Question 1

The job of a mortgage banker is to locate conventional loans for clients.

Accepted Answer

A) True 
 B)False

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-With a [closed-end | open-end] lease,you turn in the car at the end of the term and have no additional financial obligation as a result of the residual value.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

____ is(are)an ongoing cost of home ownership.

Accepted Answer

A) The down payment 
B) Closing costs 
C) Property taxes 
D) Sales taxes 
E) Points 
A) The down payment 
B) Closing costs 
C) Property taxes 
D) Sales taxes 
E) Points

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-As a homeowner,you can deduct the mortgage interest and [property taxes | property insurance] if you itemize on your federal taxes.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

Condominiums are generally less costly than single-family,detached homes.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a major source of home mortgages?

Accepted Answer

A) Commercial banks 
B) Thrift institutions 
C) Mortgage bankers and brokers 
D) Credit unions 
E) All of these 
A) Commercial banks 
B) Thrift institutions 
C) Mortgage bankers and brokers 
D) Credit unions 
E) All of these

Question 7

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

Accepted Answer

A) True 
 B)False

Question 8

The financing rate on the car you are leasing is called the

Accepted Answer

A) money factor. 
B) capitalized cost. 
C) residual value. 
D) purchase option. 
E) capitalcost reduction. 
A) money factor. 
B) capitalized cost. 
C) residual value. 
D) purchase option. 
E) capitalcost reduction.

Question 9

A lender will generally require private mortgage insurance (PMI)if the down payment is less than 20 percent.

Accepted Answer

A) True 
 B)False

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A decrease in the rent ratio indicates that housing has become [more | less] affordable compared to renting.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Which of the following is true regarding auto loans?

Accepted Answer

A) Longer term, lower rate, lower payment 
B) Shorter term, lower rate, lower payment 
C) Longer term, higher rate, lower payment 
D) Shorter term, higher rate, higher payment 
A) Longer term, lower rate, lower payment 
B) Shorter term, lower rate, lower payment 
C) Longer term, higher rate, lower payment 
D) Shorter term, higher rate, higher payment

Question 12

The act requiring mortgage lenders to give borrowers HUD booklets and good faith estimates of the closing costs is called the

Accepted Answer

A) Equal Credit Opportunity Act. 
B) Truth-in-Lending Act. 
C) Real Estate Settlement Procedures Act. 
D) Mortgage Lenders Act of 1980. 
E) none of the above. 
A) Equal Credit Opportunity Act. 
B) Truth-in-Lending Act. 
C) Real Estate Settlement Procedures Act. 
D) Mortgage Lenders Act of 1980. 
E) none of the above.

Question 13

A closed-end automobile lease is the most popular type of lease.

Accepted Answer

A) True 
 B)False

Question 14

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

Accepted Answer

A) True 
 B)False

Question 15

When refinancing your mortgage,you should consider

Accepted Answer

A) the interest rates of the old and new mortgages. 
B) the years you expect to remain in the home. 
C) any prepayment penalties on the old mortgage. 
D) closing costs of the new mortgage. 
E) all of these. 
A) the interest rates of the old and new mortgages. 
B) the years you expect to remain in the home. 
C) any prepayment penalties on the old mortgage. 
D) closing costs of the new mortgage. 
E) all of these.

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-There is direct ownership of your living space in a [condo | co-op apartment].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Earnest money deposits and contingency clauses are usually specified in the real estate sales contract.

Accepted Answer

A) True 
 B)False

Question 18

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

Accepted Answer

A) fixed-rate 
B) adjustable-rate 
C) balloon-payment 
D) graduated-payment 
E) growing-equity 
A) fixed-rate 
B) adjustable-rate 
C) balloon-payment 
D) graduated-payment 
E) growing-equity

Question 19

A money factor of 0.0036 on a lease is equivalent to an annual percentage rate of

Accepted Answer

A) 1.80. 
B) 3.60. 
C) 4.32. 
D) 8.64. 
E) 10.80. 
A) 1.80. 
B) 3.60. 
C) 4.32. 
D) 8.64. 
E) 10.80.

Question 20

The term condominium refers to a style of architecture.

Accepted Answer

A) True 
 B)False

The job of a mortgage banker is to locate conventional loans for clients.

____ is(are)an ongoing cost of home ownership.

Condominiums are generally less costly than single-family,detached homes.

Which of the following is a major source of home mortgages?

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

The financing rate on the car you are leasing is called the

A lender will generally require private mortgage insurance (PMI)if the down payment is less than 20 percent.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A decrease in the rent ratio indicates that housing has become [more | less] affordable compared to renting.

Which of the following is true regarding auto loans?

The act requiring mortgage lenders to give borrowers HUD booklets and good faith estimates of the closing costs is called the

A closed-end automobile lease is the most popular type of lease.

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

When refinancing your mortgage,you should consider

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -There is direct ownership of your living space in a [condo | co-op apartment].

Earnest money deposits and contingency clauses are usually specified in the real estate sales contract.

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

A money factor of 0.0036 on a lease is equivalent to an annual percentage rate of

The term condominium refers to a style of architecture.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 5: Making Automobile and Housing Decisions

The job of a mortgage banker is to locate conventional loans for clients.

____ is(are)an ongoing cost of home ownership.

Condominiums are generally less costly than single-family,detached homes.

Which of the following is a major source of home mortgages?

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

The financing rate on the car you are leasing is called the

A lender will generally require private mortgage insurance (PMI)if the down payment is less than 20 percent.

Which of the following is true regarding auto loans?

The act requiring mortgage lenders to give borrowers HUD booklets and good faith estimates of the closing costs is called the

A closed-end automobile lease is the most popular type of lease.

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

When refinancing your mortgage,you should consider

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -There is direct ownership of your living space in a [condo | co-op apartment].

Earnest money deposits and contingency clauses are usually specified in the real estate sales contract.

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

A money factor of 0.0036 on a lease is equivalent to an annual percentage rate of

The term condominium refers to a style of architecture.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters