Question 1

When buying a home,which of the factors below should be considered in the decision process?

Accepted Answer

A)  Interior paint colors 
B)  Homeowner association covenants 
C)  How far away it is from the nearest mall 
D)  A, B and C are all key considerations. 
A)  Interior paint colors 
B)  Homeowner association covenants 
C)  How far away it is from the nearest mall 
D)  A, B and C are all key considerations.

Question 2

Since there is no limit on how much and how fast adjustable rate mortgages (ARMs)can increase,most homeowners are afraid to take out this kind of loan.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is false about condominiums?

Accepted Answer

A)  Association dues are required. 
B)  An individual owner must mow the grass or make any repairs to the common areas when needed. 
C)  They share common areas such as a pool, tennis court, and club house. 
D)  They combine funds for maintenance. 
A)  Association dues are required. 
B)  An individual owner must mow the grass or make any repairs to the common areas when needed. 
C)  They share common areas such as a pool, tennis court, and club house. 
D)  They combine funds for maintenance.

Question 4

Lucky Louie is putting together an offer on a previously owned home he wants to buy.The home has 2,200 square feet of living space and is priced at $225,000. Upon his inspection,the condition of the roof is not good,and the central air system is on its last leg.Louie estimates replacement costs for these two systems to be a minimum of $17,000.Recent comps in the neighborhood show a 2,400 square foot house in good condition having sold for $245,000 just one month ago.What should Louie offer?

Accepted Answer

A)  $225,000 
B)  $206,000 
C)  $208,000 
D)  Stay away from a house needing major system repairs. 
A)  $225,000 
B)  $206,000 
C)  $208,000 
D)  Stay away from a house needing major system repairs.

Question 5

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

Question 6

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 7

A market analysis is not

Accepted Answer

A)  an estimate of the price of a home. 
B)  a guarantee of the price you will receive when selling a home. 
C)  based on similar homes in the area. 
D)  determined by multiplying the number of square feet in the home by the average price per square foot of comparable homes. 
A)  an estimate of the price of a home. 
B)  a guarantee of the price you will receive when selling a home. 
C)  based on similar homes in the area. 
D)  determined by multiplying the number of square feet in the home by the average price per square foot of comparable homes.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Of the following criteria for selecting a home,which would probably be least important for buyers older than 55?

Accepted Answer

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

Question 10

If you think interest rates will rise in the near future,you should seek an adjustable rate mortgage (ARM).

Accepted Answer

A) True 
 B)False

Question 11

List four key components of closing costs.

Accepted Answer

Any combination of the followi

Question 12

There are a number of different mortgage types to choose from in financing a house or condominium,such as fixed or variable loans for 15 or 30 years.

Accepted Answer

A) True 
 B)False

Question 13

By shopping around,a homeowner can probably avoid which of the following fees?

Accepted Answer

A)  Title search 
B)  Title insurance 
C)  Appraisal fee 
D)  Loan origination fee 
A)  Title search 
B)  Title insurance 
C)  Appraisal fee 
D)  Loan origination fee

Question 14

Use the following two columns of items to answer the matching questions below:
-Closing costs

Accepted Answer

A) title search and insurance, appraisal fee, and other costs 
B) fees that are a percentage of the purchase price and are paid by the borrower to the lender to obtain a reduction in the interest rate 
A) title search and insurance, appraisal fee, and other costs 
B) fees that are a percentage of the purchase price and are paid by the borrower to the lender to obtain a reduction in the interest rate

Question 15

The schedule that shows your monthly home payment and the amounts applied to principal and interest each month is called a depreciation table.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Use the following two columns of items to answer the matching questions below:
-fixed-rate mortgage

Accepted Answer

A) schedule of payments, interest expense, and balance 
B) fixed interest rate until maturity 
A) schedule of payments, interest expense, and balance 
B) fixed interest rate until maturity

Question 18

To determine how much home you can afford to purchase,you should not consider

Accepted Answer

A)  finding a Web site that has a good mortgage calculator. 
B)  looking at your budget, balance sheet, and income statement. 
C)  money you might receive if you win a small lottery. 
D)  consulting a loan officer. 
A)  finding a Web site that has a good mortgage calculator. 
B)  looking at your budget, balance sheet, and income statement. 
C)  money you might receive if you win a small lottery. 
D)  consulting a loan officer.

Question 19

All of the following illustrate lessons learned regarding the 2008-2009 financial crisis except

Accepted Answer

A)  housing conditions have a strong impact on the economy. 
B)  economic conditions affect the demand for homes. 
C)  sellers were able to attract potential buyers by slightly reducing sale prices. 
D)  allowing unqualified mortgage applicants to qualify for mortgages hurt the housing market. 
A)  housing conditions have a strong impact on the economy. 
B)  economic conditions affect the demand for homes. 
C)  sellers were able to attract potential buyers by slightly reducing sale prices. 
D)  allowing unqualified mortgage applicants to qualify for mortgages hurt the housing market.

Question 20

Homeowner's association fees are not

Accepted Answer

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

When buying a home,which of the factors below should be considered in the decision process?

Since there is no limit on how much and how fast adjustable rate mortgages (ARMs)can increase,most homeowners are afraid to take out this kind of loan.

Which of the following is false about condominiums?

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

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

A market analysis is not

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

Of the following criteria for selecting a home,which would probably be least important for buyers older than 55?

If you think interest rates will rise in the near future,you should seek an adjustable rate mortgage (ARM).

List four key components of closing costs.

There are a number of different mortgage types to choose from in financing a house or condominium,such as fixed or variable loans for 15 or 30 years.

By shopping around,a homeowner can probably avoid which of the following fees?

Use the following two columns of items to answer the matching questions below: -Closing costs

The schedule that shows your monthly home payment and the amounts applied to principal and interest each month is called a depreciation table.

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

Use the following two columns of items to answer the matching questions below: -fixed-rate mortgage

To determine how much home you can afford to purchase,you should not consider

All of the following illustrate lessons learned regarding the 2008-2009 financial crisis except

Homeowner's association fees are not

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

Exam 10: Purchasing and Financing a Home

When buying a home,which of the factors below should be considered in the decision process?

Since there is no limit on how much and how fast adjustable rate mortgages (ARMs)can increase,most homeowners are afraid to take out this kind of loan.

Which of the following is false about condominiums?

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

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

A market analysis is not

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

Of the following criteria for selecting a home,which would probably be least important for buyers older than 55?

If you think interest rates will rise in the near future,you should seek an adjustable rate mortgage (ARM).

List four key components of closing costs.

There are a number of different mortgage types to choose from in financing a house or condominium,such as fixed or variable loans for 15 or 30 years.

By shopping around,a homeowner can probably avoid which of the following fees?

Use the following two columns of items to answer the matching questions below: -Closing costs

The schedule that shows your monthly home payment and the amounts applied to principal and interest each month is called a depreciation table.

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

Use the following two columns of items to answer the matching questions below: -fixed-rate mortgage

To determine how much home you can afford to purchase,you should not consider

All of the following illustrate lessons learned regarding the 2008-2009 financial crisis except

Homeowner's association fees are not

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