Question 1

The legal document involved in renting an apartment is called a(n) :

Accepted Answer

A)   service contract.
B)   mortgage.
C)   lease.
D)   security deposit.
E)   escrow account.F) A) and B)
G) C) and E)

Question 2

Explain negative amortization and how such a situation can occur.

Accepted Answer

The answer of Explain negative amortization and how such a...

Question 3

The appraised value of your home is the:

Accepted Answer

A)   value used to calculate property taxes.
B)   estimated current market value.
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) C) and E)
G) D) and E)

Question 4

Which type of home is most apt to depreciate in value?

Accepted Answer

A)   Cooperative
B)   Mobile home
C)   Condominium
D)   Duplex
E)   Previously-owned single family homeF) B) and E)
G) None of the above

Question 5

Ted pays $4,500 in real estate property taxes and is in the 28 percent tax bracket. What is the value of this federal tax deduction?

Accepted Answer

A)   $4,500.
B)   $3,240.
C)   $2,500.
D)   $1,260.
E)   $500.F) All of the above
G) C) and D)

Question 6

Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site. What type of housing is Jennifer purchasing?

Accepted Answer

A)   Condominium
B)   Duplex
C)   Cooperative
D)   Prefabricated home
E)   PenthouseF) B) and E)
G) All of the above

Question 7

James Monroe is a member of a nonprofit organization that allows him to rent a living unit in a building. 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) B) and E)
G) A) and C)

Question 8

Renting would be most appropriate for people who:

Accepted Answer

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

Question 9

A cooperative housing arrangement involves:

Accepted Answer

A)   government-supported rental units.
B)   a nonprofit organization that rents units to its shareholders.
C)   individual ownership of a living unit in a building.
D)   factory built and on-site assembly.
E)   housing units owned by a real estate developer.F) C) and D)
G) A) and B)

Question 10

Which types of problems are least likely to be covered by a home buyer warranty?

Accepted Answer

A)   Structural
B)   Wiring
C)   Plumbing
D)   Heating/cooling
E)   ApplianceF) All of the above
G) A) and E)

Question 11

A lease protects the rights of both the tenant and the landlord.

Accepted Answer

A) True 
 B)False

Question 12

Noelle 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) C) and D)
G) B) and E)

Question 13

Brett has hired a professional to assess the soundness of the roof, foundation, and building materials of a potential home he is considering. The professional will also be checking other aspects of the home including the plumbing, heating, and cooling systems. Brett is paying for a(n) :

Accepted Answer

A)   walk-through.
B)   zoning evaluation.
C)   inspection.
D)   title search.
E)   handyman's special.F) None of the above
G) C) and E)

Question 14

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.F) A) and E)
G) None of the above

Question 15

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

Accepted Answer

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

Question 16

The purpose of a rate cap in an adjustable rate mortgage is to limit the amount by which the interest rate can vary.

Accepted Answer

A) True 
 B)False

Question 17

During which phase of the home-buying process would you assess types of housing units?

Accepted Answer

A)   Price the property
B)   Find and evaluate a property to purchase
C)   Obtain financing
D)   Determine home ownership needs
E)   Close the purchase transactionF) B) and D)
G) A) and B)

Question 18

A _________ is a building that contains exactly two separate homes.

Accepted Answer

A)   mobile home
B)   duplex
C)   condominium
D)   prefabricated home
E)   cooperativeF) A) and B)
G) A) and E)

Question 19

The most commonly considered factor when selecting a home is the:

Accepted Answer

A)   size of the home.
B)   condition of the home.
C)   location of the home.
D)   local zoning laws.
E)   current interest rates.F) B) and C)
G) A) and C)

Question 20

A renter is required to pay a security deposit of $800, on which 4 percent interest will be paid. What amount would the person earn each year?

Accepted Answer

A)   $100
B)   $64
C)   $32
D)   $16
E)   $4F) C) and D)
G) None of the above

Exam 9: The Housing Decision: Factors and Finances

During which phase of the home-buying process would you assess types of housing units?

Correct Answer
verified

Renting would be most appropriate for people who:

Correct Answer
verified

Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site. What type of housing is Jennifer purchasing?

Correct Answer
verified

Which type of home is most apt to depreciate in value?

Correct Answer
verified

Ted pays $4,500 in real estate property taxes and is in the 28 percent tax bracket. What is the value of this federal tax deduction?

Correct Answer
verified

A renter is required to pay a security deposit of $800, on which 4 percent interest will be paid. What amount would the person earn each year?

Correct Answer
verified

Which types of problems are least likely to be covered by a home buyer warranty?

Correct Answer
verified

A conventional mortgage usually involves:

Correct Answer
verified

The purpose of a rate cap in an adjustable rate mortgage is to limit the amount by which the interest rate can vary.

Correct Answer
verified

The legal document involved in renting an apartment is called a(n) :

Correct Answer
verified

A cooperative housing arrangement involves:

Correct Answer
verified

Explain negative amortization and how such a situation can occur.

Correct Answer
verified

The appraised value of your home is the:

Correct Answer
verified

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

Correct Answer
verified

Brett has hired a professional to assess the soundness of the roof, foundation, and building materials of a potential home he is considering. The professional will also be checking other aspects of the home including the plumbing, heating, and cooling systems. Brett is paying for a(n) :

Correct Answer
verified

James Monroe is a member of a nonprofit organization that allows him to rent a living unit in a building. What type of housing is James most likely living in?

Correct Answer
verified

A _________ is a building that contains exactly two separate homes.

Correct Answer
verified

Correct Answer
verified

A lease protects the rights of both the tenant and the landlord.

Correct Answer
verified

The most commonly considered factor when selecting a home is the:

Correct Answer
verified

Exam 9: The Housing Decision: Factors and Finances

During which phase of the home-buying process would you assess types of housing units?

Correct AnswerverifiedShow Answer

Renting would be most appropriate for people who:

Correct AnswerverifiedShow Answer

Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site. What type of housing is Jennifer purchasing?

Correct AnswerverifiedShow Answer

Which type of home is most apt to depreciate in value?

Correct AnswerverifiedShow Answer

Ted pays $4,500 in real estate property taxes and is in the 28 percent tax bracket. What is the value of this federal tax deduction?

Correct AnswerverifiedShow Answer

A renter is required to pay a security deposit of $800, on which 4 percent interest will be paid. What amount would the person earn each year?

Correct AnswerverifiedShow Answer

Which types of problems are least likely to be covered by a home buyer warranty?

Correct AnswerverifiedShow Answer

A conventional mortgage usually involves:

Correct AnswerverifiedShow Answer

The purpose of a rate cap in an adjustable rate mortgage is to limit the amount by which the interest rate can vary.

Correct AnswerverifiedShow Answer

The legal document involved in renting an apartment is called a(n) :

Correct AnswerverifiedShow Answer

A cooperative housing arrangement involves:

Correct AnswerverifiedShow Answer

Explain negative amortization and how such a situation can occur.

Correct AnswerverifiedShow Answer

The appraised value of your home is the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Brett has hired a professional to assess the soundness of the roof, foundation, and building materials of a potential home he is considering. The professional will also be checking other aspects of the home including the plumbing, heating, and cooling systems. Brett is paying for a(n) :

Correct AnswerverifiedShow Answer

James Monroe is a member of a nonprofit organization that allows him to rent a living unit in a building. What type of housing is James most likely living in?

Correct AnswerverifiedShow Answer

A _________ is a building that contains exactly two separate homes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A lease protects the rights of both the tenant and the landlord.

Correct AnswerverifiedShow Answer

The most commonly considered factor when selecting a home is the:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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