Question 1

Private mortgage insurance is usually required if the down payment for a home is less than 30%.

Accepted Answer

A) True 
 B)False

Question 2

Quinn applied for a loan.He provided information about his finances and the home he plans to purchase.Results of the mortgage calculation included all of the following except

Accepted Answer

A)  Expected maintenance costs. 
B)  The home purchase price he can afford. 
C)  The monthly mortgage payment he can afford. 
D)  The mortgage amount he can afford. 
E)  All of these are correct. 
A)  Expected maintenance costs. 
B)  The home purchase price he can afford. 
C)  The monthly mortgage payment he can afford. 
D)  The mortgage amount he can afford. 
E)  All of these are correct.

Question 3

If you have a $150,000 30-year 5% mortgage,how much of your first monthly payment of $805.50 would go toward principal?

Accepted Answer

A)  $180.50 
B)  $625.00 
C)  $665.28 
D)  $805.50 
E)  $7,500.00 
A)  $180.50 
B)  $625.00 
C)  $665.28 
D)  $805.50 
E)  $7,500.00

Question 4

Elaine purchased her living unit in a building with five other separate units.She purchased a

Accepted Answer

A)  Condominium. 
B)  Duplex. 
C)  Manufactured home. 
D)  Single-family dwelling. 
E)  Townhouse. 
A)  Condominium. 
B)  Duplex. 
C)  Manufactured home. 
D)  Single-family dwelling. 
E)  Townhouse.

Question 5

The owner/landlord is known as the

Accepted Answer

A)  Lease. 
B)  Lessee. 
C)  Lessor. 
D)  Renter. 
E)  Sublease. 
A)  Lease. 
B)  Lessee. 
C)  Lessor. 
D)  Renter. 
E)  Sublease.

Question 6

The primary benefit of a home equity loan is

Accepted Answer

A)  Its limited availability. 
B)  The deductibility of the loan interest on federal taxes. 
C)  The required monthly payments. 
D)  The use of the home as collateral for the loan. 
E)  None of these is a primary benefit. 
A)  Its limited availability. 
B)  The deductibility of the loan interest on federal taxes. 
C)  The required monthly payments. 
D)  The use of the home as collateral for the loan. 
E)  None of these is a primary benefit.

Question 7

Which of the following is NOT a benefit of home ownership?

Accepted Answer

A)  Stability of residence 
B)  Personalized living location 
C)  Deductibility of mortgage interest 
D)  Deductibility of real estate taxes 
E)  Maintenance and costs of repairs and home improvements 
A)  Stability of residence 
B)  Personalized living location 
C)  Deductibility of mortgage interest 
D)  Deductibility of real estate taxes 
E)  Maintenance and costs of repairs and home improvements

Question 8

When Nancy buys her house,the mortgage company will probably conduct a(n)

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 9

Because Dan served in the army,he should be eligible for 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

Crystal is looking for a new apartment.What are her total annual costs associated with renting?

Accepted Answer

A)  $1,270 
B)  $12,000 
C)  $12,250 
D)  $12,270 
E)  $162,270 
A)  $1,270 
B)  $12,000 
C)  $12,250 
D)  $12,270 
E)  $162,270

Question 11

Trenton wants to buy a house but can provide only a 10% down payment.He probably will be required to have

Accepted Answer

A)  Amortization. 
B)  Escrow. 
C)  Lock. 
D)  PMI. 
E)  Points. 
A)  Amortization. 
B)  Escrow. 
C)  Lock. 
D)  PMI. 
E)  Points.

Question 12

Given the information here,what is the total cost of renting per year?

Accepted Answer

A)  $14,400 
B)  $14,700 
C)  $14,710 
D)  $164,400 
E)  $164,700 
A)  $14,400 
B)  $14,700 
C)  $14,710 
D)  $164,400 
E)  $164,700

Question 13

What are five things you can do to make the presentation of your home more favorable to buyers?

Accepted Answer

The effective presentation of your home

Question 14

Frank and Diane want to buy a house.Which of the following do they need before they purchase a house?

Accepted Answer

A)  Down payment. 
B)  Home owner's insurance. 
C)  Mortgage interest. 
D)  Mortgage principal. 
E)  Real estate taxes. 
A)  Down payment. 
B)  Home owner's insurance. 
C)  Mortgage interest. 
D)  Mortgage principal. 
E)  Real estate taxes.

Question 15

A balloon mortgage has fixed monthly payments for a period of time.At the end of that time,the entire principal balance must be paid in full.

Accepted Answer

A) True 
 B)False

Question 16

When Ingrid was selling her house,she contacted Gabe,her real estate agent,to help her with the sale.Gabe's services included all of the following except

Accepted Answer

A)  Negotiating a settlement price. 
B)  Receiving an offer from a buyer. 
C)  Representing Ingrid at the closing. 
D)  Showing Ingrid's home to potential buyers. 
E)  Home appraisal. 
A)  Negotiating a settlement price. 
B)  Receiving an offer from a buyer. 
C)  Representing Ingrid at the closing. 
D)  Showing Ingrid's home to potential buyers. 
E)  Home appraisal.

