Question 1

With prequalification,a buyer can ____________. ​

Accepted Answer

A) always negotiate a price lower than the quoted price on the property 
B) set right in advance any problems on his credit report 
C) get a comprehensive list of all the suitable properties in a locality 
D) bargain for additional time in a property deal for the want of funds 
A) always negotiate a price lower than the quoted price on the property 
B) set right in advance any problems on his credit report 
C) get a comprehensive list of all the suitable properties in a locality 
D) bargain for additional time in a property deal for the want of funds B

Question 2

A buydown refers to:

Accepted Answer

A) a mortgage that starts with unusually low payments that rise over several years to a fixed payment. 
B) financing made available by a builder or seller to a potential new-home buyer at well below market interest rates,often only for a short period. 
C) a fixed-rate mortgage with payments that increase over a specific period. 
D) a mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties. 
E) a loan on which payments that equal half the regular annual interest amount are made every six months. 
A) a mortgage that starts with unusually low payments that rise over several years to a fixed payment. 
B) financing made available by a builder or seller to a potential new-home buyer at well below market interest rates,often only for a short period. 
C) a fixed-rate mortgage with payments that increase over a specific period. 
D) a mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties. 
E) a loan on which payments that equal half the regular annual interest amount are made every six months. B

Question 3

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

Accepted Answer

A) True 
 B)False  False

Question 4

When shopping for a lease,you want:

Accepted Answer

A) a high insurance cost. 
B) a low capitalized cost. 
C) a high money factor. 
D) a low residual value. 
E) high lease payments. 
A) a high insurance cost. 
B) a low capitalized cost. 
C) a high money factor. 
D) a low residual value. 
E) high lease payments.

Question 5

At the end of your car lease period,you intend to turn in the car,and you will not pay extra at that time based on the residual value of the car.You have _____ lease.

Accepted Answer

A) a residual 
B) an open-end 
C) a purchase option 
D) a closed-end 
E) a money factor 
A) a residual 
B) an open-end 
C) a purchase option 
D) a closed-end 
E) a money factor

Question 6

As home prices have fallen in recent years,the rent ratio:

Accepted Answer

A) and rent attractiveness have increased. 
B) and rent attractiveness have decreased. 
C) has increased and rent attractiveness has decreased. 
D) has decreased and rent attractiveness has increased. 
E) has increased and rent attractiveness has stabilized. 
A) and rent attractiveness have increased. 
B) and rent attractiveness have decreased. 
C) has increased and rent attractiveness has decreased. 
D) has decreased and rent attractiveness has increased. 
E) has increased and rent attractiveness has stabilized.

Question 7

The Federal Housing Administration _____ to high loan-to-value ratio mortgages.

Accepted Answer

A) guarantee 
B) insurance 
C) subsidies 
D) grants 
E) tax shelters 
A) guarantee 
B) insurance 
C) subsidies 
D) grants 
E) tax shelters

Question 8

The real estate agent's commission is generally paid by ____________. ​

Accepted Answer

A) the seller 
B) the buyer 
C) the mortgage bank 
D) the local multiple listing service provider 
A) the seller 
B) the buyer 
C) the mortgage bank 
D) the local multiple listing service provider

Question 9

Which of the following will help a buyer know ahead of time the specific mortgage amount that he or she will be eligible for subject to changes in rates and term?

Accepted Answer

A) Prequalification 
B) The rent ratio 
C) Leasing 
D) Anchoring 
E) The interest rate 
A) Prequalification 
B) The rent ratio 
C) Leasing 
D) Anchoring 
E) The interest rate

Question 10

A real estate sales contract will include:

Accepted Answer

A) the amount you have paid as an earnest money deposit. 
B) the terms of a mortgage loan taken from a third party. 
C) the future value of similar properties in foreign countries. 
D) the movement in the value of the property over the last 20 years. 
E) the current value of the properties in the neighboring locations. 
A) the amount you have paid as an earnest money deposit. 
B) the terms of a mortgage loan taken from a third party. 
C) the future value of similar properties in foreign countries. 
D) the movement in the value of the property over the last 20 years. 
E) the current value of the properties in the neighboring locations.

Question 11

A lender will usually require a loan-to-value ratio of _____ or less for a borrower to avoid having to pay private mortgage insurance (PMI).

Accepted Answer

A) 75% 
B) 80% 
C) 85% 
D) 90% 
E) 95% 
A) 75% 
B) 80% 
C) 85% 
D) 90% 
E) 95%

Question 12

The job of a mortgage banker is to locate conventional loans for clients.

Accepted Answer

A) True 
 B)False

Question 13

You made a $900 mortgage payment.The interest of $925 on the mortgage for this month leads to an increase in the principal balance.You have ____________. ​

Accepted Answer

A) experienced a negative amortization 
B) signed up for a conventional mortgage 
C) refinanced your loan 
D) taken a fixed-rate mortgage 
A) experienced a negative amortization 
B) signed up for a conventional mortgage 
C) refinanced your loan 
D) taken a fixed-rate mortgage

Question 14

An escrow account is used to collect _____ from one's monthly mortgage payment.

Accepted Answer

A) interest 
B) principal 
C) real estate taxes 
D) closing costs 
E) operating expenses 
A) interest 
B) principal 
C) real estate taxes 
D) closing costs 
E) operating expenses

Question 15

Jacob has taken an SUV on lease from Free Cruisers Inc.for a period of four years.Jacob does not need to pay any extra amount,based on the residual value of the car,at the end of the fourth year.He has a _____.

