Question 1

In a co-op, the buyer receives title to a unit and joint ownership of the common areas.

Accepted Answer

A) True 
 B)False

Question 2

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer and then negotiates the price upward prior to you signing the sales contract.

Accepted Answer

A) True 
 B)False

Question 3

A(n) _____  ratio specifies the maximum percentage of the value of a property that a lender is willing to loan.

Accepted Answer

A)  affordability-to-expense 
B)  loan-to-value 
C)  rent-to-mortgage 
D)  mortgage-points-to-closing-costs 
E)  points-to-mortgage 
A)  affordability-to-expense 
B)  loan-to-value 
C)  rent-to-mortgage 
D)  mortgage-points-to-closing-costs 
E)  points-to-mortgage

Question 4

The listing of properties in a local Multiple Listing Service (MLS) cannot be accessed by all buyers and sellers.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: 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. 
Terminating a lease early is typically [ difficult | easy ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 6

Depreciation is not an important consideration since it is not a recurring out-of-pocket cost.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

If you make a down payment of $11,000 on a house worth $110,000, the lenders will require _____ because of the size of the down payment.

Accepted Answer

A)  closing points 
B)  a bond 
C)  private mortgage insurance (PMI) 
D)  application fees 
E)  homeowner's insurance 
A)  closing points 
B)  a bond 
C)  private mortgage insurance (PMI) 
D)  application fees 
E)  homeowner's insurance

Question 9

A biweekly mortgage refers to:

Accepted Answer

A)  a mortgage that starts with unusually low payments that rise over several years to a fixed payment. 
B)  financing made available by a builder or seller to a potential new-home buyer at well below market interest rates, often only for a short period. 
C)  a fixed-rate mortgage with payments that increase over a specific period. 
D)  a mortgage that requires the borrower to pay only interest. 
E)  a loan on which payments equal to half the regular monthly payment are made every 2 weeks. 
A)  a mortgage that starts with unusually low payments that rise over several years to a fixed payment. 
B)  financing made available by a builder or seller to a potential new-home buyer at well below market interest rates, often only for a short period. 
C)  a fixed-rate mortgage with payments that increase over a specific period. 
D)  a mortgage that requires the borrower to pay only interest. 
E)  a loan on which payments equal to half the regular monthly payment are made every 2 weeks.

Question 10

INSTRUCTIONS: 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. 
Customary ratios for a conventional mortgage stipulate that monthly mortgage payments cannot exceed [ 10 to 15% | 25 to 35% ] of the borrower's monthly gross income.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 11

Fredrick purchased a property worth $150,000 on mortgage. He paid $30,000 as a down payment on this property. However, a recent slump in real estate prices forced Fredrick to sell the property for $115,000 only 2 months later. This sale is termed a(n):

Accepted Answer

A)  real estate declining equity. 
B)  real estate short sale. 
C)  fixed mortgage sale. 
D)  shrinking principal sale. 
E)  indexed equity. 
A)  real estate declining equity. 
B)  real estate short sale. 
C)  fixed mortgage sale. 
D)  shrinking principal sale. 
E)  indexed equity.

Question 12

INSTRUCTIONS: 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 most popular type of housing is [ single-family homes | cooperative apartments ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

INSTRUCTIONS: 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. 
If your lender charges 1½ mortgage points on a house selling for $100,000 on which there is to be a $90,000 loan, the points will cost you [ $1,350 | $1,500 ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 14

_____ is a situation where homeowners owe more on their mortgage than what their homes are worth.

Accepted Answer

A)  Negative equity 
B)  A foreclosure 
C)  A restructure 
D)  Inflation 
E)  An expanded mortgage 
A)  Negative equity 
B)  A foreclosure 
C)  A restructure 
D)  Inflation 
E)  An expanded mortgage

Question 15

Greg has negotiated a $20,000 price on a new pickup truck. The manufacturer is offering a $1,500 rebate or 3.9%, 3-year financing. Greg is also able to get 7%, 3-year financing from his credit union. If Greg plans to finance $18,000 over 3 years, should he take the 3.9% financing or the 7% financing? (Show all work and round to two decimal places.)

