C) 2.4% 
D) 3.6% 
E) 3.8%

Question 4

Financial guidelines suggest that you should "spend no more than 25 to 30 percent of your take home pay on housing".

Accepted Answer

A) True 
 B)False

Question 5

Real estate agents will provide you with services using an hourly rate.

Accepted Answer

A) True 
 B)False

Question 6

The main financial benefit of renting is

Accepted Answer

A) tax deductions. 
B) increased equity. 
C) investment value growth. 
D) lower initial costs. 
E) high financial commitment. 
A) tax deductions. 
B) increased equity. 
C) investment value growth. 
D) lower initial costs. 
E) high financial commitment.

Question 7

Which of the following are disadvantages of home ownership?

Accepted Answer

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

Question 8

A split-rate mortgage helps to reduce interest rate risk.

Accepted Answer

A) True 
 B)False

Question 9

The term "sub-prime mortgage crisis" refers to

Accepted Answer

A) the difficulty new home owners have in negotiating a low interest rate with banks 
B) obtaining a mortgage interest rate of 8 percent instead of 7 percent 
C) the financial crisis precipitated in 2007 after a sharp increase in mortgage foreclosures 
D) lower interest rates on shorter term mortgages than longer term mortgages 
E) higher interest rates on shorter term mortgages than longer term mortgages 
A) the difficulty new home owners have in negotiating a low interest rate with banks 
B) obtaining a mortgage interest rate of 8 percent instead of 7 percent 
C) the financial crisis precipitated in 2007 after a sharp increase in mortgage foreclosures 
D) lower interest rates on shorter term mortgages than longer term mortgages 
E) higher interest rates on shorter term mortgages than longer term mortgages

Question 10

The total debt service ratio is your monthly mortgage payment and other outstanding debts as a percentage of your gross monthly income.

Accepted Answer

A) True 
 B)False

Question 11

Legal fees (for the purchase of a home typically costs)?

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 12

An escrow account is designed to reduce the cost of a mortgage.

Accepted Answer

A) True 
 B)False

Question 13

The purpose of an appraisal is to

Accepted Answer

A) estimate the current value of a home. 
B) reduce the amount paid for property taxes. 
C) qualify for a reduced mortgage rate. 
D) eliminate the need for home insurance. 
E) reduce the mortgage payments. 
A) estimate the current value of a home. 
B) reduce the amount paid for property taxes. 
C) qualify for a reduced mortgage rate. 
D) eliminate the need for home insurance. 
E) reduce the mortgage payments.

Question 14

The amount of mortgage a person is eligible for would be increased by

Accepted Answer

A) higher interest rates. 
B) a lower down payment. 
C) high debt obligations. 
D) a low family income. 
E) lower interest rates. 
A) higher interest rates. 
B) a lower down payment. 
C) high debt obligations. 
D) a low family income. 
E) lower interest rates.

Question 15

Past interest rates can affect the price of a home.

Accepted Answer

A) True 
 B)False

Question 16

The amount of mortgage a person is eligible for would be increased by

Accepted Answer

A) higher interest rates. 
B) a lower down payment. 
C) high debt obligations. 
D) a low family income. 
E) a larger down payment. 
A) higher interest rates. 
B) a lower down payment. 
C) high debt obligations. 
D) a low family income. 
E) a larger down payment.

Question 17

Negative amortization has the effect of:

Accepted Answer

A) extending the number of payments to pay off the mortgage. 
B) decreasing the number of payments to pay off the mortgage. 
C) a lower escrow account. 
D) lower interest rates. 
E) a lower down payment. 
A) extending the number of payments to pay off the mortgage. 
B) decreasing the number of payments to pay off the mortgage. 
C) a lower escrow account. 
D) lower interest rates. 
E) a lower down payment.

Question 18

The purpose of a rate cap with a variable rate mortgage is to

Accepted Answer

A) minimize interest costs. 
B) prevent changes in the amount of the monthly payment. 
C) increase negative amortization. 
D) restrict the amount by which the interest rate can increase. 
E) lower the escrow account. 
A) minimize interest costs. 
B) prevent changes in the amount of the monthly payment. 
C) increase negative amortization. 
D) restrict the amount by which the interest rate can increase. 
E) lower the escrow account.

Question 19

The most commonly considered factor when selecting a home is the

Accepted Answer

A) size of the home. 
B) condition of the home. 
C) location of the home. 
D) local zoning laws. 
E) current interest rates. 
A) size of the home. 
B) condition of the home. 
C) location of the home. 
D) local zoning laws. 
E) current interest rates.

Question 20

At the closing of home purchase, the "earnest" money has the purpose of:

Accepted Answer

A) paying real estate property taxes. 
B) reducing the mortgage interest rate. 
C) paying a mortgage application fee. 
D) paying the real estate agent's commission. 
E) serving as evidence of serious intent. 
A) paying real estate property taxes. 
B) reducing the mortgage interest rate. 
C) paying a mortgage application fee. 
D) paying the real estate agent's commission. 
E) serving as evidence of serious intent.

A lease only protects the rights of the tenant.

Step three of the home buying process is?

What is the maximum CMHC premium percentage

Financial guidelines suggest that you should "spend no more than 25 to 30 percent of your take home pay on housing".

Real estate agents will provide you with services using an hourly rate.

The main financial benefit of renting is

Which of the following are disadvantages of home ownership?

A split-rate mortgage helps to reduce interest rate risk.

The term "sub-prime mortgage crisis" refers to

The total debt service ratio is your monthly mortgage payment and other outstanding debts as a percentage of your gross monthly income.

Legal fees (for the purchase of a home typically costs)?

An escrow account is designed to reduce the cost of a mortgage.

The purpose of an appraisal is to

The amount of mortgage a person is eligible for would be increased by

Past interest rates can affect the price of a home.

The amount of mortgage a person is eligible for would be increased by

Negative amortization has the effect of:

The purpose of a rate cap with a variable rate mortgage is to

The most commonly considered factor when selecting a home is the

At the closing of home purchase, the "earnest" money has the purpose of:

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 lease only protects the rights of the tenant.

Step three of the home buying process is?

What is the maximum CMHC premium percentage

Financial guidelines suggest that you should "spend no more than 25 to 30 percent of your take home pay on housing".

Real estate agents will provide you with services using an hourly rate.

The main financial benefit of renting is

Which of the following are disadvantages of home ownership?

A split-rate mortgage helps to reduce interest rate risk.

The term "sub-prime mortgage crisis" refers to

The total debt service ratio is your monthly mortgage payment and other outstanding debts as a percentage of your gross monthly income.

Legal fees (for the purchase of a home typically costs)?

An escrow account is designed to reduce the cost of a mortgage.

The purpose of an appraisal is to

The amount of mortgage a person is eligible for would be increased by

Past interest rates can affect the price of a home.

The amount of mortgage a person is eligible for would be increased by

Negative amortization has the effect of:

The purpose of a rate cap with a variable rate mortgage is to

The most commonly considered factor when selecting a home is the

At the closing of home purchase, the "earnest" money has the purpose of:

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