Question 1

Property taxes are based on the assessed value.Who determines this value and what can you do if you disagree with this assessment?

Accepted Answer

The assessed value is the amount that your local government determines your property to be worth for tax purposes.If you disagree with this assessment,you can take the following actions:
1.Know the appeal deadline.Contact the local assessor's office.
2.Check for mistakes,such as reporting incorrect square footage or incorrectly stating the number of bedrooms.
3.Determine the issues to emphasize.Note items that might affect the value of your home versus comparable homes in your area.
4.Prepare for the hearing.Gather evidence and prepare an organized presentation with photos and spreadsheets.

Question 2

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. B

Question 3

A home equity loan may also be 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 D

Question 4

Gary Smith is purchasing one housing unit in a building with several units.What type of housing is Gary most likely going to live in?

Accepted Answer

A) Condominium 
B) Duplex 
C) Cooperative 
D) Prefabricated home 
E) Mobile home 
A) Condominium 
B) Duplex 
C) Cooperative 
D) Prefabricated home 
E) Mobile home

Question 5

During which phase of the home-buying process would you assess types of housing available?

Accepted Answer

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

Question 6

A home worth $300,000 with $180,000 still owed on the mortgage would have equity of:

Accepted Answer

A) $300,000 
B) $180,000 
C) $120,000 
D) $100,000 
E) $80,000 
A) $300,000 
B) $180,000 
C) $120,000 
D) $100,000 
E) $80,000

Question 7

Explain what amortization is and how a down payment and loan duration impact it.

Accepted Answer

Amortization is the reduction of a loan

Question 8

Which of the following is an example of a closing cost?

Accepted Answer

A) Home inspection fees 
B) Moving expenses 
C) Earnest money 
D) Title insurance 
E) Down payment 
A) Home inspection fees 
B) Moving expenses 
C) Earnest money 
D) Title insurance 
E) Down payment

Question 9

The appraised value of your home is the:

Accepted Answer

A) value used to calculate property taxes. 
B) estimated current value of the property. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost remaining after the down payment. 
A) value used to calculate property taxes. 
B) estimated current value of the property. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost remaining after the down payment.

Question 10

Duane Miller wants to know what price home he can afford.His annual gross income is $60,000.He has no other debt expenses and expects property taxes and insurance to cost $400 per month.He knows he can get a 6%,15 year mortgage so his mortgage payment factor is 8.43.He expects to make a 10% down payment.What is Duane's affordable home purchase price? Round your answer to the nearest $100.

Accepted Answer

A) $148,300 
B) $177,900 
C) $164,800 
D) $197,700 
E) $1,483,000 
A) $148,300 
B) $177,900 
C) $164,800 
D) $197,700 
E) $1,483,000

Question 11

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

Accepted Answer

When selling a home,you should first pre

Question 12

Home improvements may or may not increase the selling price of the home.

Accepted Answer

A) True 
 B)False

Question 13

What is the most popular form of housing?

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Todd Foley is applying for a $100,000 mortgage.He can select either a $600 monthly payment with no points or a $ 520 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

Accepted Answer

A) 6 
B) 10 
C) 18 
D) 25 
E) 48 
A) 6 
B) 10 
C) 18 
D) 25 
E) 48

Question 16

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

Accepted Answer

A) Low security deposit 
B) Tax deductibility of the down payment 
C) Lifestyle flexibility 
D) Increases in property value 
E) No maintenance cost 
A) Low security deposit 
B) Tax deductibility of the down payment 
C) Lifestyle flexibility 
D) Increases in property value 
E) No maintenance cost

Question 17

A real estate short sale occurs when:

Accepted Answer

A) you are selling the home without a real estate professional. 
B) an appraisal is too costly to obtain. 
C) an estimate of the current value of the property is not available. 
D) the new selling price is less than the amount owed on a previous mortgage. 
E) the home is sold for less than the list price. 
A) you are selling the home without a real estate professional. 
B) an appraisal is too costly to obtain. 
C) an estimate of the current value of the property is not available. 
D) the new selling price is less than the amount owed on a previous mortgage. 
E) the home is sold for less than the list price.

Question 18

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

Accepted Answer

A) buy-down. 
B) discount point. 
C) float. 
D) rate cap. 
E) payment cap. 
A) buy-down. 
B) discount point. 
C) float. 
D) rate cap. 
E) payment cap.

Question 19

A major expense associated with home ownership would be:

Accepted Answer

A) renter's insurance. 
B) the security deposit. 
C) increased value of the property. 
D) real estate taxes. 
E) interest lost on the security deposit. 
A) renter's insurance. 
B) the security deposit. 
C) increased value of the property. 
D) real estate taxes. 
E) interest lost on the security deposit.

Question 20

Which one of the following is an advantage of buying?

Accepted Answer

A) Ease of Mobility 
B) Financial benefits 
C) Fewer responsibilities 
D) Minimal financial commitment 
E) Declining equity 
A) Ease of Mobility 
B) Financial benefits 
C) Fewer responsibilities 
D) Minimal financial commitment 
E) Declining equity

Property taxes are based on the assessed value.Who determines this value and what can you do if you disagree with this assessment?

Refinancing of a mortgage is recommended when:

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

Gary Smith is purchasing one housing unit in a building with several units.What type of housing is Gary most likely going to live in?

During which phase of the home-buying process would you assess types of housing available?

A home worth $300,000 with $180,000 still owed on the mortgage would have equity of:

Explain what amortization is and how a down payment and loan duration impact it.

Which of the following is an example of a closing cost?

The appraised value of your home is the:

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

Home improvements may or may not increase the selling price of the home.

What is the most popular form of housing?

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

Todd Foley is applying for a $100,000 mortgage.He can select either a $600 monthly payment with no points or a $ 520 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

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

A real estate short sale occurs when:

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

A major expense associated with home ownership would be:

Which one of the following is an advantage of buying?

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 Stock

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

Property taxes are based on the assessed value.Who determines this value and what can you do if you disagree with this assessment?

Refinancing of a mortgage is recommended when:

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

Gary Smith is purchasing one housing unit in a building with several units.What type of housing is Gary most likely going to live in?

During which phase of the home-buying process would you assess types of housing available?

A home worth $300,000 with $180,000 still owed on the mortgage would have equity of:

Explain what amortization is and how a down payment and loan duration impact it.

Which of the following is an example of a closing cost?

The appraised value of your home is the:

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

Home improvements may or may not increase the selling price of the home.

What is the most popular form of housing?

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

Todd Foley is applying for a $100,000 mortgage.He can select either a $600 monthly payment with no points or a $ 520 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

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

A real estate short sale occurs when:

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

A major expense associated with home ownership would be:

Which one of the following is an advantage of buying?

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters