Question 1

An escrow account is used to collect ____ from one's monthly mortgage payment.

Accepted Answer

A) interest 
B) principal 
C) real estate taxes 
D) homeowner's insurance 
E) c and d only 
A) interest 
B) principal 
C) real estate taxes 
D) homeowner's insurance 
E) c and d only

Question 2

If you purchase a $220,000 and make a 20% down payment,how much would 1 point cost at closing?

Accepted Answer

A) $440 
B) $1,000 
C) $1,760 
D) $2,000 
E) $2,200 
A) $440 
B) $1,000 
C) $1,760 
D) $2,000 
E) $2,200

Question 3

An increase in the "rent ratio" indicates that renting is more affordable relative to housing prices.

Accepted Answer

A) True 
 B)False

Question 4

If the maximum loan-to-value ratio that a lender will accept on a $100,000 home is 90 percent,then the borrower must make

Accepted Answer

A) a minimum down payment excluding closing costs of $10,000. 
B) a minimum down payment including closing costs of $10,000. 
C) closing costs plus points of $10,000. 
D) a maximum down payment of $10,000. 
E) none of these. 
A) a minimum down payment excluding closing costs of $10,000. 
B) a minimum down payment including closing costs of $10,000. 
C) closing costs plus points of $10,000. 
D) a maximum down payment of $10,000. 
E) none of these.

Question 5

Balloon payment mortgages generally must be refinanced.

Accepted Answer

A) True 
 B)False

Question 6

Negative amortization is possible with an adjustable-rate mortgage.

Accepted Answer

A) True 
 B)False

Question 7

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.
-The condominium buyer shares joint ownership of [common areas | living space].

Accepted Answer

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

Question 8

As home prices have fallen in recent years,the rent ratio

Accepted Answer

A) has increased and rent affordability has increased 
B) has decreased and rent affordability has decreased 
C) has increased and rent affordability has decreased 
D) has decreased and rent affordability has increased 
A) has increased and rent affordability has increased 
B) has decreased and rent affordability has decreased 
C) has increased and rent affordability has decreased 
D) has decreased and rent affordability has increased

Question 9

Points paid when a home is refinanced can all be deducted as interest in the year they are paid.

Accepted Answer

A) True 
 B)False

Question 10

Lowballing is a sales technique where the salesperson quotes a low price for a car then tries to get you to purchase a different,more expensive vehicle.

Accepted Answer

A) True 
 B)False

Question 11

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.
-The choice of the index used with an ARM will make [much | little] difference in the volatility of your payment changes.

Accepted Answer

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

Question 12

As a homeowner,the federal government may allow you to deduct interest expenses and taxes paid on the property.

Accepted Answer

A) True 
 B)False

Question 13

Homeowner's annual insurance costs usually amount to approximately ____ percent of the home's market value.

Accepted Answer

A) 0.15 to 0.20 
B) 0.25 to 0.50 
C) 0.50 to 0.75 
D) 0.75 to 1.00 
E) 1.00 to 2.00 
A) 0.15 to 0.20 
B) 0.25 to 0.50 
C) 0.50 to 0.75 
D) 0.75 to 1.00 
E) 1.00 to 2.00

Question 14

Leasing accounts for about ____ percent of all new vehicles delivered.

Accepted Answer

A) 10 
B) 14 
C) 19 
D) 25 
E) 37 
A) 10 
B) 14 
C) 19 
D) 25 
E) 37

Question 15

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.
-You have a choice of a 25-year or 30-year mortgage.Your monthly payments will be [more | less] with the 30-year loan.

Accepted Answer

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

Question 16

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

Accepted Answer

A) Residual value is less than expected. 
B) Residual value is more than expected. 
C) Mileage limits were exceeded. 
D) Both a and c apply. 
E) Both b and c apply. 
A) Residual value is less than expected. 
B) Residual value is more than expected. 
C) Mileage limits were exceeded. 
D) Both a and c apply. 
E) Both b and c apply.

Question 17

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 home prices have fallen the rent ratio has [increased | decreased].

Accepted Answer

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

Question 18

Condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

Accepted Answer

A) True 
 B)False

Question 19

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 lender gives you a choice of an 80% loan-to-value ratio or a 90% loan-to-value ratio.The interest rate for the 80% loan-to-value ratio loan will typically be [higher | lower] than the 90%.

Accepted Answer

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

An escrow account is used to collect ____ from one's monthly mortgage payment.

If you purchase a $220,000 and make a 20% down payment,how much would 1 point cost at closing?

An increase in the "rent ratio" indicates that renting is more affordable relative to housing prices.

If the maximum loan-to-value ratio that a lender will accept on a $100,000 home is 90 percent,then the borrower must make

Balloon payment mortgages generally must be refinanced.

Negative amortization is possible with an adjustable-rate mortgage.

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. -The condominium buyer shares joint ownership of [common areas | living space].

As home prices have fallen in recent years,the rent ratio

Points paid when a home is refinanced can all be deducted as interest in the year they are paid.

Lowballing is a sales technique where the salesperson quotes a low price for a car then tries to get you to purchase a different,more expensive vehicle.

As a homeowner,the federal government may allow you to deduct interest expenses and taxes paid on the property.

Homeowner's annual insurance costs usually amount to approximately ____ percent of the home's market value.

Leasing accounts for about ____ percent of all new vehicles delivered.

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

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 home prices have fallen the rent ratio has [increased | decreased].

Condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

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

An escrow account is used to collect ____ from one's monthly mortgage payment.

If you purchase a $220,000 and make a 20% down payment,how much would 1 point cost at closing?

An increase in the "rent ratio" indicates that renting is more affordable relative to housing prices.

If the maximum loan-to-value ratio that a lender will accept on a $100,000 home is 90 percent,then the borrower must make

Balloon payment mortgages generally must be refinanced.

Negative amortization is possible with an adjustable-rate mortgage.

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. -The condominium buyer shares joint ownership of [common areas | living space].

As home prices have fallen in recent years,the rent ratio

Points paid when a home is refinanced can all be deducted as interest in the year they are paid.

Lowballing is a sales technique where the salesperson quotes a low price for a car then tries to get you to purchase a different,more expensive vehicle.

As a homeowner,the federal government may allow you to deduct interest expenses and taxes paid on the property.

Homeowner's annual insurance costs usually amount to approximately ____ percent of the home's market value.

Leasing accounts for about ____ percent of all new vehicles delivered.

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

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 home prices have fallen the rent ratio has [increased | decreased].

Condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

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