Question 1

A renter is required to pay a security deposit of $800,on which 4 percent interest will be paid.What amount would the person earn each year?

Accepted Answer

A) $100 
B) $64 
C) $32 
D) $16 
E) $4 
A) $100 
B) $64 
C) $32 
D) $16 
E) $4

Question 2

Paula has completed a mortgage application and provided evidence of employment,income,assets owned,and existing debt to the potential lending institution.Although Paula has not even begun the process of looking at possible homes to buy,she is eagerly awaiting news from the lender as to whether she has been approved for a mortgage.In what stage of the application process is she?

Accepted Answer

A) Appraisal 
B) Prequalification 
C) Assessment 
D) Amortization 
E) Home inspection 
A) Appraisal 
B) Prequalification 
C) Assessment 
D) Amortization 
E) Home inspection

Question 3

Which of the following would increase the equity in a home at a faster rate?

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

Private Mortgage Insurance 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 5

Which of the following can help you prepare your home for selling?

Accepted Answer

A) Moving furniture to the garage 
B) Painting worn exterior 
C) Closing the drapes when showing your home 
D) Trimming the grass around old vehicles in the yard 
E) Turning off the lights to conserve energy when showing your home 
A) Moving furniture to the garage 
B) Painting worn exterior 
C) Closing the drapes when showing your home 
D) Trimming the grass around old vehicles in the yard 
E) Turning off the lights to conserve energy when showing your home

Question 6

What should you consider to determine the price you offer for a home?

Accepted Answer

The main factors to consider in a home p

Question 7

The assessed value of your home is the:

Accepted Answer

A) value used to calculate property taxes. 
B) estimated current market value. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost basis assigned to your home by your insurance company. 
A) value used to calculate property taxes. 
B) estimated current market value. 
C) price you paid to purchase the home. 
D) amount of money a buyer has offered to purchase the home. 
E) cost basis assigned to your home by your insurance company.

Question 8

Prefabricated homes 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 units that are 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 units that are partially assembled in factories.

Question 9

Michelle Duncan wants to know what price home she can afford.Her annual gross income is $45,000.She owes $750 per month on other debts and expects her property taxes and homeowners insurance to cost $250 per month.She knows she can get a 7.5%,30 year mortgage so her mortgage payment factor is 6.99.She expects to make a 20% down payment.What is Michelle's affordable home purchase price? Round your answer to the nearest $100.

Accepted Answer

A) $76,000 
B) $60,800 
C) $304,000 
D) $42,500 
E) $254,800 
A) $76,000 
B) $60,800 
C) $304,000 
D) $42,500 
E) $254,800

Question 10

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 value increases 
D) Restricted lifestyle 
E) Home remodeling flexibility 
A) Tax deductions 
B) Lower initial costs 
C) Property value increases 
D) Restricted lifestyle 
E) Home remodeling flexibility

Question 11

Gerry Intel is considering buying a home.What actions would you recommend for her to take to accomplish this goal of buying a home?

Accepted Answer

The process of buying a home involves th

Question 12

Which of the following is most commonly used as a base index for setting rates for adjustable rate mortgages?

Accepted Answer

A) Federal Reserve Bank 
B) Karl's mortgage calculator 
C) Realtor.com 
D) London Interbank Offered Rate 
E) Bankrate.com 
A) Federal Reserve Bank 
B) Karl's mortgage calculator 
C) Realtor.com 
D) London Interbank Offered Rate 
E) Bankrate.com

Question 13

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 14

Renting would be most appropriate for people who:

Accepted Answer

A) want more tax deduction benefits. 
B) desire to do their own maintenance and repairs. 
C) have limited initial funds available. 
D) enjoy remodeling their residence. 
E) desire unmonitored parties. 
A) want more tax deduction benefits. 
B) desire to do their own maintenance and repairs. 
C) have limited initial funds available. 
D) enjoy remodeling their residence. 
E) desire unmonitored parties.

Question 15

Which of the following is not an advantage of renting?

Accepted Answer

A) Ease of mobility 
B) More financial benefits than home ownership 
C) Fewer responsibilities for maintenance and repairs 
D) Lower initial costs 
E) No expenses related to property taxes 
A) Ease of mobility 
B) More financial benefits than home ownership 
C) Fewer responsibilities for maintenance and repairs 
D) Lower initial costs 
E) No expenses related to property taxes

Question 16

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

Accepted Answer

In cooperative housing,the units in the

Question 17

The purpose of a security deposit is to:

Accepted Answer

A) pay for any damages that may occur during the lease period. 
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 any damages that may occur during the lease period. 
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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Explain negative amortization and how such a situation can occur.

Accepted Answer

When payment amounts do not rise but int

Question 20

Prepaid interest charged by a mortgage lender is called:

Accepted Answer

A) Escrow 
B) Points 
C) Origination fee 
D) Title fee 
E) Deed 
A) Escrow 
B) Points 
C) Origination fee 
D) Title fee 
E) Deed

A renter is required to pay a security deposit of $800,on which 4 percent interest will be paid.What amount would the person earn each year?

Which of the following would increase the equity in a home at a faster rate?

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

Which of the following can help you prepare your home for selling?

What should you consider to determine the price you offer for a home?

The assessed value of your home is the:

Prefabricated homes refers to:

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

Gerry Intel is considering buying a home.What actions would you recommend for her to take to accomplish this goal of buying a home?

Which of the following is most commonly used as a base index for setting rates for adjustable rate mortgages?

Earnest money is used:

Renting would be most appropriate for people who:

Which of the following is not an advantage of renting?

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

The purpose of a security deposit is to:

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

Explain negative amortization and how such a situation can occur.

Prepaid interest charged by a mortgage lender is called:

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

A renter is required to pay a security deposit of $800,on which 4 percent interest will be paid.What amount would the person earn each year?

Which of the following would increase the equity in a home at a faster rate?

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

Which of the following can help you prepare your home for selling?

What should you consider to determine the price you offer for a home?

The assessed value of your home is the:

Prefabricated homes refers to:

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

Gerry Intel is considering buying a home.What actions would you recommend for her to take to accomplish this goal of buying a home?

Which of the following is most commonly used as a base index for setting rates for adjustable rate mortgages?

Earnest money is used:

Renting would be most appropriate for people who:

Which of the following is not an advantage of renting?

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

The purpose of a security deposit is to:

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

Explain negative amortization and how such a situation can occur.

Prepaid interest charged by a mortgage lender is called:

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