Question 1

Renting is more advantageous than buying a home for

Accepted Answer

A)  lower short-term living costs. 
B)  financial benefits. 
C)  long-term investment purposes. 
D)  receiving tax benefits. 
E)  permanence of residence. 
A)  lower short-term living costs. 
B)  financial benefits. 
C)  long-term investment purposes. 
D)  receiving tax benefits. 
E)  permanence of residence.

Question 2

The amount of the down payment will affect the amount of mortgage a person can afford.

Accepted Answer

A) True 
 B)False

Question 3

Cooperative housing involves the renting of a living unit by the people involved in ownership of the building on a nonprofit basis.

Accepted Answer

A) True 
 B)False

Question 4

Past interest rates can affect the price of a home.

Accepted Answer

A) True 
 B)False

Question 5

Lenders commonly use a GDS ratio of 50% and a TDS ratio of 60% as guidelines to determine the amount you can comfortably afford for housing.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would increase the amount that a person could afford to spend on a home?

Accepted Answer

A)  lower financial obligations 
B)  increased interest rates 
C)  increased down payment 
D)  decreased family income 
E)  increased monthly living expenses 
A)  lower financial obligations 
B)  increased interest rates 
C)  increased down payment 
D)  decreased family income 
E)  increased monthly living expenses

Question 7

Variable rate mortgages with a rate cap prevent the borrower from having to pay an interest rate significantly higher than the one in the original agreement.

Accepted Answer

A) True 
 B)False

Question 8

The purpose of an appraisal is to

Accepted Answer

A)  estimate the current value of a home. 
B)  reduce the amount paid for property taxes. 
C)  qualify for a reduced mortgage rate. 
D)  eliminate the need for home insurance. 
E)  reduce the mortgage payments. 
A)  estimate the current value of a home. 
B)  reduce the amount paid for property taxes. 
C)  qualify for a reduced mortgage rate. 
D)  eliminate the need for home insurance. 
E)  reduce the mortgage payments.

Question 9

A common opportunity cost associated with renting is

Accepted Answer

A)  interest lost on the down payment. 
B)  interest lost on closing costs. 
C)  property taxes. 
D)  maintenance costs. 
E)  interest lost on the security deposit. 
A)  interest lost on the down payment. 
B)  interest lost on closing costs. 
C)  property taxes. 
D)  maintenance costs. 
E)  interest lost on the security deposit.

Question 10

Jonathan Muyal needs to sell his home because of a job transfer to another city.What actions should Jonathan take to sell his home?

Accepted Answer

When selling a home,you should first pre

Question 11

A common financial benefit of home ownership is

Accepted Answer

A)  increased property value. 
B)  tax deductibility of the down payment. 
C)  amortization of the growth of equity. 
D)  a low security deposit. 
E)  low interest financing. 
A)  increased property value. 
B)  tax deductibility of the down payment. 
C)  amortization of the growth of equity. 
D)  a low security deposit. 
E)  low interest financing.

Question 12

Negative amortization has the effect of:

Accepted Answer

A)  extending the number of payments to pay off the mortgage. 
B)  decreasing the number of payments to pay off the mortgage. 
C)  a lower escrow account. 
D)  lower interest rates. 
E)  a lower down payment. 
A)  extending the number of payments to pay off the mortgage. 
B)  decreasing the number of payments to pay off the mortgage. 
C)  a lower escrow account. 
D)  lower interest rates. 
E)  a lower down payment.

Question 13

The purpose of title insurance is to

Accepted Answer

A)  transfer ownership of property. 
B)  reduce the chance of a decrease in property value. 
C)  guarantee the boundaries of the property. 
D)  protect an owner from changes in mortgage interest rates. 
E)  cover the closing costs of a real estate transaction. 
A)  transfer ownership of property. 
B)  reduce the chance of a decrease in property value. 
C)  guarantee the boundaries of the property. 
D)  protect an owner from changes in mortgage interest rates. 
E)  cover the closing costs of a real estate transaction.

Question 14

Gerry Bruce is considering buying a home.What actions would you recommend for her to take to accomplish this goal of buying a home?

Accepted Answer

1.determining housing needs, 2

Question 15

A conventional mortgage usually involves

Accepted Answer

A)  a variable interest rate. 
B)  a government guarantee. 
C)  a balloon payment. 
D)  equal payments. 
E)  a payment cap. 
A)  a variable interest rate. 
B)  a government guarantee. 
C)  a balloon payment. 
D)  equal payments. 
E)  a payment cap.

Question 16

As William Quintal conducts an investigation of property value factors,most real estate experts tell him that ____________ most influences the housing values in an area.

