Question 1

If you do not pay back any of the loan amount for a portion of the loan period,you have a(n)

Accepted Answer

A)  Balloon mortgage. 
B)  Buy-down. 
C)  Convertible ARM. 
D)  Growing-equity mortgage. 
E)  Interest-only mortgage. 
A)  Balloon mortgage. 
B)  Buy-down. 
C)  Convertible ARM. 
D)  Growing-equity mortgage. 
E)  Interest-only mortgage. E

Question 2

If you are selling your house by owner,you should still enlist the assistance of

Accepted Answer

A)  A real estate agent to help with the closing. 
B)  A lawyer or title company to assist with the contract, closing, and other legal matters. 
C)  Your brother-in-law to aid with legal issues of the sale. 
D)  Two of these are correct. 
E)  All of these are correct. 
A)  A real estate agent to help with the closing. 
B)  A lawyer or title company to assist with the contract, closing, and other legal matters. 
C)  Your brother-in-law to aid with legal issues of the sale. 
D)  Two of these are correct. 
E)  All of these are correct. B

Question 3

Why might someone choose to sell his house himself instead of using a real estate agent?

Accepted Answer

Selling a house by owner can save several thousands of dollars in commissions.

Question 4

An advantage of a second mortgage is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.

Accepted Answer

A) True 
 B)False

Question 5

The most common conventional mortgage is the 20-year ARM.

Accepted Answer

A) True 
 B)False

Question 6

Most low- and middle-income people will NOT qualify for a VA-guaranteed loan.

Accepted Answer

A) True 
 B)False

Question 7

The opportunity to have another person take over rent payments and live in the rental unit is called (a)

Accepted Answer

A)  Lease. 
B)  Lessee. 
C)  Lessor. 
D)  Rental agreement. 
E)  Subletting. 
A)  Lease. 
B)  Lessee. 
C)  Lessor. 
D)  Rental agreement. 
E)  Subletting.

Question 8

A handyman's special is a home that needs work and is priced lower than homes in better condition.

Accepted Answer

A) True 
 B)False

Question 9

Yvette has a flexible-rate mortgage that has a maximum monthly increase.This feature is called a(n)

Accepted Answer

A)  ARM. 
B)  FHA loan. 
C)  Negative amortization. 
D)  Payment cap. 
E)  VA loan. 
A)  ARM. 
B)  FHA loan. 
C)  Negative amortization. 
D)  Payment cap. 
E)  VA loan.

Question 10

Home buyers have many alternatives.List three types of housing available to home buyers.

Accepted Answer

The following answers are acce

Question 11

At the closing of a home purchase,the buyer conducts a walk-through of the property.

Accepted Answer

A) True 
 B)False

Question 12

When Smee applied for a loan,he was assured that his rate would not change if he closed within a specific time period.Smee had a(n)______ on the interest rate.

Accepted Answer

A)  amortization 
B)  escrow 
C)  lock 
D)  PMI 
E)  points 
A)  amortization 
B)  escrow 
C)  lock 
D)  PMI 
E)  points

Question 13

Veronica has had a variable-rate mortgage for several years.Unfortunately,the monthly payments have not covered her interest owed.As a result,her home equity is decreasing because of

Accepted Answer

A)  ARM. 
B)  FHA loan. 
C)  Negative amortization. 
D)  Payment cap. 
E)  VA loan. 
A)  ARM. 
B)  FHA loan. 
C)  Negative amortization. 
D)  Payment cap. 
E)  VA loan.

Question 14

Jordan earns an annual salary of $45,000.If a lender uses 33% of monthly gross income as a guideline for the maximum PITI (principal,interest,taxes,and insurance),what is the maximum mortgage that Jordan can apply for?

Accepted Answer

A)  $1,237.50 
B)  $1,485.00 
C)  $2,475.00 
D)  $3,750.00 
E)  $7,500.00 
A)  $1,237.50 
B)  $1,485.00 
C)  $2,475.00 
D)  $3,750.00 
E)  $7,500.00

Question 15

Most tenants sign a lease.Which of the following is part of a lease agreement?

Accepted Answer

A)  The amount of the down payment. 
B)  The conditions under which the landlord may enter the apartment. 
C)  The interest rate for a lease loan. 
D)  The name and address of the buyer. 
E)  The sale date. 
A)  The amount of the down payment. 
B)  The conditions under which the landlord may enter the apartment. 
C)  The interest rate for a lease loan. 
D)  The name and address of the buyer. 
E)  The sale date.

Question 16

Mortgage points are paid at the end of the mortgage.

