Question 1

Which of the following is not a recurring housing cost?

Accepted Answer

A) Mortgage payments 
B) PITI 
C) Points 
D) Maintenance and operating costs 
E) Homeowner's insurance 
A) Mortgage payments 
B) PITI 
C) Points 
D) Maintenance and operating costs 
E) Homeowner's insurance

Question 2

It's best to have an ARM with the longest adjustment interval available.

Accepted Answer

A) True 
 B)False

Question 3

From a financial perspective,the decision of whether to rent or buy is tied to how long to plan to live in the home.

Accepted Answer

A) True 
 B)False

Question 4

Someone who plans on selling his or her home within the next 3 years should get a fixed-rate mortgage.

Accepted Answer

A) True 
 B)False

Question 5

For many consumers,a good school district is an important consideration when purchasing a home.

Accepted Answer

A) True 
 B)False

Question 6

Because a co-op is technically not a "home" it does not charge a homeowner's fee.

Accepted Answer

A) True 
 B)False

Question 7

Bob and Mary Kay have gross household income of $7,000 per month.They both have great credit scores and the home they are interested in buying appraised higher than the selling price.They have combined monthly debt payments of $300 in student loans,$650 in car loans,and they pay their credit cards in full every month.The PITI on the new home will be $1,800 per month.Before they pay the $250 loan application fee,they are asking you for your opinion on whether they will get approved for a mortgage.What will you advise them?

Accepted Answer

A) Based on the 28 percent rule they can afford the $1,800 PITI and will be approved for the mortgage. 
B) Based on the 28 percent rule they cannot afford the $1,800 PITI and will be denied the mortgage. 
C) Based on the 36 percent rule they will be approved for the mortgage. 
D) Based on the 36 percent rule they have too much other debt and will be denied the mortgage. 
A) Based on the 28 percent rule they can afford the $1,800 PITI and will be approved for the mortgage. 
B) Based on the 28 percent rule they cannot afford the $1,800 PITI and will be denied the mortgage. 
C) Based on the 36 percent rule they will be approved for the mortgage. 
D) Based on the 36 percent rule they have too much other debt and will be denied the mortgage.

Question 8

You,not your lender,should determine the amount you want to borrow for a mortgage.

Accepted Answer

A) True 
 B)False

Question 9

The two most common types of two-step mortgages are the

Accepted Answer

A) 1/29 and 3/27. 
B) 5/25 and 7/23. 
C) 8/22 and 12/18. 
D) 13/17 and 15/15. 
A) 1/29 and 3/27. 
B) 5/25 and 7/23. 
C) 8/22 and 12/18. 
D) 13/17 and 15/15.

Question 10

Bryan want to buy a used car for $25,000.The dealer will finance it for 3 years at 7% APR with monthly payments.If Bryan makes all of the payments on time and pays the loan off in three years as agreed in the contract,how much interest would he have paid over the life of the loan?

Accepted Answer

A) $2,789.39 
B) $5,250.00 
C) $4,375.25 
D) $2,500.00 
A) $2,789.39 
B) $5,250.00 
C) $4,375.25 
D) $2,500.00

Question 11

Carrying credit cards can increase impulse purchasing.

Accepted Answer

A) True 
 B)False

Question 12

It's advisable to always take the biggest loan that a lender will give you.

Accepted Answer

A) True 
 B)False

Question 13

You are a newlywed,and you and your spouse have just found your dream home.Problem is,you do not have 20% for a down payment on the house.You will probably need to obtain

Accepted Answer

A) EAR. 
B) PMI. 
C) PTI. 
D) APR. 
E) none of the above. 
A) EAR. 
B) PMI. 
C) PTI. 
D) APR. 
E) none of the above.

Question 14

Most home owners have complete autonomy to remodel their dwelling to suit their own needs and tastes.

Accepted Answer

A) True 
 B)False

Question 15

Candice is purchasing a new Jeep.She has the price negotiated down to what she thought was the lowest possible price until she heard that her Jeep has a holdback amount of 3%.Is it fair for Candice to ask the dealership to take the holdback amount off her final sales price?

Accepted Answer

A) Absolutely,this would decrease the mark up price of the Jeep and save Candice additional dollars. 
B) No.The dealership would most likely lose money on the sale. 
A) Absolutely,this would decrease the mark up price of the Jeep and save Candice additional dollars. 
B) No.The dealership would most likely lose money on the sale.

Question 16

Which of the following is not a one-time fee connected with purchasing a house?

Accepted Answer

A) Down payment 
B) Private mortgage insurance 
C) Closing costs 
D) Points 
E) Origination fee 
A) Down payment 
B) Private mortgage insurance 
C) Closing costs 
D) Points 
E) Origination fee

Question 17

Which one of the following is not a key to finding housing that fits your needs?