Question 17

Donald wanted to buy a house in the country,so he sought advice from his cousin Evan.Evan explained the advantages and disadvantages of home ownership; however,he had some information incorrect.Which of the following is incorrect?

Accepted Answer

A)  An advantage is that Donald can deduct mortgage interest and real estate taxes. 
B)  A disadvantage is that Donald is responsible for maintenance and costs of repairs and home improvements. 
C)  An advantage is that the down payment required is less than the security deposit for a rental. 
D)  A disadvantage is that real estate taxes are a major expense for home owners. 
E)  An advantage is that Donald can paint his house bright purple with green trim to match his college's colors. 
A)  An advantage is that Donald can deduct mortgage interest and real estate taxes. 
B)  A disadvantage is that Donald is responsible for maintenance and costs of repairs and home improvements. 
C)  An advantage is that the down payment required is less than the security deposit for a rental. 
D)  A disadvantage is that real estate taxes are a major expense for home owners. 
E)  An advantage is that Donald can paint his house bright purple with green trim to match his college's colors.

Question 18

A landlord has the right to sublet an apartment.

Accepted Answer

A) True 
 B)False

Question 19

If you pay an extra $100 per month on your mortgage,your total loan principal will decrease and your total interest will remain the same.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT correct?

Accepted Answer

A)  Renting is usually less expensive in the short run. 
B)  Home ownership usually has long-term financial advantages. 
C)  Lifestyle and financial factors should be analyzed to determine if you should rent or buy. 
D)  Traditional financial guidelines suggest that your home should cost about five times your annual income. 
E)  Renting offers mobility. 
A)  Renting is usually less expensive in the short run. 
B)  Home ownership usually has long-term financial advantages. 
C)  Lifestyle and financial factors should be analyzed to determine if you should rent or buy. 
D)  Traditional financial guidelines suggest that your home should cost about five times your annual income. 
E)  Renting offers mobility.

Private mortgage insurance is usually required if the down payment for a home is less than 30%.

Quinn applied for a loan.He provided information about his finances and the home he plans to purchase.Results of the mortgage calculation included all of the following except

If you have a $150,000 30-year 5% mortgage,how much of your first monthly payment of $805.50 would go toward principal?

Elaine purchased her living unit in a building with five other separate units.She purchased a

The owner/landlord is known as the

The primary benefit of a home equity loan is

Which of the following is NOT a benefit of home ownership?

When Nancy buys her house,the mortgage company will probably conduct a(n)

Because Dan served in the army,he should be eligible for a(n)

Crystal is looking for a new apartment.What are her total annual costs associated with renting?

Trenton wants to buy a house but can provide only a 10% down payment.He probably will be required to have

Given the information here,what is the total cost of renting per year?

What are five things you can do to make the presentation of your home more favorable to buyers?

Frank and Diane want to buy a house.Which of the following do they need before they purchase a house?

A balloon mortgage has fixed monthly payments for a period of time.At the end of that time,the entire principal balance must be paid in full.

When Ingrid was selling her house,she contacted Gabe,her real estate agent,to help her with the sale.Gabe's services included all of the following except

Donald wanted to buy a house in the country,so he sought advice from his cousin Evan.Evan explained the advantages and disadvantages of home ownership; however,he had some information incorrect.Which of the following is incorrect?

A landlord has the right to sublet an apartment.

If you pay an extra $100 per month on your mortgage,your total loan principal will decrease and your total interest will remain the same.

Which of the following is NOT correct?

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

Private mortgage insurance is usually required if the down payment for a home is less than 30%.

Quinn applied for a loan.He provided information about his finances and the home he plans to purchase.Results of the mortgage calculation included all of the following except

If you have a $150,000 30-year 5% mortgage,how much of your first monthly payment of $805.50 would go toward principal?

Elaine purchased her living unit in a building with five other separate units.She purchased a

The owner/landlord is known as the

The primary benefit of a home equity loan is

Which of the following is NOT a benefit of home ownership?

When Nancy buys her house,the mortgage company will probably conduct a(n)

Because Dan served in the army,he should be eligible for a(n)

Crystal is looking for a new apartment.What are her total annual costs associated with renting?

Trenton wants to buy a house but can provide only a 10% down payment.He probably will be required to have

Given the information here,what is the total cost of renting per year?

What are five things you can do to make the presentation of your home more favorable to buyers?

Frank and Diane want to buy a house.Which of the following do they need before they purchase a house?

A balloon mortgage has fixed monthly payments for a period of time.At the end of that time,the entire principal balance must be paid in full.

When Ingrid was selling her house,she contacted Gabe,her real estate agent,to help her with the sale.Gabe's services included all of the following except

Donald wanted to buy a house in the country,so he sought advice from his cousin Evan.Evan explained the advantages and disadvantages of home ownership; however,he had some information incorrect.Which of the following is incorrect?

A landlord has the right to sublet an apartment.

If you pay an extra $100 per month on your mortgage,your total loan principal will decrease and your total interest will remain the same.

Which of the following is NOT correct?

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