Question 1

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 A

Question 2

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. C

Question 3

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. E

Question 4

When Sam applied for a loan, he was assured that his rate would not change if he closed within 30 to 90 days. Sam had a(n) ______ on the interest rate.

Accepted Answer

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

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

Georgina and Henry have a family and are looking at houses. Which of the following is correct?

Accepted Answer

A)  A "handyman's special" will be set at a higher price than one that is in good condition. 
B)  They should assess the school system in the area they want to live. 
C)  The amount they can afford for housing will be primarily determined by the down payment. 
D)  Their first home should contain all the features desired. 
E)  They should complete all repair work themselves to increase costs.. 
A)  A "handyman's special" will be set at a higher price than one that is in good condition. 
B)  They should assess the school system in the area they want to live. 
C)  The amount they can afford for housing will be primarily determined by the down payment. 
D)  Their first home should contain all the features desired. 
E)  They should complete all repair work themselves to increase costs..

Question 7

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

Question 8

Which of the following is NOT correct?

Accepted Answer

A)  Renting is usually less costly 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 costly 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.

Question 9

An advantage of renting is pride of ownership.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  Payment cap. 
B)  Buy-down. 
C)  ARM. 
D)  Rate cap. 
E)  Interest-only mortgage. 
A)  Payment cap. 
B)  Buy-down. 
C)  ARM. 
D)  Rate cap. 
E)  Interest-only mortgage.

Question 11

Opal is a real estate agent who represents the buyer as well as the seller. In some states, the buyers are required to sign a disclosure acknowledging that they are aware that Opal is working as 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 12

Home improvements will definitely increase the selling price of a house.

Accepted Answer

A) True 
 B)False

Question 13

Lease-to-purchase and rent-with-option allow homeowners to become renters.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Renter's insurance protects the tenant by covering damage or theft to clothing, furniture, and stereo equipment.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Paul and Lora built their home. When they researched contractors, they considered all of the following except

Accepted Answer

A)  Contractor's reputation and experience. 
B)  Contractor's relationship with suppliers and carpenters. 
C)  Payment arrangements during construction. 
D)  Time and payment schedules. 
E)  Contractor's property tax payments during construction. 
A)  Contractor's reputation and experience. 
B)  Contractor's relationship with suppliers and carpenters. 
C)  Payment arrangements during construction. 
D)  Time and payment schedules. 
E)  Contractor's property tax payments during construction.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT correct regarding real estate agents?

Accepted Answer

A)  They can provide advice on features of your home to highlight. 
B)  They can suggest a selling price. 
C)  They will make other agents aware of your home. 
D)  They may screen potential buyers to determine if they will qualify for a mortgage for your home. 
E)  They require that you conduct your own showings. 
A)  They can provide advice on features of your home to highlight. 
B)  They can suggest a selling price. 
C)  They will make other agents aware of your home. 
D)  They may screen potential buyers to determine if they will qualify for a mortgage for your home. 
E)  They require that you conduct your own showings.

Question 20

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

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

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

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

When Sam applied for a loan, he was assured that his rate would not change if he closed within 30 to 90 days. Sam had a(n) ______ on the interest rate.

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

Georgina and Henry have a family and are looking at houses. Which of the following is correct?

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.

Which of the following is NOT correct?

An advantage of renting is pride of ownership.

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

Opal is a real estate agent who represents the buyer as well as the seller. In some states, the buyers are required to sign a disclosure acknowledging that they are aware that Opal is working as a(n)

Home improvements will definitely increase the selling price of a house.

Lease-to-purchase and rent-with-option allow homeowners to become renters.

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.

Renter's insurance protects the tenant by covering damage or theft to clothing, furniture, and stereo equipment.

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

Paul and Lora built their home. When they researched contractors, they considered all of the following except

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

Which of the following is NOT correct regarding real estate agents?

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?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 7: Selecting and Financing Housing

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

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

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

When Sam applied for a loan, he was assured that his rate would not change if he closed within 30 to 90 days. Sam had a(n) ______ on the interest rate.

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

Georgina and Henry have a family and are looking at houses. Which of the following is correct?

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.

Which of the following is NOT correct?

An advantage of renting is pride of ownership.

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

Opal is a real estate agent who represents the buyer as well as the seller. In some states, the buyers are required to sign a disclosure acknowledging that they are aware that Opal is working as a(n)

Home improvements will definitely increase the selling price of a house.

Lease-to-purchase and rent-with-option allow homeowners to become renters.

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.

Renter's insurance protects the tenant by covering damage or theft to clothing, furniture, and stereo equipment.

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

Paul and Lora built their home. When they researched contractors, they considered all of the following except

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

Which of the following is NOT correct regarding real estate agents?

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?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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