Accepted Answer

A) residual lease 
B) closed-end lease 
C) purchase option lease 
D) right to early termination lease 
E) reassignment option lease 
A) residual lease 
B) closed-end lease 
C) purchase option lease 
D) right to early termination lease 
E) reassignment option lease

Question 16

Which of the following are tax deductible if one itemizes deductions?

Accepted Answer

A) Principal,interest,real estate taxes,and insurance 
B) Principal,interest,and real estate taxes 
C) Principal and interest 
D) Interest,real estate taxes,and insurance 
E) Interest and real estate taxes 
A) Principal,interest,real estate taxes,and insurance 
B) Principal,interest,and real estate taxes 
C) Principal and interest 
D) Interest,real estate taxes,and insurance 
E) Interest and real estate taxes

Question 17

The seller of the house typically pays the ____________. ​

Accepted Answer

A) appraisal fee. 
B) loan application fee 
C) real estate agent's commission. 
D) title search and insurance. 
A) appraisal fee. 
B) loan application fee 
C) real estate agent's commission. 
D) title search and insurance.

Question 18

If the interest rates and monthly mortgage payments do not change over the life of your mortgage,you have _____.

Accepted Answer

A) a reverse-annuity mortgage 
B) a fixed-rate mortgage 
C) an adjustable-rate mortgage 
D) a rollover mortgage 
E) a graduated-payment mortgage 
A) a reverse-annuity mortgage 
B) a fixed-rate mortgage 
C) an adjustable-rate mortgage 
D) a rollover mortgage 
E) a graduated-payment mortgage

Question 19

The property listing in a local multiple listing service (MLS)cannot be accessed by all buyers and sellers.

Accepted Answer

A) True 
 B)False

Question 20

The majority of each monthly payment at the beginning of the loan goes to pay the:

Accepted Answer

A) principal. 
B) interest. 
C) real estate taxes. 
D) homeowner's insurance. 
E) private mortgage insurance. 
A) principal. 
B) interest. 
C) real estate taxes. 
D) homeowner's insurance. 
E) private mortgage insurance.

With prequalification,a buyer can ____________.

A buydown refers to:

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

When shopping for a lease,you want:

At the end of your car lease period,you intend to turn in the car,and you will not pay extra at that time based on the residual value of the car.You have _____ lease.

As home prices have fallen in recent years,the rent ratio:

The Federal Housing Administration _____ to high loan-to-value ratio mortgages.

The real estate agent's commission is generally paid by ____________.

Which of the following will help a buyer know ahead of time the specific mortgage amount that he or she will be eligible for subject to changes in rates and term?

A real estate sales contract will include:

A lender will usually require a loan-to-value ratio of _____ or less for a borrower to avoid having to pay private mortgage insurance (PMI).

The job of a mortgage banker is to locate conventional loans for clients.

You made a $900 mortgage payment.The interest of $925 on the mortgage for this month leads to an increase in the principal balance.You have ____________.

An escrow account is used to collect _____ from one's monthly mortgage payment.

Jacob has taken an SUV on lease from Free Cruisers Inc.for a period of four years.Jacob does not need to pay any extra amount,based on the residual value of the car,at the end of the fourth year.He has a _____.

Which of the following are tax deductible if one itemizes deductions?

The seller of the house typically pays the ____________.

If the interest rates and monthly mortgage payments do not change over the life of your mortgage,you have _____.

The property listing in a local multiple listing service (MLS)cannot be accessed by all buyers and sellers.

The majority of each monthly payment at the beginning of the loan goes to pay the:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 5: Making Automobile and Housing Decisions

With prequalification,a buyer can ____________. ​

A buydown refers to:

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

When shopping for a lease,you want:

At the end of your car lease period,you intend to turn in the car,and you will not pay extra at that time based on the residual value of the car.You have _____ lease.

As home prices have fallen in recent years,the rent ratio:

The Federal Housing Administration _____ to high loan-to-value ratio mortgages.

The real estate agent's commission is generally paid by ____________. ​

Which of the following will help a buyer know ahead of time the specific mortgage amount that he or she will be eligible for subject to changes in rates and term?

A real estate sales contract will include:

A lender will usually require a loan-to-value ratio of _____ or less for a borrower to avoid having to pay private mortgage insurance (PMI).

The job of a mortgage banker is to locate conventional loans for clients.

You made a $900 mortgage payment.The interest of $925 on the mortgage for this month leads to an increase in the principal balance.You have ____________. ​

An escrow account is used to collect _____ from one's monthly mortgage payment.

Jacob has taken an SUV on lease from Free Cruisers Inc.for a period of four years.Jacob does not need to pay any extra amount,based on the residual value of the car,at the end of the fourth year.He has a _____.

Which of the following are tax deductible if one itemizes deductions?

The seller of the house typically pays the ____________. ​

If the interest rates and monthly mortgage payments do not change over the life of your mortgage,you have _____.

The property listing in a local multiple listing service (MLS)cannot be accessed by all buyers and sellers.

The majority of each monthly payment at the beginning of the loan goes to pay the:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

With prequalification,a buyer can ____________.

The real estate agent's commission is generally paid by ____________.

You made a $900 mortgage payment.The interest of $925 on the mortgage for this month leads to an increase in the principal balance.You have ____________.

The seller of the house typically pays the ____________.