Accepted Answer

A) Location 
B) Deciding what features you are looking for 
C) Present needs 
D) Insurance costs 
E) Future needs 
A) Location 
B) Deciding what features you are looking for 
C) Present needs 
D) Insurance costs 
E) Future needs

Question 18

What factors should be considered before signing a lease?

Accepted Answer

-Determine what you can afford (ideally

Question 19

Salvadore Dobraseri is a military veteran and has been told by a friend to check out a VA or FHA loan for the purchase of the home he and his wife are interested in.Why should he?

Accepted Answer

A) Generally,they will pay a lower interest rate. 
B) A smaller down payment is required. 
C) There are less strict financial requirements for the loan. 
D) Veterans are required to obtain this type of mortgage. 
E) A,B,and C above 
A) Generally,they will pay a lower interest rate. 
B) A smaller down payment is required. 
C) There are less strict financial requirements for the loan. 
D) Veterans are required to obtain this type of mortgage. 
E) A,B,and C above

Question 20

Jessica is buying her first new home.The home has been appraised at $330,000.For Jessica to not have to pay private mortgage insurance she must come up with a down payment of

Accepted Answer

A) $33,000. 
B) $66,000. 
C) $20,000. 
D) $80,000. 
A) $33,000. 
B) $66,000. 
C) $20,000. 
D) $80,000.

Which of the following is not a recurring housing cost?

It's best to have an ARM with the longest adjustment interval available.

From a financial perspective,the decision of whether to rent or buy is tied to how long to plan to live in the home.

Someone who plans on selling his or her home within the next 3 years should get a fixed-rate mortgage.

For many consumers,a good school district is an important consideration when purchasing a home.

Because a co-op is technically not a "home" it does not charge a homeowner's fee.

You,not your lender,should determine the amount you want to borrow for a mortgage.

The two most common types of two-step mortgages are the

Bryan want to buy a used car for $25,000.The dealer will finance it for 3 years at 7% APR with monthly payments.If Bryan makes all of the payments on time and pays the loan off in three years as agreed in the contract,how much interest would he have paid over the life of the loan?

Carrying credit cards can increase impulse purchasing.

It's advisable to always take the biggest loan that a lender will give you.

You are a newlywed,and you and your spouse have just found your dream home.Problem is,you do not have 20% for a down payment on the house.You will probably need to obtain

Most home owners have complete autonomy to remodel their dwelling to suit their own needs and tastes.

Candice is purchasing a new Jeep.She has the price negotiated down to what she thought was the lowest possible price until she heard that her Jeep has a holdback amount of 3%.Is it fair for Candice to ask the dealership to take the holdback amount off her final sales price?

Which of the following is not a one-time fee connected with purchasing a house?

Which one of the following is not a key to finding housing that fits your needs?

What factors should be considered before signing a lease?

Salvadore Dobraseri is a military veteran and has been told by a friend to check out a VA or FHA loan for the purchase of the home he and his wife are interested in.Why should he?

Jessica is buying her first new home.The home has been appraised at $330,000.For Jessica to not have to pay private mortgage insurance she must come up with a down payment of

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 8: The Home and Automobile Decision

Which of the following is not a recurring housing cost?

It's best to have an ARM with the longest adjustment interval available.

From a financial perspective,the decision of whether to rent or buy is tied to how long to plan to live in the home.

Someone who plans on selling his or her home within the next 3 years should get a fixed-rate mortgage.

For many consumers,a good school district is an important consideration when purchasing a home.

Because a co-op is technically not a "home" it does not charge a homeowner's fee.

You,not your lender,should determine the amount you want to borrow for a mortgage.

The two most common types of two-step mortgages are the

Bryan want to buy a used car for $25,000.The dealer will finance it for 3 years at 7% APR with monthly payments.If Bryan makes all of the payments on time and pays the loan off in three years as agreed in the contract,how much interest would he have paid over the life of the loan?

Carrying credit cards can increase impulse purchasing.

It's advisable to always take the biggest loan that a lender will give you.

You are a newlywed,and you and your spouse have just found your dream home.Problem is,you do not have 20% for a down payment on the house.You will probably need to obtain

Most home owners have complete autonomy to remodel their dwelling to suit their own needs and tastes.

Candice is purchasing a new Jeep.She has the price negotiated down to what she thought was the lowest possible price until she heard that her Jeep has a holdback amount of 3%.Is it fair for Candice to ask the dealership to take the holdback amount off her final sales price?

Which of the following is not a one-time fee connected with purchasing a house?

Which one of the following is not a key to finding housing that fits your needs?

What factors should be considered before signing a lease?

Salvadore Dobraseri is a military veteran and has been told by a friend to check out a VA or FHA loan for the purchase of the home he and his wife are interested in.Why should he?

Jessica is buying her first new home.The home has been appraised at $330,000.For Jessica to not have to pay private mortgage insurance she must come up with a down payment of

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters