Question 1

One point on a $80,000 loan for the purchase of a $110,000 home would equal

Accepted Answer

A) $100. 
B) $800. 
C) $1,000. 
D) $1,100. 
A) $100. 
B) $800. 
C) $1,000. 
D) $1,100.

Question 2

Annual property taxes for homes are usually

Accepted Answer

A) less than 0.5% of the home value. 
B) 0)5% to 1% of the home value. 
C) 1% to 2% of the home value. 
D) greater than 2% of the home value. 
A) less than 0.5% of the home value. 
B) 0)5% to 1% of the home value. 
C) 1% to 2% of the home value. 
D) greater than 2% of the home value.

Question 3

The schedule that discloses the monthly payment that you will make,based on a specific mortgage amount,a fixed interest rate level,and maturity is called a(n)

Accepted Answer

A) depreciation schedule. 
B) payment table. 
C) amortization table. 
D) obligation schedule. 
A) depreciation schedule. 
B) payment table. 
C) amortization table. 
D) obligation schedule.

Question 4

Condominiums have the advantages of sharing expenses among owners and giving the owners more privacy than single-family homes.

Accepted Answer

A) True 
 B)False

Question 5

Caps on adjustable-rate mortgages refer only to the maximum fluxuation in interest rates.

Accepted Answer

A) True 
 B)False

Question 6

Homeowner's association fees are not

Accepted Answer

A) often used for security guards. 
B) optional to homeowners in an area. 
C) used to maintain common grounds. 
D) often quite high and should be considered when buying a home. 
A) often used for security guards. 
B) optional to homeowners in an area. 
C) used to maintain common grounds. 
D) often quite high and should be considered when buying a home.

Question 7

When buying a home,the seller pays the realtor commission,so you pay no fee for realtor services except in the form of a higher purchase price.

Accepted Answer

A) True 
 B)False

Question 8

The monthly payment for a 15-year loan would be about ________ times as much as a comparable 30-year loan.

Accepted Answer

A) 0)5 
B) 1)25 
C) 2)0 
D) the same 
A) 0)5 
B) 1)25 
C) 2)0 
D) the same

Question 9

If the interest rate on your home mortgage will not change over the life of the loan you have a(n)________.

Accepted Answer

The answer of If the interest rate on your home...

Question 10

Renting is almost always a better financial option since owning a home has so many costs such as repair,insurance,and taxes.

Accepted Answer

A) True 
 B)False

Question 11

When choosing a home,a convenient location can save you considerable travel time and expenses.

Accepted Answer

A) True 
 B)False

Question 12

Since real estate brokers are licensed and bonded,they are required to give you unbiased information about real estate purchases.

Accepted Answer

A) True 
 B)False

Question 13

A good way to estimate the market value of a home is to multiply the number of square feet by the average price per square foot of similar homes in the area.

Accepted Answer

A) True 
 B)False

Question 14

Most realtors agree that location more than anything influences a home's future resale value.

Accepted Answer

A) True 
 B)False

Question 15

Homes near areas that have just been zoned for industrial use become more valuable.

Accepted Answer

A) True 
 B)False

Question 16

A 15-year mortgage compared to a 30-year mortgage has all of the following except

Accepted Answer

A) a lower appraisal fee. 
B) less interest over the life of the loan. 
C) higher payments. 
D) a faster build up of equity. 
A) a lower appraisal fee. 
B) less interest over the life of the loan. 
C) higher payments. 
D) a faster build up of equity.

Question 17

Your monthly payments for a house are likely to be as high as rent when you factor in mortgage payments,property taxes,homeowner's insurance,and home repairs.

Accepted Answer

A) True 
 B)False

Question 18

Is purchasing a home an expense,an investment,or both?

Accepted Answer

It is an expense since the interest expe

Question 19

It is a good idea not to disclose defects of the home you are trying to sell,since these will adversely affect your selling price or your ability to quickly sell your home.

Accepted Answer

A) True 
 B)False

Question 20

The purchase of a home represents a potential liability if you need to move quickly and the home does not appreciate rapidly in value.

Accepted Answer

A) True 
 B)False

Exam 10: Purchasing and Financing a Home

One point on a $80,000 loan for the purchase of a $110,000 home would equal

Annual property taxes for homes are usually

The schedule that discloses the monthly payment that you will make,based on a specific mortgage amount,a fixed interest rate level,and maturity is called a(n)

Condominiums have the advantages of sharing expenses among owners and giving the owners more privacy than single-family homes.

Caps on adjustable-rate mortgages refer only to the maximum fluxuation in interest rates.

Homeowner's association fees are not

When buying a home,the seller pays the realtor commission,so you pay no fee for realtor services except in the form of a higher purchase price.

The monthly payment for a 15-year loan would be about ________ times as much as a comparable 30-year loan.

If the interest rate on your home mortgage will not change over the life of the loan you have a(n)________.

Renting is almost always a better financial option since owning a home has so many costs such as repair,insurance,and taxes.

When choosing a home,a convenient location can save you considerable travel time and expenses.

Since real estate brokers are licensed and bonded,they are required to give you unbiased information about real estate purchases.

A good way to estimate the market value of a home is to multiply the number of square feet by the average price per square foot of similar homes in the area.

Most realtors agree that location more than anything influences a home's future resale value.

Homes near areas that have just been zoned for industrial use become more valuable.

A 15-year mortgage compared to a 30-year mortgage has all of the following except

Your monthly payments for a house are likely to be as high as rent when you factor in mortgage payments,property taxes,homeowner's insurance,and home repairs.

Is purchasing a home an expense,an investment,or both?

It is a good idea not to disclose defects of the home you are trying to sell,since these will adversely affect your selling price or your ability to quickly sell your home.

The purchase of a home represents a potential liability if you need to move quickly and the home does not appreciate rapidly in value.

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

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