Question 1

A loan-to-value ratio of 90 percent would require a buyer to make a 90% down payment.

Accepted Answer

A) True 
 B)False

Question 2

If you purchase a $110,000 and make a 10% down payment,how much would 1 point cost at closing?

Accepted Answer

A)  $ 765 
B)  $ 990 
C)  $1,100 
D)  $1,530 
E)  $1,800 
A)  $ 765 
B)  $ 990 
C)  $1,100 
D)  $1,530 
E)  $1,800

Question 3

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 real estate agent will typically be paid by the [buyer | seller] of the house.

Accepted Answer

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

Question 4

A FHA loan is insured by the federal government.

Accepted Answer

A) True 
 B)False

Question 5

The interest rate is lower on a 6-year auto loan than on a 3-year auto loan

Accepted Answer

A) True 
 B)False

Question 6

A significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property.

Accepted Answer

A) True 
 B)False

Question 7

The down payment is typically the only substantial housing cost that must be paid at the time of the purchase.

Accepted Answer

A) True 
 B)False

Question 8

Security deposits are controlled by the tenant.

Accepted Answer

A) True 
 B)False

Question 9

When buying a used car,it is very important to have it checked by a reputable mechanic.

Accepted Answer

A) True 
 B)False

Question 10

The most popular mortgage loan for financing a home purchase is a(n)

Accepted Answer

A)  conventional fixed-rate loan. 
B)  FHA loan. 
C)  VA loan. 
D)  adjustable-rate loan. 
E)  Fannie Mae loan. 
A)  conventional fixed-rate loan. 
B)  FHA loan. 
C)  VA loan. 
D)  adjustable-rate loan. 
E)  Fannie Mae loan.

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 federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

Accepted Answer

A) True 
 B)False

Question 13

Adjustable-rate mortgages with monthly payment caps can lead to negative amortization.

Accepted Answer

A) True 
 B)False

Question 14

Advantages of buying a used car rather than a new car include

Accepted Answer

A)  good mechanical condition. 
B)  will depreciate more quickly. 
C)  more choices available. 
D)  less expensive. 
E)  all of the above. 
A)  good mechanical condition. 
B)  will depreciate more quickly. 
C)  more choices available. 
D)  less expensive. 
E)  all of the above.

Question 15

Leslie has been offered the choice of either a $1,000 rebate or a 5.5%,48-month loan for the new car she is purchasing.If Leslie will be financing $15,000 and she can get a 7.5%,48-month loan at her credit union,should she take the $1,000 rebate or the 5.5% loan? (Show all work.)

Accepted Answer

@#IMG-DLM& Take the $1,000 reb

Question 16

Fixed automobile costs increase as the number of miles driven increase.

Accepted Answer

A) True 
 B)False

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.
-The biggest fixed cost of owning a car is [the loan payment | insurance].

Accepted Answer

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

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

To make a legally binding offer on a car,you must sign a sales contract that specifies the offering price and all the conditions of your offer.

Accepted Answer

A) True 
 B)False

A loan-to-value ratio of 90 percent would require a buyer to make a 90% down payment.

If you purchase a $110,000 and make a 10% down payment,how much would 1 point cost at closing?

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 real estate agent will typically be paid by the [buyer | seller] of the house.

A FHA loan is insured by the federal government.

The interest rate is lower on a 6-year auto loan than on a 3-year auto loan

A significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property.

The down payment is typically the only substantial housing cost that must be paid at the time of the purchase.

Security deposits are controlled by the tenant.

When buying a used car,it is very important to have it checked by a reputable mechanic.

The most popular mortgage loan for financing a home purchase is a(n)

Which of the following is true regarding auto loans?

The federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

Adjustable-rate mortgages with monthly payment caps can lead to negative amortization.

Advantages of buying a used car rather than a new car include

Leslie has been offered the choice of either a $1,000 rebate or a 5.5%,48-month loan for the new car she is purchasing.If Leslie will be financing $15,000 and she can get a 7.5%,48-month loan at her credit union,should she take the $1,000 rebate or the 5.5% loan? (Show all work.)

Fixed automobile costs increase as the number of miles driven increase.

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 biggest fixed cost of owning a car is [the loan payment | insurance].

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.

To make a legally binding offer on a car,you must sign a sales contract that specifies the offering price and all the conditions of your offer.

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

A loan-to-value ratio of 90 percent would require a buyer to make a 90% down payment.

If you purchase a $110,000 and make a 10% down payment,how much would 1 point cost at closing?

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 real estate agent will typically be paid by the [buyer | seller] of the house.

A FHA loan is insured by the federal government.

The interest rate is lower on a 6-year auto loan than on a 3-year auto loan

A significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property.

The down payment is typically the only substantial housing cost that must be paid at the time of the purchase.

Security deposits are controlled by the tenant.

When buying a used car,it is very important to have it checked by a reputable mechanic.

The most popular mortgage loan for financing a home purchase is a(n)

Which of the following is true regarding auto loans?

The federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

Adjustable-rate mortgages with monthly payment caps can lead to negative amortization.

Advantages of buying a used car rather than a new car include

Leslie has been offered the choice of either a $1,000 rebate or a 5.5%,48-month loan for the new car she is purchasing.If Leslie will be financing $15,000 and she can get a 7.5%,48-month loan at her credit union,should she take the $1,000 rebate or the 5.5% loan? (Show all work.)

Fixed automobile costs increase as the number of miles driven increase.

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 biggest fixed cost of owning a car is [the loan payment | insurance].

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.

To make a legally binding offer on a car,you must sign a sales contract that specifies the offering price and all the conditions of your offer.

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