Accepted Answer

A)  community pride 
B)  style of homes 
C)  quality of schools 
D)  age of neighborhood 
E)  zoning laws 
A)  community pride 
B)  style of homes 
C)  quality of schools 
D)  age of neighborhood 
E)  zoning laws

Question 17

Which of the following are disadvantages of home ownership?

Accepted Answer

A)  limited responsibility 
B)  few financial benefits 
C)  low initial costs. 
D)  limited mobility. 
E)  lifestyle flexibility. 
A)  limited responsibility 
B)  few financial benefits 
C)  low initial costs. 
D)  limited mobility. 
E)  lifestyle flexibility.

Question 18

Which of the following would increase the speed of equity growth for a homebuyer?

Accepted Answer

A)  making a down payment of 10 percent instead of 20 percent 
B)  obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C)  obtaining a 15-year mortgage instead of a 30-year mortgage 
D)  making larger deposits to the escrow account 
E)  making smaller deposit to the escrow account 
A)  making a down payment of 10 percent instead of 20 percent 
B)  obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C)  obtaining a 15-year mortgage instead of a 30-year mortgage 
D)  making larger deposits to the escrow account 
E)  making smaller deposit to the escrow account

Question 19

Renting would be most appropriate for people who

Accepted Answer

A)  have limited funds currently available. 
B)  have difficulty establishing credit. 
C)  want to reduce their taxes. 
D)  enjoy remodeling their residence. 
E)  desire the financial benefits of increased equity. 
A)  have limited funds currently available. 
B)  have difficulty establishing credit. 
C)  want to reduce their taxes. 
D)  enjoy remodeling their residence. 
E)  desire the financial benefits of increased equity.

Question 20

At the closing of home purchase,the "earnest" money has the purpose of:

Accepted Answer

A)  paying real estate property taxes. 
B)  reducing the mortgage interest rate. 
C)  paying a mortgage application fee. 
D)  paying the real estate agent's commission. 
E)  serving as evidence of serious intent. 
A)  paying real estate property taxes. 
B)  reducing the mortgage interest rate. 
C)  paying a mortgage application fee. 
D)  paying the real estate agent's commission. 
E)  serving as evidence of serious intent.

Renting is more advantageous than buying a home for

The amount of the down payment will affect the amount of mortgage a person can afford.

Cooperative housing involves the renting of a living unit by the people involved in ownership of the building on a nonprofit basis.

Past interest rates can affect the price of a home.

Lenders commonly use a GDS ratio of 50% and a TDS ratio of 60% as guidelines to determine the amount you can comfortably afford for housing.

Which of the following would increase the amount that a person could afford to spend on a home?

Variable rate mortgages with a rate cap prevent the borrower from having to pay an interest rate significantly higher than the one in the original agreement.

The purpose of an appraisal is to

A common opportunity cost associated with renting is

Jonathan Muyal needs to sell his home because of a job transfer to another city.What actions should Jonathan take to sell his home?

A common financial benefit of home ownership is

Negative amortization has the effect of:

The purpose of title insurance is to

Gerry Bruce is considering buying a home.What actions would you recommend for her to take to accomplish this goal of buying a home?

A conventional mortgage usually involves

As William Quintal conducts an investigation of property value factors,most real estate experts tell him that ____________ most influences the housing values in an area.

Which of the following are disadvantages of home ownership?

Which of the following would increase the speed of equity growth for a homebuyer?

Renting would be most appropriate for people who

At the closing of home purchase,the "earnest" money has the purpose of:

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

Filters

Exam 7: Selecting and Financing Housing

Renting is more advantageous than buying a home for

The amount of the down payment will affect the amount of mortgage a person can afford.

Cooperative housing involves the renting of a living unit by the people involved in ownership of the building on a nonprofit basis.

Past interest rates can affect the price of a home.

Lenders commonly use a GDS ratio of 50% and a TDS ratio of 60% as guidelines to determine the amount you can comfortably afford for housing.

Which of the following would increase the amount that a person could afford to spend on a home?

Variable rate mortgages with a rate cap prevent the borrower from having to pay an interest rate significantly higher than the one in the original agreement.

The purpose of an appraisal is to

A common opportunity cost associated with renting is

Jonathan Muyal needs to sell his home because of a job transfer to another city.What actions should Jonathan take to sell his home?

A common financial benefit of home ownership is

Negative amortization has the effect of:

The purpose of title insurance is to

Gerry Bruce is considering buying a home.What actions would you recommend for her to take to accomplish this goal of buying a home?

A conventional mortgage usually involves

As William Quintal conducts an investigation of property value factors,most real estate experts tell him that ____________ most influences the housing values in an area.

Which of the following are disadvantages of home ownership?

Which of the following would increase the speed of equity growth for a homebuyer?

Renting would be most appropriate for people who

At the closing of home purchase,the "earnest" money has the purpose of:

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

Filters