Question 1

This provides the tenant protection from rent increases.

Accepted Answer

A)  Lease 
B)  Lessee 
C)  Lessor 
D)  Rental statement 
E)  Sublease 
A)  Lease 
B)  Lessee 
C)  Lessor 
D)  Rental statement 
E)  Sublease

Question 2

An approved mortgage application usually locks in an interest rate for 60-120 days.

Accepted Answer

A) True 
 B)False

Question 3

Paul is 23 years old and has a small amount to use as a down payment for his first house.He might 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 4

Lonnie wanted to sell his house but didn't know what price to ask.He should consider all of the following except

Accepted Answer

A)  Current mortgage rates. 
B)  Demand in the housing market. 
C)  His original cost. 
D)  Recent selling prices of comparable homes in the area. 
E)  The appraised value of his home. 
A)  Current mortgage rates. 
B)  Demand in the housing market. 
C)  His original cost. 
D)  Recent selling prices of comparable homes in the area. 
E)  The appraised value of his home.

Question 5

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

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 6

As interest rates increase,more people have the ability to afford an average-priced home.

Accepted Answer

A) True 
 B)False

Question 7

Contrast a fixed-rate mortgage with an adjustable-rate mortgage.

Accepted Answer

A fixed-rate mortgage is a conventional

Question 8

List five items that appear in a lease.

Accepted Answer

The following are correct:
• Description

Question 9

What is a home equity loan?
 What is its major advantage?

Accepted Answer

A home equity loan is a second mortgage

Question 10

Which of the following is the document that transfers ownership of property from one party to another?

Accepted Answer

A)  Deed 
B)  Escrow 
C)  Mortgage 
D)  PMI 
E)  Points 
A)  Deed 
B)  Escrow 
C)  Mortgage 
D)  PMI 
E)  Points

Question 11

Rental insurance isn't important since the landlord's insurance on the building includes coverage on all tenants' belongings.

Accepted Answer

A) True 
 B)False

Question 12

This gives the landlord the right to take legal action against a tenant for nonpayment of rent or destruction of property.

Accepted Answer

A)  Lease 
B)  Lessee 
C)  Lessor 
D)  Rental statement 
E)  Sublease 
A)  Lease 
B)  Lessee 
C)  Lessor 
D)  Rental statement 
E)  Sublease

Question 13

Which of the following is a form of housing in which the units are owned by a nonprofit organization?

Accepted Answer

A)  Condominium 
B)  Cooperative housing 
C)  Manufactured home 
D)  Single-family dwelling 
E)  Townhouse 
A)  Condominium 
B)  Cooperative housing 
C)  Manufactured home 
D)  Single-family dwelling 
E)  Townhouse

Question 14

If you have an interest rate subsidy from a home builder or real estate developer,you have a

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.

Question 15

Merrill bought a house and applied for a loan through the VA (Veterans Administration).The VA will provide the down payment when he closes on the house.

Accepted Answer

A) True 
 B)False

Question 16

What are two advantages of renting?

Accepted Answer

Advantages include these:
• Of

Question 17

The purpose of an escrow account is to pay the points at closing.

Accepted Answer

A) True 
 B)False

Question 18

What is the purpose of a walk-through?

Accepted Answer

A walk-through allows you to i

Question 19

When interest rates are high and the demand for homes is low,prices of homes will likely be at a premium.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a disadvantage of renting?

Accepted Answer

A)  Renters have fewer responsibilities than home owners. 
B)  Tenants cannot take tax deductions for mortgage interest and property taxes. 
C)  Renters usually do not have to be concerned with maintenance and repairs. 
D)  Taking possession of a rental unit is less expensive than buying a home. 
E)  Renting can be more convenient for those who move frequently. 
A)  Renters have fewer responsibilities than home owners. 
B)  Tenants cannot take tax deductions for mortgage interest and property taxes. 
C)  Renters usually do not have to be concerned with maintenance and repairs. 
D)  Taking possession of a rental unit is less expensive than buying a home. 
E)  Renting can be more convenient for those who move frequently.

This provides the tenant protection from rent increases.

An approved mortgage application usually locks in an interest rate for 60-120 days.

Paul is 23 years old and has a small amount to use as a down payment for his first house.He might be eligible for a(n)

Lonnie wanted to sell his house but didn't know what price to ask.He should consider 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 interest?

As interest rates increase,more people have the ability to afford an average-priced home.

Contrast a fixed-rate mortgage with an adjustable-rate mortgage.

List five items that appear in a lease.

What is a home equity loan? What is its major advantage?

Which of the following is the document that transfers ownership of property from one party to another?

Rental insurance isn't important since the landlord's insurance on the building includes coverage on all tenants' belongings.

This gives the landlord the right to take legal action against a tenant for nonpayment of rent or destruction of property.

Which of the following is a form of housing in which the units are owned by a nonprofit organization?

If you have an interest rate subsidy from a home builder or real estate developer,you have a

Merrill bought a house and applied for a loan through the VA (Veterans Administration).The VA will provide the down payment when he closes on the house.

What are two advantages of renting?

The purpose of an escrow account is to pay the points at closing.

What is the purpose of a walk-through?

When interest rates are high and the demand for homes is low,prices of homes will likely be at a premium.

Which of the following is a disadvantage of renting?

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

This provides the tenant protection from rent increases.

An approved mortgage application usually locks in an interest rate for 60-120 days.

Paul is 23 years old and has a small amount to use as a down payment for his first house.He might be eligible for a(n)

Lonnie wanted to sell his house but didn't know what price to ask.He should consider 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 interest?

As interest rates increase,more people have the ability to afford an average-priced home.

Contrast a fixed-rate mortgage with an adjustable-rate mortgage.

List five items that appear in a lease.

What is a home equity loan? What is its major advantage?

Which of the following is the document that transfers ownership of property from one party to another?

Rental insurance isn't important since the landlord's insurance on the building includes coverage on all tenants' belongings.

This gives the landlord the right to take legal action against a tenant for nonpayment of rent or destruction of property.

Which of the following is a form of housing in which the units are owned by a nonprofit organization?

If you have an interest rate subsidy from a home builder or real estate developer,you have a

Merrill bought a house and applied for a loan through the VA (Veterans Administration).The VA will provide the down payment when he closes on the house.

What are two advantages of renting?

The purpose of an escrow account is to pay the points at closing.

What is the purpose of a walk-through?

When interest rates are high and the demand for homes is low,prices of homes will likely be at a premium.

Which of the following is a disadvantage of renting?

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