Accepted Answer

A) True 
 B)False

Question 17

Real estate agents often say that the three most important factors to consider when buying a home are "location,location,and location." Why do you think they make this statement?

Accepted Answer

The location of the home can greatly aff

Question 18

Given the information here,what is the annual cost of owning?

Accepted Answer

A)  $17,900 
B)  $28,200 
C)  $38,500 
D)  $300,000 
E)  $338,500 
A)  $17,900 
B)  $28,200 
C)  $38,500 
D)  $300,000 
E)  $338,500

Question 19

Madeline wants to purchase a larger house.However,she has not yet sold her current home.She may want to include a(n)________ in her offer.

Accepted Answer

A)  appraisal 
B)  contingency clause 
C)  dual agent 
D)  earnest money 
E)  purchase agreement 
A)  appraisal 
B)  contingency clause 
C)  dual agent 
D)  earnest money 
E)  purchase agreement

Question 20

When Brett's apartment lease ends,he should receive his entire security deposit back even though the carpet has been damaged while he was living there.

Accepted Answer

A) True 
 B)False

If you do not pay back any of the loan amount for a portion of the loan period,you have a(n)

If you are selling your house by owner,you should still enlist the assistance of

Why might someone choose to sell his house himself instead of using a real estate agent?

An advantage of a second mortgage is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.

The most common conventional mortgage is the 20-year ARM.

Most low- and middle-income people will NOT qualify for a VA-guaranteed loan.

The opportunity to have another person take over rent payments and live in the rental unit is called (a)

A handyman's special is a home that needs work and is priced lower than homes in better condition.

Yvette has a flexible-rate mortgage that has a maximum monthly increase.This feature is called a(n)

Home buyers have many alternatives.List three types of housing available to home buyers.

At the closing of a home purchase,the buyer conducts a walk-through of the property.

When Smee applied for a loan,he was assured that his rate would not change if he closed within a specific time period.Smee had a(n)______ on the interest rate.

Veronica has had a variable-rate mortgage for several years.Unfortunately,the monthly payments have not covered her interest owed.As a result,her home equity is decreasing because of

Jordan earns an annual salary of $45,000.If a lender uses 33% of monthly gross income as a guideline for the maximum PITI (principal,interest,taxes,and insurance),what is the maximum mortgage that Jordan can apply for?

Most tenants sign a lease.Which of the following is part of a lease agreement?

Mortgage points are paid at the end of the mortgage.

Real estate agents often say that the three most important factors to consider when buying a home are "location,location,and location." Why do you think they make this statement?

Given the information here,what is the annual cost of owning?

Madeline wants to purchase a larger house.However,she has not yet sold her current home.She may want to include a(n)________ in her offer.

When Brett's apartment lease ends,he should receive his entire security deposit back even though the carpet has been damaged while he was living there.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 7: Selecting and Financing Housing

If you do not pay back any of the loan amount for a portion of the loan period,you have a(n)

If you are selling your house by owner,you should still enlist the assistance of

Why might someone choose to sell his house himself instead of using a real estate agent?

An advantage of a second mortgage is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.

The most common conventional mortgage is the 20-year ARM.

Most low- and middle-income people will NOT qualify for a VA-guaranteed loan.

The opportunity to have another person take over rent payments and live in the rental unit is called (a)

A handyman's special is a home that needs work and is priced lower than homes in better condition.

Yvette has a flexible-rate mortgage that has a maximum monthly increase.This feature is called a(n)

Home buyers have many alternatives.List three types of housing available to home buyers.

At the closing of a home purchase,the buyer conducts a walk-through of the property.

When Smee applied for a loan,he was assured that his rate would not change if he closed within a specific time period.Smee had a(n)______ on the interest rate.

Veronica has had a variable-rate mortgage for several years.Unfortunately,the monthly payments have not covered her interest owed.As a result,her home equity is decreasing because of

Jordan earns an annual salary of $45,000.If a lender uses 33% of monthly gross income as a guideline for the maximum PITI (principal,interest,taxes,and insurance),what is the maximum mortgage that Jordan can apply for?

Most tenants sign a lease.Which of the following is part of a lease agreement?

Mortgage points are paid at the end of the mortgage.

Real estate agents often say that the three most important factors to consider when buying a home are "location,location,and location." Why do you think they make this statement?

Given the information here,what is the annual cost of owning?

Madeline wants to purchase a larger house.However,she has not yet sold her current home.She may want to include a(n)________ in her offer.

When Brett's apartment lease ends,he should receive his entire security deposit back even though the carpet has been damaged while he was living there.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters