Question 1

The purpose of a counteroffer is to:

Accepted Answer

A)  negotiate the purchase price. 
B)  reduce mortgage payments. 
C)  lower real estate property taxes. 
D)  avoid paying points at closing. 
E)  avoid paying the real estate agent's commission. 
A)  negotiate the purchase price. 
B)  reduce mortgage payments. 
C)  lower real estate property taxes. 
D)  avoid paying points at closing. 
E)  avoid paying the real estate agent's commission.

Question 2

Home improvements may contribute more to the value of the home than the cost of the renovations.

Accepted Answer

A) True 
 B)False

Question 3

Ease of mobility is an advantage of renting.

Accepted Answer

A) True 
 B)False

Question 4

Prefabricated housing refers to:

Accepted Answer

A)  nonprofit ownership. 
B)  government leasing of living units. 
C)  rental units available to government employees. 
D)  ownership available to low-income individuals. 
E)  housing partially assembled in factories. 
A)  nonprofit ownership. 
B)  government leasing of living units. 
C)  rental units available to government employees. 
D)  ownership available to low-income individuals. 
E)  housing partially assembled in factories.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Money that is usually deposited with the lending institution for the payment of property taxes and homeowner's insurance is called:

Accepted Answer

A)  points. 
B)  an escrow account. 
C)  a rate cap. 
D)  closing costs. 
E)  a buy-down. 
A)  points. 
B)  an escrow account. 
C)  a rate cap. 
D)  closing costs. 
E)  a buy-down.

Question 7

A payment cap keeps the payments on an adjustable-rate mortgage at a given level or limits the amount to which those payments can rise.

Accepted Answer

A) True 
 B)False

Question 8

Amortization refers to changes in the monthly payment for a variable rate mortgage.

Accepted Answer

A) True 
 B)False

Question 9

A condominium involves:

Accepted Answer

A)  renting a mobile home. 
B)  buying stock in a nonprofit organization. 
C)  ownership of an individual living unit. 
D)  government-subsidized housing. 
E)  renting a house with the option to buy. 
A)  renting a mobile home. 
B)  buying stock in a nonprofit organization. 
C)  ownership of an individual living unit. 
D)  government-subsidized housing. 
E)  renting a house with the option to buy.

Question 10

Earnest money is used:

Accepted Answer

A)  to pay real estate property taxes. 
B)  to reduce the mortgage interest rate. 
C)  as evidence of good faith by a homebuyer. 
D)  to pay the real estate agent's commission. 
E)  to pay a mortgage application fee. 
A)  to pay real estate property taxes. 
B)  to reduce the mortgage interest rate. 
C)  as evidence of good faith by a homebuyer. 
D)  to pay the real estate agent's commission. 
E)  to pay a mortgage application fee.

Question 11

The purpose of a security deposit is to:

Accepted Answer

A)  pay for potential damages. 
B)  cover the costs of utilities. 
C)  pay for the tenant's portion of real estate property taxes. 
D)  cover increases in monthly rent. 
E)  meet government housing regulations for a safe building. 
A)  pay for potential damages. 
B)  cover the costs of utilities. 
C)  pay for the tenant's portion of real estate property taxes. 
D)  cover increases in monthly rent. 
E)  meet government housing regulations for a safe building.

Question 12

An appraisal refers to the price for which a home has been sold.

Accepted Answer

A) True 
 B)False

Question 13

Differentiate between a cooperative and a condominium. Be sure to include a discussion of the ownership and responsibility for the common areas.

Accepted Answer

The answer of Differentiate between a cooperative and a condominium....

Question 14

The Homeowners Protection Act requires that a PMI policy be terminated automatically when a homeowner's equity reaches _____ percent of the property value at the time the mortgage was executed.

Accepted Answer

A)  5 
B)  9 
C)  12 
D)  18 
E)  22 
A)  5 
B)  9 
C)  12 
D)  18 
E)  22

Question 15

The most common service provided by a real estate agent when selling your home is:

Accepted Answer

A)  providing legal advice. 
B)  qualifying buyers for a mortgage. 
C)  screening potential buyers. 
D)  making needed repairs. 
E)  attend home inspection. 
A)  providing legal advice. 
B)  qualifying buyers for a mortgage. 
C)  screening potential buyers. 
D)  making needed repairs. 
E)  attend home inspection.

Question 16

Current interest rates can affect the price of a home.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Kate plans to rent instead of buying her housing. Which advantage of renting will she realize?

Accepted Answer

A)  Tax deductions 
B)  Lower initial costs 
C)  Property appreciation 
D)  Restricted lifestyle 
E)  Home improvement flexibility 
A)  Tax deductions 
B)  Lower initial costs 
C)  Property appreciation 
D)  Restricted lifestyle 
E)  Home improvement flexibility

Question 19

A newly married couple is having trouble affording a home. What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?

Accepted Answer

A)  FHA-insured loan 
B)  Balloon mortgage 
C)  Buy-down 
D)  Shared-appreciation mortgage 
E)  Growing-equity mortgage 
A)  FHA-insured loan 
B)  Balloon mortgage 
C)  Buy-down 
D)  Shared-appreciation mortgage 
E)  Growing-equity mortgage

Question 20

What factors influence the type of housing a family will select?

Accepted Answer

The answer of What factors influence the type of housing...

The purpose of a counteroffer is to:

Home improvements may contribute more to the value of the home than the cost of the renovations.

Ease of mobility is an advantage of renting.

Prefabricated housing refers to:

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

Money that is usually deposited with the lending institution for the payment of property taxes and homeowner's insurance is called:

A payment cap keeps the payments on an adjustable-rate mortgage at a given level or limits the amount to which those payments can rise.

Amortization refers to changes in the monthly payment for a variable rate mortgage.

A condominium involves:

Earnest money is used:

The purpose of a security deposit is to:

An appraisal refers to the price for which a home has been sold.

Differentiate between a cooperative and a condominium. Be sure to include a discussion of the ownership and responsibility for the common areas.

The Homeowners Protection Act requires that a PMI policy be terminated automatically when a homeowner's equity reaches _____ percent of the property value at the time the mortgage was executed.

The most common service provided by a real estate agent when selling your home is:

Current interest rates can affect the price of a home.

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

Kate plans to rent instead of buying her housing. Which advantage of renting will she realize?

A newly married couple is having trouble affording a home. What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?

What factors influence the type of housing a family will select?

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

The purpose of a counteroffer is to:

Home improvements may contribute more to the value of the home than the cost of the renovations.

Ease of mobility is an advantage of renting.

Prefabricated housing refers to:

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

Money that is usually deposited with the lending institution for the payment of property taxes and homeowner's insurance is called:

A payment cap keeps the payments on an adjustable-rate mortgage at a given level or limits the amount to which those payments can rise.

Amortization refers to changes in the monthly payment for a variable rate mortgage.

A condominium involves:

Earnest money is used:

The purpose of a security deposit is to:

An appraisal refers to the price for which a home has been sold.

Differentiate between a cooperative and a condominium. Be sure to include a discussion of the ownership and responsibility for the common areas.

The Homeowners Protection Act requires that a PMI policy be terminated automatically when a homeowner's equity reaches _____ percent of the property value at the time the mortgage was executed.

The most common service provided by a real estate agent when selling your home is:

Current interest rates can affect the price of a home.

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

Kate plans to rent instead of buying her housing. Which advantage of renting will she realize?

A newly married couple is having trouble affording a home. What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?

What factors influence the type of housing a family will select?

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