Accepted Answer

Calculation of PMT for 3.9%, 3-year fina

Question 16

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

Accepted Answer

A)  interest 
B)  principal 
C)  property taxes 
D)  closing costs 
E)  operating expenses 
A)  interest 
B)  principal 
C)  property taxes 
D)  closing costs 
E)  operating expenses

Question 17

INSTRUCTIONS: 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 major variable cost of owning a car is [ the loan payment | gasoline ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 18

With prequalification, a buyer can:

Accepted Answer

A)  negotiate a price lower than the quoted price on the property. 
B)  correct any problems on his or her credit report . 
C)  get a comprehensive list of all the suitable properties in a locality. 
D)  bargain for additional time in a property deal. 
E)  reduce the required down payment. 
A)  negotiate a price lower than the quoted price on the property. 
B)  correct any problems on his or her credit report . 
C)  get a comprehensive list of all the suitable properties in a locality. 
D)  bargain for additional time in a property deal. 
E)  reduce the required down payment.

Question 19

Earnest money is the sum of money the home buyer pledges with the:

Accepted Answer

A)  lender to guarantee the purchase. 
B)  seller to indicate the intent to purchase. 
C)  realtor for finding the desired home within a preset budget. 
D)  lender to originate the loan. 
E)  financial institution to prequalify for a mortgage loan. 
A)  lender to guarantee the purchase. 
B)  seller to indicate the intent to purchase. 
C)  realtor for finding the desired home within a preset budget. 
D)  lender to originate the loan. 
E)  financial institution to prequalify for a mortgage loan.

Question 20

_____ are the expenses that borrowers pay during the final step of a real estate purchase.

Accepted Answer

A)  Amortization costs 
B)  Closing costs 
C)  Property taxes 
D)  Insurance costs 
E)  Mortgage interest expenses 
A)  Amortization costs 
B)  Closing costs 
C)  Property taxes 
D)  Insurance costs 
E)  Mortgage interest expenses

In a co-op, the buyer receives title to a unit and joint ownership of the common areas.

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer and then negotiates the price upward prior to you signing the sales contract.

A(n) _____ ratio specifies the maximum percentage of the value of a property that a lender is willing to loan.

The listing of properties in a local Multiple Listing Service (MLS) cannot be accessed by all buyers and sellers.

INSTRUCTIONS: 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. Terminating a lease early is typically [ difficult | easy ].

Depreciation is not an important consideration since it is not a recurring out-of-pocket cost.

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

If you make a down payment of $11,000 on a house worth $110,000, the lenders will require _____ because of the size of the down payment.

A biweekly mortgage refers to:

Fredrick purchased a property worth $150,000 on mortgage. He paid $30,000 as a down payment on this property. However, a recent slump in real estate prices forced Fredrick to sell the property for $115,000 only 2 months later. This sale is termed a(n):

INSTRUCTIONS: 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 most popular type of housing is [ single-family homes | cooperative apartments ].

_____ is a situation where homeowners owe more on their mortgage than what their homes are worth.

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

INSTRUCTIONS: 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 major variable cost of owning a car is [ the loan payment | gasoline ].

With prequalification, a buyer can:

Earnest money is the sum of money the home buyer pledges with the:

_____ are the expenses that borrowers pay during the final step of a real estate purchase.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 5: Making Automobile and Housing Decisions

In a co-op, the buyer receives title to a unit and joint ownership of the common areas.

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer and then negotiates the price upward prior to you signing the sales contract.

A(n) _____ ratio specifies the maximum percentage of the value of a property that a lender is willing to loan.

The listing of properties in a local Multiple Listing Service (MLS) cannot be accessed by all buyers and sellers.

INSTRUCTIONS: 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. Terminating a lease early is typically [ difficult | easy ].

Depreciation is not an important consideration since it is not a recurring out-of-pocket cost.

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

If you make a down payment of $11,000 on a house worth $110,000, the lenders will require _____ because of the size of the down payment.

A biweekly mortgage refers to:

Fredrick purchased a property worth $150,000 on mortgage. He paid $30,000 as a down payment on this property. However, a recent slump in real estate prices forced Fredrick to sell the property for $115,000 only 2 months later. This sale is termed a(n):

INSTRUCTIONS: 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 most popular type of housing is [ single-family homes | cooperative apartments ].

_____ is a situation where homeowners owe more on their mortgage than what their homes are worth.

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

INSTRUCTIONS: 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 major variable cost of owning a car is [ the loan payment | gasoline ].

With prequalification, a buyer can:

Earnest money is the sum of money the home buyer pledges with the:

_____ are the expenses that borrowers pay during the final step of a real estate purchase.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters