Question 1

Real estate brokers usually offer good advice,but since they have a vested interest in you buying from them,you should also factor in your own judgment.

Accepted Answer

A) True 
 B)False

Question 2

In the decision to rent or purchase a home the ________ of any security deposit that you would put down on a rental home must be part of the decision.

Accepted Answer

The answer of In the decision to rent or purchase...

Question 3

Which of the following is not true?

Accepted Answer

A) A conventional mortgage requires a 10-20 percent down payment 
B) With government-backed loans,the government insures the loan in the event of default 
C) Veterans Administration mortgages are extended to most first-time homebuyers 
D) Government-backed mortgages may require lower down payments than conventional mortgages 
A) A conventional mortgage requires a 10-20 percent down payment 
B) With government-backed loans,the government insures the loan in the event of default 
C) Veterans Administration mortgages are extended to most first-time homebuyers 
D) Government-backed mortgages may require lower down payments than conventional mortgages

Question 4

List four key components of closing costs.

Accepted Answer

Any combination of the followi

Question 5

Online realtor services are more convenient,but usually charge higher commissions than traditional full-service real estate companies.

Accepted Answer

A) True 
 B)False

Question 6

Chuck obtained a mortgage of $90,000 to finance a $120,000 home.The title search will be $400,appraisal fee $500,application fee $900,and he will pay one percent origination fee.How much are his closing costs?
(a)$900
(b)$1,800
(c)$2,700
(d)$3,000

Accepted Answer

The answer of Chuck obtained a mortgage of $90,000 to...

Question 7

Refinancing a home requires you to pay many of the same costs as the original loan and should therefore be thoroughly investigated.

Accepted Answer

A) True 
 B)False

Question 8

Disclosing defects when selling a home is not

Accepted Answer

A) the legal thing to do in most states. 
B) the moral thing to do. 
C) optional if the defect is only a minor one. 
D) the smart thing to do to avoid lawsuits. 
A) the legal thing to do in most states. 
B) the moral thing to do. 
C) optional if the defect is only a minor one. 
D) the smart thing to do to avoid lawsuits.

Question 9

Adjustable-rate mortgages are riskier than fixed-rate mortgages.However,they may be useful when the interest rate is expected to ________ in the future.

Accepted Answer

A) increase 
B) decrease 
C) remain stable 
D) None of the above. 
A) increase 
B) decrease 
C) remain stable 
D) None of the above.

Question 10

Purchasing a condominium is an alternative to purchasing a home but also requires good decision-making skills.

Accepted Answer

A) True 
 B)False

Question 11

The type of home which probably would require the lowest maintenance is a (an)

Accepted Answer

A) large home. 
B) older home. 
C) home built by a well-known construction company. 
D) home with a large yard. 
A) large home. 
B) older home. 
C) home built by a well-known construction company. 
D) home with a large yard.

Question 12

Which of the following is true about condominiums?

Accepted Answer

A) Each person owns a portion of the land on which a condominium is located 
B) Maintenance fees of common areas are shared 
C) They have more privacy than single family homes 
D) All of the above 
A) Each person owns a portion of the land on which a condominium is located 
B) Maintenance fees of common areas are shared 
C) They have more privacy than single family homes 
D) All of the above

Question 13

A sales contract stipulates not only the price offered for a home,but also the repairs to be completed and the move-in date requested by the buyer.

Accepted Answer

A) True 
 B)False

Question 14

For a $72,000 mortgage at 9 percent,the monthly payments would be $730 for a 15-year mortgage and $579 for a 30-year mortgage.What would be the total savings in interest by using a 15-year mortgage?
(a)$27,180
(b)$54,360
(c)$77,040
(d)$131,400

Accepted Answer

The answer of For a $72,000 mortgage at 9 percent,the...

Question 15

An amortization schedule shows all but the

Accepted Answer

A) principal portion of the payment. 
B) interest portion of the payment. 
C) increase in market value. 
D) beginning and ending balances. 
A) principal portion of the payment. 
B) interest portion of the payment. 
C) increase in market value. 
D) beginning and ending balances.

Question 16

Which of the following is true?

Accepted Answer

A) Loan origination fees are around 10-20 percent 
B) Loan application fees range from $100 to $500 
C) Points are $100-$200 per $1,000 of the home's value 
D) Appraisal costs range between 15-20 percent of the value of the house 
A) Loan origination fees are around 10-20 percent 
B) Loan application fees range from $100 to $500 
C) Points are $100-$200 per $1,000 of the home's value 
D) Appraisal costs range between 15-20 percent of the value of the house

Question 17

The selection of a home's school system is only applicable if you have or are likely to have school-aged children.

Accepted Answer

A) True 
 B)False

Question 18

A point is a flat fee of $500 for each multiple of $100,000 that you finance on a new home.

Accepted Answer

A) True 
 B)False

Question 19

When purchasing a home,which of the following costs will you not incur?

Accepted Answer

A) Origination fee 
B) Realtor's commission 
C) Application fee 
D) Appraisal fee 
A) Origination fee 
B) Realtor's commission 
C) Application fee 
D) Appraisal fee

Question 20

Of the following criteria for selecting a home,which would usually diminish the most in importance as the age of the buyers exceed 50?

Accepted Answer

A) Price 
B) Convenient location 
C) School system 
D) Taxes 
A) Price 
B) Convenient location 
C) School system 
D) Taxes

Exam 10: Purchasing and Financing a Home

Real estate brokers usually offer good advice,but since they have a vested interest in you buying from them,you should also factor in your own judgment.

In the decision to rent or purchase a home the ________ of any security deposit that you would put down on a rental home must be part of the decision.

Which of the following is not true?

List four key components of closing costs.

Online realtor services are more convenient,but usually charge higher commissions than traditional full-service real estate companies.

Chuck obtained a mortgage of $90,000 to finance a $120,000 home.The title search will be $400,appraisal fee $500,application fee $900,and he will pay one percent origination fee.How much are his closing costs? (a)$900 (b)$1,800 (c)$2,700 (d)$3,000

Refinancing a home requires you to pay many of the same costs as the original loan and should therefore be thoroughly investigated.

Disclosing defects when selling a home is not

Adjustable-rate mortgages are riskier than fixed-rate mortgages.However,they may be useful when the interest rate is expected to ________ in the future.

Purchasing a condominium is an alternative to purchasing a home but also requires good decision-making skills.

The type of home which probably would require the lowest maintenance is a (an)

Which of the following is true about condominiums?

A sales contract stipulates not only the price offered for a home,but also the repairs to be completed and the move-in date requested by the buyer.

For a $72,000 mortgage at 9 percent,the monthly payments would be $730 for a 15-year mortgage and $579 for a 30-year mortgage.What would be the total savings in interest by using a 15-year mortgage? (a)$27,180 (b)$54,360 (c)$77,040 (d)$131,400

An amortization schedule shows all but the

Which of the following is true?

The selection of a home's school system is only applicable if you have or are likely to have school-aged children.

A point is a flat fee of $500 for each multiple of $100,000 that you finance on a new home.

When purchasing a home,which of the following costs will you not incur?

Of the following criteria for selecting a home,which would usually diminish the most in importance as the age of the buyers exceed 50?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters