Question 1

Lenders charge a loan origination fee to pay for the cost of

Accepted Answer

A)  processing the mortgage loan.
B)  investigating the borrower's credit rating.
C)  the title search.
D)  an appraisal of the property. A

Question 2

Lenders may reduce interest rates in return for larger down payments.

Accepted Answer

A) True 
 B)False  True

Question 3

A price-to-rent ratio above 15 can mean that the prices for homes in a community are inflated.

Accepted Answer

A) True 
 B)False  True

Question 4

An increase in the value of a home is called

Accepted Answer

A)  appreciation.
B)  depreciation.
C)  amortization.
D)  equity.

Question 5

If you borrow money from a family member at a below market interest rate for the down payment on a mortgage,the lender must pay income taxes on the ____ that would have been earned had the market interest rate been assessed.

Accepted Answer

A)  marginal interest
B)  mortgage interest
C)  assessed interest
D)  imputed interest

Question 6

Norma is buying a home with a $180,000 mortgage using a 5.5 percent,30-year loan.How much of the first month's payment will go to principal if the payment per $1000 on this loan is $5.6779?

Accepted Answer

A)  $0
B)  $197
C)  $825
D)  $1,022

Question 7

With a cooperative,the owner holds a share of the corporation that owns and manages a group of housing units.

Accepted Answer

A) True 
 B)False

Question 8

The person assigned to manage your loan application through the process is the

Accepted Answer

A)  real estate agent.
B)  loan processor.
C)  mortgage server.
D)  loan officer.

Question 9

For most homeowners,mortgage payments represent total housing costs.

Accepted Answer

A) True 
 B)False

Question 10

When estimating monthly housing costs after the purchase of a home,add an additional 10 to 15 percent to your mortgage loan payment for such things as homeowner's insurance,property taxes,maintenance,and upkeep.

Accepted Answer

A) True 
 B)False

Question 11

Many communities have a multiple-listing service (MLS),which is an information and referral network among real estate brokers allowing properties listed with a particular broker to be shown by all other brokers.

Accepted Answer

A) True 
 B)False

Question 12

One formally applies for a mortgage loan only after signing a purchase contract.

Accepted Answer

A) True 
 B)False

Question 13

Most younger people rent but 80 percent of those aged 55-64 are homeowners.

Accepted Answer

A) True 
 B)False

Question 14

How much would one pay in points on a $145,000 loan if 2 points were charged?

Accepted Answer

A)  $2,842
B)  $2,000
C)  $2,900
D)  $2,320

Question 15

Which of the following aspects of the foreclosure process is typically when the home sells for the lowest amount?

Accepted Answer

A)  Preforeclosure
B)  Foreclosure auction
C)  Short sale
D)  Underwater

Question 16

A price-to-rent ratio above the national average of_____ indicates that home prices may relatively high in a community.

Accepted Answer

A)  10
B)  15
C)  25
D)  50

Question 17

With an assumable mortgage,the buyer generally pays a down payment equal to the seller's equity in the home.

Accepted Answer

A) True 
 B)False

Question 18

Mortgage insurance is generally required for almost all mortgage loans where the initial loan-to-value ratio is more than 80 percent.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not characteristic of a growing-equity mortgage?

Accepted Answer

A)  It has a fixed interest rate.
B)  Payment increases are determined annually on the basis of inflation.
C)  Increased payments go to reducing principal owed.
D)  The loan is paid off in shorter period of time compared to a conventional loan.

Question 20

-How much would Janice and Ronald have to pay in points if they chose loan 2?

Accepted Answer

A)  $4,200
B)  $3,360
C)  $2,100
D)  $1,680

Exam 9: Obtaining Affordable Housing

Lenders charge a loan origination fee to pay for the cost of

Lenders may reduce interest rates in return for larger down payments.

A price-to-rent ratio above 15 can mean that the prices for homes in a community are inflated.

An increase in the value of a home is called

If you borrow money from a family member at a below market interest rate for the down payment on a mortgage,the lender must pay income taxes on the ____ that would have been earned had the market interest rate been assessed.

Norma is buying a home with a $180,000 mortgage using a 5.5 percent,30-year loan.How much of the first month's payment will go to principal if the payment per $1000 on this loan is $5.6779?

With a cooperative,the owner holds a share of the corporation that owns and manages a group of housing units.

The person assigned to manage your loan application through the process is the

For most homeowners,mortgage payments represent total housing costs.

When estimating monthly housing costs after the purchase of a home,add an additional 10 to 15 percent to your mortgage loan payment for such things as homeowner's insurance,property taxes,maintenance,and upkeep.

Many communities have a multiple-listing service (MLS),which is an information and referral network among real estate brokers allowing properties listed with a particular broker to be shown by all other brokers.

One formally applies for a mortgage loan only after signing a purchase contract.

Most younger people rent but 80 percent of those aged 55-64 are homeowners.

How much would one pay in points on a $145,000 loan if 2 points were charged?

Which of the following aspects of the foreclosure process is typically when the home sells for the lowest amount?

A price-to-rent ratio above the national average of_____ indicates that home prices may relatively high in a community.

With an assumable mortgage,the buyer generally pays a down payment equal to the seller's equity in the home.

Mortgage insurance is generally required for almost all mortgage loans where the initial loan-to-value ratio is more than 80 percent.

Which of the following is not characteristic of a growing-equity mortgage?

-How much would Janice and Ronald have to pay in points if they chose loan 2?