Question 1

What does it mean to sublet an apartment?

Accepted Answer

A)  Increase the rent 
B)  Lower maintenance costs 
C)  Convert the units to condominiums 
D)  Meet certain government housing regulations 
E)  Obtain another tenant to complete a lease period 
A)  Increase the rent 
B)  Lower maintenance costs 
C)  Convert the units to condominiums 
D)  Meet certain government housing regulations 
E)  Obtain another tenant to complete a lease period

Question 2

The amount of the down payment will affect the amount of the monthly mortgage needed to purchase a home.

Accepted Answer

A) True 
 B)False

Question 3

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)  Obtaining an interest-only mortgage 
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)  Obtaining an interest-only mortgage

Question 4

Which one of the following is an advantage of renting?

Accepted Answer

A)  Unrestricted lifestyle 
B)  Tax benefits 
C)  Fewer responsibilities 
D)  An ability to build equity 
E)  Increased equity 
A)  Unrestricted lifestyle 
B)  Tax benefits 
C)  Fewer responsibilities 
D)  An ability to build equity 
E)  Increased equity

Question 5

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

Accepted Answer

A)  decreasing the value of the collateral. 
B)  lowering the down payment. 
C)  increasing other debt obligations. 
D)  lowering the family's income. 
E)  decreasing the interest rate. 
A)  decreasing the value of the collateral. 
B)  lowering the down payment. 
C)  increasing other debt obligations. 
D)  lowering the family's income. 
E)  decreasing the interest rate.

Question 6

Private Mortgage Insurance (PMI) is usually required if the down payment is less than _____ percent of the purchase price of the home.

Accepted Answer

A)  5 
B)  8 
C)  12 
D)  15 
E)  20 
A)  5 
B)  8 
C)  12 
D)  15 
E)  20

Question 7

Prepaid interest may be a part of a mortgage agreement.

Accepted Answer

A) True 
 B)False

Question 8

A lease is a legal document that protects the rights of:

Accepted Answer

A)  the landlord 
B)  the builder 
C)  the realtor 
D)  the tenant 
E)  both the landlord and the tenant. 
A)  the landlord 
B)  the builder 
C)  the realtor 
D)  the tenant 
E)  both the landlord and the tenant.

Question 9

Most people select a place of residence based on the following criteria:

Accepted Answer

A)  lifestyle. 
B)  needs. 
C)  financial resources. 
D)  attitudes. 
E)  All of these. 
A)  lifestyle. 
B)  needs. 
C)  financial resources. 
D)  attitudes. 
E)  All of these.

Question 10

Condominiums involve the purchase of an individual living unit rather than an entire building.

Accepted Answer

A) True 
 B)False

Question 11

Which of these is a common financial benefit of home ownership?

Accepted Answer

A)  Low security deposit 
B)  Tax deductibility of the down payment 
C)  Amortization of the equity 
D)  Increased property value 
E)  No maintenance cost 
A)  Low security deposit 
B)  Tax deductibility of the down payment 
C)  Amortization of the equity 
D)  Increased property value 
E)  No maintenance cost

Question 12

The reduction of a loan balance through payments made over a period of time is called:

Accepted Answer

A)  a buy-down. 
B)  shared-appreciation. 
C)  prepaid interest. 
D)  amortization. 
E)  a rate cap. 
A)  a buy-down. 
B)  shared-appreciation. 
C)  prepaid interest. 
D)  amortization. 
E)  a rate cap.

Question 13

Legislation that requires that loan applicants be given certain information, including an estimate of closing costs, before the closing is known as:

Accepted Answer

A)  the Real Estate Settlement Procedures Act. 
B)  the Cooperative Lending Act. 
C)  the Truth in Lending Act. 
D)  the Title Insurance Act. 
E)  the Real Estate Investment Act. 
A)  the Real Estate Settlement Procedures Act. 
B)  the Cooperative Lending Act. 
C)  the Truth in Lending Act. 
D)  the Title Insurance Act. 
E)  the Real Estate Investment Act.

Question 14

Natasha and Al received a statement reporting that they paid $8,000 in mortgage interest during the past year. If they are in a 28 percent tax bracket, this deduction may reduce their taxable income by:

Accepted Answer

A)  $1,000. 
B)  $2,240. 
C)  $3,000. 
D)  $4,000. 
E)  $8,000.
Taxable income is reduced by the $8,000 of mortgage interest. 
A)  $1,000. 
B)  $2,240. 
C)  $3,000. 
D)  $4,000. 
E)  $8,000.
Taxable income is reduced by the $8,000 of mortgage interest.

