Question 1

Ursula wants to have an interest rate that can increase or decrease during the life of her loan. She should look for a(n)

Accepted Answer

A)  ARM. 
B)  FHA loan. 
C)  Negative amortization. 
D)  Second mortgage 
E)  VA loan. 
A)  ARM. 
B)  FHA loan. 
C)  Negative amortization. 
D)  Second mortgage 
E)  VA loan.

Question 2

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)  Renter's insurance. 
C)  Mortgage interest. 
D)  Mortgage principal. 
E)  Handyman 
A)  Down payment. 
B)  Renter's insurance. 
C)  Mortgage interest. 
D)  Mortgage principal. 
E)  Handyman

Question 3

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

Question 4

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 5

Lenny the landlord has the right to take legal action against Tina the tenant for nonpayment of rent or destruction of property.

Accepted Answer

A) True 
 B)False

Question 6

Crystal is looking for a new apartment. What are her total annual costs associated with renting? $\begin{array}{c}
\begin{array}{l}
\text{* Annual rent payments}\
\text{* Annual renter's insurance}\
\text{* Annual interest lost on security deposit}\
\text{* Value of apartment}\
\end{array}
\begin{array}{r}
\$ 1,000 \
\$ 250 \
\$ 20 \
\$ 150,000\
\end{array}
\end{array}$

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 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

Given the information here, what is the annual cost of owning? $\begin{array}{c}
\begin{array}{l}
\text{* Home value}\
\text{* Annual mortgage payments}\
\text{* Annual property taxes}\
\text{* Annual homeowner's insurance}\
\text{* Estimated maintenance and repairs}\
\text{* Growth in equity}\
\text{* Tax savings (mortgage interest and property tax)}\
\text{* Estimate annual appreciation}\
\end{array}
\begin{array}{c}
\$ 300,000 \
\$ 19,200 \
\$ 4,800 \
\$ 1,200\
1 \% \text{of home value}\
\$ 3,000\
\$2,800\
1.5 \% \text { of home value }\
\end{array}
\end{array}$

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 9

Merrill bought a house and applied for a loan through the VA (Veterans Administration). The VA will provide the mortgage money .

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which of the following expenses is NOT usually incurred by a tenant?

Accepted Answer

A)  Security deposit. 
B)  Utilities (other than water). 
C)  Renter's insurance. 
D)  Property taxes. 
E)  None of these are incurred. 
A)  Security deposit. 
B)  Utilities (other than water). 
C)  Renter's insurance. 
D)  Property taxes. 
E)  None of these are incurred.

Question 12

As interest rates increase, more people are able to afford the cost of an average-priced home.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Which of the following is NOT correct?

Accepted Answer

A)  Alex's daily maintenance and timely repairs around his home should make it attractive to potential buyers. 
B)  Brenda's new hot tub will probably not increase the selling price. 
C)  When showing the home, Caryn's suggestion to open drapes but keep lights turned off to conserve energy will give her property a positive image. 
D)  Darryl's decision to sell his house "by owner" could save him several thousands of dollars in commission. 
E)  Eric's listing with a real estate agent will provide him with services such as advice on features of his home to highlight. 
A)  Alex's daily maintenance and timely repairs around his home should make it attractive to potential buyers. 
B)  Brenda's new hot tub will probably not increase the selling price. 
C)  When showing the home, Caryn's suggestion to open drapes but keep lights turned off to conserve energy will give her property a positive image. 
D)  Darryl's decision to sell his house "by owner" could save him several thousands of dollars in commission. 
E)  Eric's listing with a real estate agent will provide him with services such as advice on features of his home to highlight.

Question 15

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

Question 16

Your lifestyle affects your housing decision.

Accepted Answer

A) True 
 B)False

Question 17

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 remove excess furniture to make areas look larger. 
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 remove excess furniture to make areas look larger. 
E)  Underestimate the cost of utilities.

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an advantage of renting?

Accepted Answer

A)  Noise from parties may be monitored closely. 
B)  Renters have fewer responsibilities for maintenance than home owners. 
C)  Tenants cannot take tax deductions for mortgage interest and property taxes. 
D)  Tenants may be subject to restrictions regarding remodeling . 
E)  Tenants may have restrictions regarding pets. 
A)  Noise from parties may be monitored closely. 
B)  Renters have fewer responsibilities for maintenance than home owners. 
C)  Tenants cannot take tax deductions for mortgage interest and property taxes. 
D)  Tenants may be subject to restrictions regarding remodeling . 
E)  Tenants may have restrictions regarding pets.

Ursula wants to have an interest rate that can increase or decrease during the life of her loan. She should look for a(n)

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

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.

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

Lenny the landlord has the right to take legal action against Tina the tenant for nonpayment of rent or destruction of property.

Crystal is looking for a new apartment. What are her total annual costs associated with renting? * Annual rent payments * Annual renter's insurance * Annual interest lost on security deposit * Value of apartment \ 1,000 \ 250 \ 20 \ 150,000

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

Merrill bought a house and applied for a loan through the VA (Veterans Administration). The VA will provide the mortgage money .

The owner/landlord is known as the

Which of the following expenses is NOT usually incurred by a tenant?

As interest rates increase, more people are able to afford the cost of an average-priced home.

This provides the tenant protection from rent increases.

Which of the following is NOT correct?

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

Your lifestyle affects your housing decision.

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

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

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

Which of the following is an advantage of renting?

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

Ursula wants to have an interest rate that can increase or decrease during the life of her loan. She should look for a(n)

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

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.

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

Lenny the landlord has the right to take legal action against Tina the tenant for nonpayment of rent or destruction of property.

Crystal is looking for a new apartment. What are her total annual costs associated with renting? * Annual rent payments * Annual renter's insurance * Annual interest lost on security deposit * Value of apartment \ 1,000 \ 250 \ 20 \ 150,000

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

Merrill bought a house and applied for a loan through the VA (Veterans Administration). The VA will provide the mortgage money .

The owner/landlord is known as the

Which of the following expenses is NOT usually incurred by a tenant?

As interest rates increase, more people are able to afford the cost of an average-priced home.

This provides the tenant protection from rent increases.

Which of the following is NOT correct?

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

Your lifestyle affects your housing decision.

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

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

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

Which of the following is an advantage of renting?

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

Filters