Question 1

Which of the following expenses is paid from an escrow account?

Accepted Answer

A)  Title insurance
B)  Property taxes
C)  Points
D)  Loan application fee
E)  Real estate agent's commissionF) A) and E)
G) A) and D)

Question 2

Prepaid interest charged by a mortgage lender is called:

Accepted Answer

A)  Escrow
B)  Points
C)  Origination fee
D)  Title fee
E)  DeedF) B) and C)
G) A) and E)

Question 3

Jerry Watson is considering buying a home.What five actions would you recommend for him to take to accomplish this goal of buying a home?

Accepted Answer

The process of buying a home involves th...

Question 4

If you sell your home without a real estate agent,you should still employ the services of a(n) ________ to assist you with the contract and the closing.

Accepted Answer

A)  broker
B)  insurance agent
C)  lawyer
D)  contractor
E)  rental agentF) C) and E)
G) C) and D)

Question 5

Explain negative amortization and how such a situation can occur.

Accepted Answer

When mortgage payment amounts do not ris...

Question 6

Earnest money is used:

Accepted Answer

A)  to pay real estate property taxes.
B)  to reduce the mortgage interest rate.
C)  as evidence of good faith by a homebuyer.
D)  to pay the real estate agent's commission.
E)  to pay a mortgage application fee.F) B) and D)
G) All of the above

Question 7

One service provided by a real estate agent when selling your home is:

Accepted Answer

A)  providing legal advice.
B)  completing a mortgage application.
C)  screening potential buyers.
D)  making needed repairs.
E)  conducting a home inspection.F) C) and E)
G) A) and C)

Question 8

James Monroe is a member of a nonprofit organization that owns a building.He can occupy one of its units as long as he owns stock in the organization.What type of housing is James most likely living in?

Accepted Answer

A)  A condominium
B)  A duplex
C)  A cooperative
D)  A prefabricated home
E)  A mobile homeF) All of the above
G) A) and C)

Question 9

Kate plans to rent instead of buying her housing.Which advantage of renting will she realize?

Accepted Answer

A)  Tax deductions
B)  Ease of mobility
C)  Property value increases
D)  Restricted lifestyle
E)  Home remodeling flexibilityF) A) and B)
G) B) and D)

Question 10

Legislation that requires that loan applicants be given certain information,including an estimate of the costs,three days before the closing,is known as:

Accepted Answer

A)  the Real Estate Settlement Procedures Act.
B)  the Cooperative Lending Act.
C)  the Truth in Lending Act.
D)  the Title Insurance Act.
E)  the Real Estate Investment Act.F) A) and B)
G) A) and E)

Question 11

Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to possibly avoid a lower home value after your purchase.

Accepted Answer

A) True 
 B)False

Question 12

A home equity loan may also be referred to as a ________ mortgage.

Accepted Answer

A)  shared-appreciation
B)  graduated-payment
C)  growing-equity
D)  second
E)  buy-downF) A) and D)
G) A) and E)

Question 13

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

Accepted Answer

A)  buy-down.
B)  discount point.
C)  float.
D)  rate cap.
E)  payment cap.F) A) and C)
G) B) and E)

Question 14

Your selection for a place of residence is most likely to be influenced by your:

Accepted Answer

A)  lifestyle.
B)  gender.
C)  favorite restaurant.
D)  credit score.
E)  number of years employed.F) B) and C)
G) C) and D)

Question 15

The appraised value of your home is the:

Accepted Answer

A)  value used to calculate property taxes.
B)  estimated current value of the property.
C)  price you paid to purchase the home.
D)  amount of money a buyer has offered to purchase the home.
E)  cost remaining after the down payment.F) B) and C)
G) A) and E)

Question 16

Prefabricated homes refers to:

Accepted Answer

A)  nonprofit ownership.
B)  government leasing of living units.
C)  rental units available to government employees.
D)  ownership available to low-income individuals.
E)  housing units that are partially assembled in factories.F) B) and C)
G) A) and E)

Question 17

Nicole and Larry have decided to perform the landscaping of their new home by themselves.They also plan to take a do-it-yourself class at a local home store so they can replace the tile in the master bathroom without using a contractor.The effect of performing these tasks themselves will result in an increase in their:

Accepted Answer

A)  principal.
B)  contingencies.
C)  escrow account.
D)  sweat equity.
E)  buy-down.F) B) and C)
G) C) and D)

Question 18

Jennifer Garland is purchasing a home with components built in a factory and then assembled at the housing site.What type of housing is Jennifer purchasing?