Question 15

John Ashford needs to sell his home because of a job transfer to another city. What actions should John take to sell his home?

Accepted Answer

1. Find a real estate agent: John should

Question 16

A cost associated with home buying would be:

Accepted Answer

A)  renter's insurance. 
B)  the security deposit. 
C)  annual appreciation of the property. 
D)  property taxes. 
E)  interest lost on the security deposit. 
A)  renter's insurance. 
B)  the security deposit. 
C)  annual appreciation of the property. 
D)  property taxes. 
E)  interest lost on the security deposit.

Question 17

What is the most popular type of home ownership?

Accepted Answer

A)  Condominium 
B)  Duplex 
C)  Cooperative 
D)  Prefabricated home 
E)  Single family dwelling 
A)  Condominium 
B)  Duplex 
C)  Cooperative 
D)  Prefabricated home 
E)  Single family dwelling

Question 18

Refinancing of a mortgage is recommended when:

Accepted Answer

A)  interest rates rise. 
B)  interest rates fall. 
C)  the escrow account balance declines. 
D)  two or more points are required by the lender at the time of closing. 
E)  the escrow account balance increases. 
A)  interest rates rise. 
B)  interest rates fall. 
C)  the escrow account balance declines. 
D)  two or more points are required by the lender at the time of closing. 
E)  the escrow account balance increases.

Question 19

A contract condition that states that the agreement is binding only if a certain event occurs is a(n):

Accepted Answer

A)  dual agency. 
B)  contingency clause. 
C)  counteroffer. 
D)  zoning law. 
E)  prefabrication. 
A)  dual agency. 
B)  contingency clause. 
C)  counteroffer. 
D)  zoning law. 
E)  prefabrication.

Question 20

A VA-guaranteed loan program provides assistance to:

Accepted Answer

A)  military veterans. 
B)  recent college graduates. 
C)  low-income homebuyers. 
D)  government employees. 
E)  the elderly. 
A)  military veterans. 
B)  recent college graduates. 
C)  low-income homebuyers. 
D)  government employees. 
E)  the elderly.

What does it mean to sublet an apartment?

The amount of the down payment will affect the amount of the monthly mortgage needed to purchase a home.

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

Which one of the following is an advantage of renting?

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

Private Mortgage Insurance (PMI) is usually required if the down payment is less than _____ percent of the purchase price of the home.

Prepaid interest may be a part of a mortgage agreement.

A lease is a legal document that protects the rights of:

Most people select a place of residence based on the following criteria:

Condominiums involve the purchase of an individual living unit rather than an entire building.

Which of these is a common financial benefit of home ownership?

The reduction of a loan balance through payments made over a period of time is called:

Legislation that requires that loan applicants be given certain information, including an estimate of closing costs, before the closing is known as:

Natasha and Al received a statement reporting that they paid $8,000 in mortgage interest during the past year. If they are in a 28 percent tax bracket, this deduction may reduce their taxable income by:

John Ashford needs to sell his home because of a job transfer to another city. What actions should John take to sell his home?

A cost associated with home buying would be:

What is the most popular type of home ownership?

Refinancing of a mortgage is recommended when:

A contract condition that states that the agreement is binding only if a certain event occurs is a(n):

A VA-guaranteed loan program provides assistance to:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 9: The Housing Decision: Factors and Finances

What does it mean to sublet an apartment?

The amount of the down payment will affect the amount of the monthly mortgage needed to purchase a home.

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

Which one of the following is an advantage of renting?

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

Private Mortgage Insurance (PMI) is usually required if the down payment is less than _____ percent of the purchase price of the home.

Prepaid interest may be a part of a mortgage agreement.

A lease is a legal document that protects the rights of:

Most people select a place of residence based on the following criteria:

Condominiums involve the purchase of an individual living unit rather than an entire building.

Which of these is a common financial benefit of home ownership?

The reduction of a loan balance through payments made over a period of time is called:

Legislation that requires that loan applicants be given certain information, including an estimate of closing costs, before the closing is known as:

Natasha and Al received a statement reporting that they paid $8,000 in mortgage interest during the past year. If they are in a 28 percent tax bracket, this deduction may reduce their taxable income by:

John Ashford needs to sell his home because of a job transfer to another city. What actions should John take to sell his home?

A cost associated with home buying would be:

What is the most popular type of home ownership?

Refinancing of a mortgage is recommended when:

A contract condition that states that the agreement is binding only if a certain event occurs is a(n):

A VA-guaranteed loan program provides assistance to:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters