Question 1

Kelly selected a home and submitted an offer to the seller.

Accepted Answer

A)  The seller must accept her offer. 
B)  Her offer must have been for the asking price. 
C)  The seller's price is affected by Kelly's need to buy. 
D)  The seller may choose to provide a counteroffer. 
E)  Kelly will receive earnest money when she presents the offer. 
A)  The seller must accept her offer. 
B)  Her offer must have been for the asking price. 
C)  The seller's price is affected by Kelly's need to buy. 
D)  The seller may choose to provide a counteroffer. 
E)  Kelly will receive earnest money when she presents the offer.

Question 2

A disadvantage of home ownership is the deductibility of mortgage interest and real estate tax payments.

Accepted Answer

A) True 
 B)False

Question 3

What are some steps you can take to improve your creditworthiness for a home loan?

Accepted Answer

Steps include paying down cred

Question 4

Which of the following expenses is NOT usually recommended or necessary for a tenant?

Accepted Answer

A)  Security deposit. 
B)  Utilities. 
C)  Renter's insurance. 
D)  All of these are recommended or necessary. 
E)  None of these is correct. 
A)  Security deposit. 
B)  Utilities. 
C)  Renter's insurance. 
D)  All of these are recommended or necessary. 
E)  None of these is correct.

Question 5

Brett bought a house five years ago for $150,000.At that time he borrowed $140,000 from his bank.The house is now worth $162,000.If he wants to stop paying his private mortgage insurance,he can request termination of PMI.The current value of his mortgage must be no higher than

Accepted Answer

A)  $122,000. 
B)  $126,360. 
C)  $140,000. 
D)  $150,000. 
E)  $162,000. 
A)  $122,000. 
B)  $126,360. 
C)  $140,000. 
D)  $150,000. 
E)  $162,000.

Question 6

During a home purchase closing,you should

Accepted Answer

A)  Order an appraisal. 
B)  Pay all closing costs, settle last-minute items, and sign documents. 
C)  Schedule an inspection of the condition of the home. 
D)  Sign documents and pay half of the settlement costs. 
E)  Review zoning laws for the municipality where the home is located. 
A)  Order an appraisal. 
B)  Pay all closing costs, settle last-minute items, and sign documents. 
C)  Schedule an inspection of the condition of the home. 
D)  Sign documents and pay half of the settlement costs. 
E)  Review zoning laws for the municipality where the home is located.

Question 7

A legal document that includes information about the due date of monthly rent is called a

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 8

A reverse mortgage

Accepted Answer

A)  Is the same thing as a second mortgage. 
B)  Offers a home buyer a home loan with a 30-year payment period. 
C)  Provides older home owners with tax-free income in the form of a loan that is repaid when the home is sold or the home owner dies. 
D)  Two of these are correct. 
E)  All of these are correct. 
A)  Is the same thing as a second mortgage. 
B)  Offers a home buyer a home loan with a 30-year payment period. 
C)  Provides older home owners with tax-free income in the form of a loan that is repaid when the home is sold or the home owner dies. 
D)  Two of these are correct. 
E)  All of these are correct.

Question 9

What is the purpose of a home inspection?

Accepted Answer

A home inspection can minimize future pr

Question 10

Walt has decided to sell the home he has lived in for 50 years.The house has two bedrooms on the first floor,a finished basement,and a finished attic with a low ceiling.To prepare his home for sale,he should

Accepted Answer

A)  Exaggerate the size of his yard. 
B)  Keep everything "as is." 
C)  List his house as a three-bedroom. 
D)  Take steps to make the house appear bright and large. 
E)  Underestimate the cost of utilities. 
A)  Exaggerate the size of his yard. 
B)  Keep everything "as is." 
C)  List his house as a three-bedroom. 
D)  Take steps to make the house appear bright and large. 
E)  Underestimate the cost of utilities.

Question 11

Lenny the landlord has the right to take legal action against Tina the tenant if she does not pay her rent on a timely basis.

Accepted Answer

A) True 
 B)False

Question 12

Pauline just submitted an offer on her dream home.To show that she is serious,she also included 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 13

An advantage of a buy-down 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 14

What are the financial benefits of home ownership?

Accepted Answer

Benefits include tax deduction

Question 15

Which of the following is an advantage of renting?

Accepted Answer

A)  Noise from parties may be monitored closely. 
B)  Renters have fewer responsibilities than home owners. 
C)  Tenants cannot take tax deductions for mortgage interest and property taxes. 
D)  Tenants may be subject to restrictions regarding decorating. 
E)  All of these are advantages of renting. 
A)  Noise from parties may be monitored closely. 
B)  Renters have fewer responsibilities than home owners. 
C)  Tenants cannot take tax deductions for mortgage interest and property taxes. 
D)  Tenants may be subject to restrictions regarding decorating. 
E)  All of these are advantages of renting.

Question 16

An advantage of renting is pride of ownership.

Accepted Answer

A) True 
 B)False

Question 17

Rebecca paid extra money to reduce her mortgage interest rate.That extra money is called

Accepted Answer

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

Question 18

Which of the following is a form of housing in which shareholders purchase stock to obtain the right to live in a unit of the building?

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 19

Contrast the advantages of renting and buying.

Accepted Answer

Renting is less costly in the short term

Question 20

Ricky has a conventional mortgage.He can monitor his interest and principal payments using _____ information.

Accepted Answer

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

Kelly selected a home and submitted an offer to the seller.

A disadvantage of home ownership is the deductibility of mortgage interest and real estate tax payments.

What are some steps you can take to improve your creditworthiness for a home loan?

Which of the following expenses is NOT usually recommended or necessary for a tenant?

Brett bought a house five years ago for $150,000.At that time he borrowed $140,000 from his bank.The house is now worth $162,000.If he wants to stop paying his private mortgage insurance,he can request termination of PMI.The current value of his mortgage must be no higher than

During a home purchase closing,you should

A legal document that includes information about the due date of monthly rent is called a

A reverse mortgage

What is the purpose of a home inspection?

Walt has decided to sell the home he has lived in for 50 years.The house has two bedrooms on the first floor,a finished basement,and a finished attic with a low ceiling.To prepare his home for sale,he should

Lenny the landlord has the right to take legal action against Tina the tenant if she does not pay her rent on a timely basis.

Pauline just submitted an offer on her dream home.To show that she is serious,she also included a(n)

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

What are the financial benefits of home ownership?

Which of the following is an advantage of renting?

An advantage of renting is pride of ownership.

Rebecca paid extra money to reduce her mortgage interest rate.That extra money is called

Which of the following is a form of housing in which shareholders purchase stock to obtain the right to live in a unit of the building?

Contrast the advantages of renting and buying.

Ricky has a conventional mortgage.He can monitor his interest and principal payments using _____ information.

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

Kelly selected a home and submitted an offer to the seller.

A disadvantage of home ownership is the deductibility of mortgage interest and real estate tax payments.

What are some steps you can take to improve your creditworthiness for a home loan?

Which of the following expenses is NOT usually recommended or necessary for a tenant?

Brett bought a house five years ago for $150,000.At that time he borrowed $140,000 from his bank.The house is now worth $162,000.If he wants to stop paying his private mortgage insurance,he can request termination of PMI.The current value of his mortgage must be no higher than

During a home purchase closing,you should

A legal document that includes information about the due date of monthly rent is called a

A reverse mortgage

What is the purpose of a home inspection?

Walt has decided to sell the home he has lived in for 50 years.The house has two bedrooms on the first floor,a finished basement,and a finished attic with a low ceiling.To prepare his home for sale,he should

Lenny the landlord has the right to take legal action against Tina the tenant if she does not pay her rent on a timely basis.

Pauline just submitted an offer on her dream home.To show that she is serious,she also included a(n)

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

What are the financial benefits of home ownership?

Which of the following is an advantage of renting?

An advantage of renting is pride of ownership.

Rebecca paid extra money to reduce her mortgage interest rate.That extra money is called

Which of the following is a form of housing in which shareholders purchase stock to obtain the right to live in a unit of the building?

Contrast the advantages of renting and buying.

Ricky has a conventional mortgage.He can monitor his interest and principal payments using _____ information.

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