Accepted Answer

A)  Condominium
B)  Duplex
C)  Cooperative
D)  Prefabricated home
E)  PenthouseF) B) and C)
G) None of the above

Question 19

An escrow account is designed to reduce the cost of a mortgage.

Accepted Answer

A) True 
 B)False

Question 20

Which document does the seller use to guarantee the title is good?

Accepted Answer

A)  Title
B)  Escrow account
C)  Settlement statement
D)  Appraisal
E)  Warranty deedF) A) and B)
G) B) and C)

Exam 9: The Housing Decision: Factors and Finances

One service provided by a real estate agent when selling your home is:

Correct Answer
verified

A home equity loan may also be referred to as a ________ mortgage.

Correct Answer
verified

Prefabricated homes refers to:

Correct Answer
verified

Legislation that requires that loan applicants be given certain information,including an estimate of the costs,three days before the closing,is known as:

Correct Answer
verified

Explain negative amortization and how such a situation can occur.

Correct Answer
verified
When mortgage payment amounts do not ris...
View Answer

Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to possibly avoid a lower home value after your purchase.

Correct Answer
verified

Kate plans to rent instead of buying her housing.Which advantage of renting will she realize?

Correct Answer
verified

Correct Answer
verified

Your selection for a place of residence is most likely to be influenced by your:

Correct Answer
verified

Earnest money is used:

Correct Answer
verified

James Monroe is a member of a nonprofit organization that owns a building.He can occupy one of its units as long as he owns stock in the organization.What type of housing is James most likely living in?

Correct Answer
verified

The appraised value of your home is the:

Correct Answer
verified

An escrow account is designed to reduce the cost of a mortgage.

Correct Answer
verified

Prepaid interest charged by a mortgage lender is called:

Correct Answer
verified

Jennifer Garland is purchasing a home with components built in a factory and then assembled at the housing site.What type of housing is Jennifer purchasing?

Correct Answer
verified

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

Correct Answer
verified

Jerry Watson is considering buying a home.What five actions would you recommend for him to take to accomplish this goal of buying a home?

Correct Answer
verified
The process of buying a home involves th...
View Answer

If you sell your home without a real estate agent,you should still employ the services of a(n) ________ to assist you with the contract and the closing.

Correct Answer
verified

Which of the following expenses is paid from an escrow account?

Correct Answer
verified

Which document does the seller use to guarantee the title is good?

Correct Answer
verified

Exam 9: The Housing Decision: Factors and Finances

One service provided by a real estate agent when selling your home is:

Correct AnswerverifiedShow Answer

A home equity loan may also be referred to as a ________ mortgage.

Correct AnswerverifiedShow Answer

Prefabricated homes refers to:

Correct AnswerverifiedShow Answer

Legislation that requires that loan applicants be given certain information,including an estimate of the costs,three days before the closing,is known as:

Correct AnswerverifiedShow Answer

Explain negative amortization and how such a situation can occur.

Correct AnswerverifiedWhen mortgage payment amounts do not ris...View AnswerShow Answer

Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to possibly avoid a lower home value after your purchase.

Correct AnswerverifiedShow Answer

Kate plans to rent instead of buying her housing.Which advantage of renting will she realize?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Your selection for a place of residence is most likely to be influenced by your:

Correct AnswerverifiedShow Answer

Earnest money is used:

Correct AnswerverifiedShow Answer

James Monroe is a member of a nonprofit organization that owns a building.He can occupy one of its units as long as he owns stock in the organization.What type of housing is James most likely living in?

Correct AnswerverifiedShow Answer

The appraised value of your home is the:

Correct AnswerverifiedShow Answer

An escrow account is designed to reduce the cost of a mortgage.

Correct AnswerverifiedShow Answer

Prepaid interest charged by a mortgage lender is called:

Correct AnswerverifiedShow Answer

Jennifer Garland is purchasing a home with components built in a factory and then assembled at the housing site.What type of housing is Jennifer purchasing?

Correct AnswerverifiedShow Answer

You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

Correct AnswerverifiedShow Answer

Jerry Watson is considering buying a home.What five actions would you recommend for him to take to accomplish this goal of buying a home?

Correct AnswerverifiedThe process of buying a home involves th...View AnswerShow Answer

If you sell your home without a real estate agent,you should still employ the services of a(n) ________ to assist you with the contract and the closing.

Correct AnswerverifiedShow Answer

Which of the following expenses is paid from an escrow account?

Correct AnswerverifiedShow Answer

Which document does the seller use to guarantee the title is good?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
When mortgage payment amounts do not ris...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The process of buying a home involves th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified