Question 1

A deed is the document that transfers ownership of the property from one person to another.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would increase the amount that a person could afford to spend on a home?

Accepted Answer

A) increase in family income 
B) increase in interest rates 
C) decrease in down payment 
D) increase in other financial obligations 
E) increase in monthly living expenses 
A) increase in family income 
B) increase in interest rates 
C) decrease in down payment 
D) increase in other financial obligations 
E) increase in monthly living expenses

Question 3

Ease of mobility is an advantage of renting.

Accepted Answer

A) True 
 B)False

Question 4

Cooperative housing is a form of housing in which the units in a building are owned by a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 5

The legal document involved in renting an apartment is called a(n):

Accepted Answer

A) service contract. 
B) mortgage. 
C) lease. 
D) security deposit. 
E) escrow account. 
A) service contract. 
B) mortgage. 
C) lease. 
D) security deposit. 
E) escrow account.

Question 6

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 7

An FHA-insured mortgage has less risk than a conventional mortgage for the financial institution.

Accepted Answer

A) True 
 B)False

Question 8

What is the purpose of an escrow account and what costs are typically included?

Accepted Answer

The answer of What is the purpose of an escrow...

Question 9

Explain negative amortization and how such a situation can occur.

Accepted Answer

The answer of Explain negative amortization and how such a...

Question 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

A cooperative housing arrangement involves:

Accepted Answer

A) government-supported rental units. 
B) a nonprofit organization that rents units to its shareholders. 
C) individual ownership of a living unit in a building. 
D) factory built and on-site assembly. 
E) housing units owned by a real estate developer. 
A) government-supported rental units. 
B) a nonprofit organization that rents units to its shareholders. 
C) individual ownership of a living unit in a building. 
D) factory built and on-site assembly. 
E) housing units owned by a real estate developer.

Question 13

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 14

Current interest rates can affect the price of a home.

Accepted Answer

A) True 
 B)False

Question 15

If you sell your home without a real estate agent,you should still employ the services of a(n):

Accepted Answer

A) broker. 
B) insurance agent. 
C) lawyer. 
D) contractor. 
E) rental agent. 
A) broker. 
B) insurance agent. 
C) lawyer. 
D) contractor. 
E) rental agent.

Question 16

The purpose of a rate cap in an adjustable rate mortgage is to limit the amount by which the interest rate can vary.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of zoning laws is to:

Accepted Answer

A) restrict property use. 
B) encourage new housing development. 
C) minimize people moving from an area. 
D) reduce real estate property taxes. 
E) assist real estate agents in finding homes for salE. 
A) restrict property use. 
B) encourage new housing development. 
C) minimize people moving from an area. 
D) reduce real estate property taxes. 
E) assist real estate agents in finding homes for salE.

Question 18

Ted pays $4,500 in real estate property taxes and is in the 28 percent tax bracket.What is the value of this federal tax deduction?

Accepted Answer

A) $4,500. 
B) $3,240. 
C) $2,500. 
D) $1,260. 
E) $500. 
A) $4,500. 
B) $3,240. 
C) $2,500. 
D) $1,260. 
E) $500.

Question 19

Gary Smith is purchasing one living unit in a building.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 20

The purpose of an appraisal is to:

Accepted Answer

A) estimate the current value of a home. 
B) reduce the amount paid for property taxes. 
C) qualify for a reduced mortgage rate. 
D) eliminate the need for home insurance. 
E) reduce fees paid to realtor. 
A) estimate the current value of a home. 
B) reduce the amount paid for property taxes. 
C) qualify for a reduced mortgage rate. 
D) eliminate the need for home insurance. 
E) reduce fees paid to realtor.

A deed is the document that transfers ownership of the property from one person to another.

Which of the following would increase the amount that a person could afford to spend on a home?

Ease of mobility is an advantage of renting.

Cooperative housing is a form of housing in which the units in a building are owned by a nonprofit organization.

The legal document involved in renting an apartment is called a(n):

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

An FHA-insured mortgage has less risk than a conventional mortgage for the financial institution.

What is the purpose of an escrow account and what costs are typically included?

Explain negative amortization and how such a situation can occur.

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?

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

A cooperative housing arrangement involves:

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

Current interest rates can affect the price of a home.

If you sell your home without a real estate agent,you should still employ the services of a(n):

The purpose of a rate cap in an adjustable rate mortgage is to limit the amount by which the interest rate can vary.

The purpose of zoning laws is to:

Ted pays $4,500 in real estate property taxes and is in the 28 percent tax bracket.What is the value of this federal tax deduction?

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

The purpose of an appraisal is 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

Exam 9: The Housing Decision: Factors and Finances

A deed is the document that transfers ownership of the property from one person to another.

Which of the following would increase the amount that a person could afford to spend on a home?

Ease of mobility is an advantage of renting.

Cooperative housing is a form of housing in which the units in a building are owned by a nonprofit organization.

The legal document involved in renting an apartment is called a(n):

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

An FHA-insured mortgage has less risk than a conventional mortgage for the financial institution.

What is the purpose of an escrow account and what costs are typically included?

Explain negative amortization and how such a situation can occur.

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?

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

A cooperative housing arrangement involves:

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

Current interest rates can affect the price of a home.

If you sell your home without a real estate agent,you should still employ the services of a(n):

The purpose of a rate cap in an adjustable rate mortgage is to limit the amount by which the interest rate can vary.

The purpose of zoning laws is to:

Ted pays $4,500 in real estate property taxes and is in the 28 percent tax bracket.What is the value of this federal tax deduction?

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

The purpose of an appraisal is 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