Question 1

The main financial benefit of owning is

Accepted Answer

A)   lower living expenses.
B)   don't pay GST.
C)   investment value growth.
D)   lower initial costs.
E)   high financial commitment.F) A) and B)
G) B) and D)

Question 2

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 20-year mortgage instead of a 25-year mortgage
D)   making larger deposits to the escrow account
E)   making smaller deposit to the escrow accountF) A) and B)
G) A) and C)

Question 3

Current interest rates can affect the price of a home.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of a closing cost?

Accepted Answer

A)   origination fee
B)   mortgage application fee
C)   earnest money
D)   deed recording fee
E)   down paymentF) None of the above
G) C) and E)

Question 5

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) A) and B)
G) B) and D)

Question 6

What is the purpose of subletting an apartment?

Accepted Answer

A)   to increase the rent
B)   to lower maintenance costs
C)   to convert the units to condominiums
D)   to meet certain government housing regulations
E)   to obtain another tenant to complete a lease periodF) B) and E)
G) A) and E)

Question 7

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.F) A) and B)
G) A) and C)

Question 8

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

Question 9

The purpose of a counteroffer is to

Accepted Answer

A)   negotiate the purchase price.
B)   reduce mortgage payments.
C)   lower real estate property taxes.
D)   avoid paying points at closing.
E)   avoid paying the real estate agent's commission.F) A) and B)
G) A) and C)

Question 10

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 D)
G) B) and C)

Question 11

Which document is used to transfer ownership of property from one party to another?

Accepted Answer

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

Question 12

A real estate agent can best assist a homebuyer by

Accepted Answer

A)   assisting in getting a mortgage
B)   setting the purchase price.
C)   offering new home warranties.
D)   assisting you in obtaining financing.
E)   paying the first month's mortgage payment.F) A) and E)
G) D) and E)

Question 13

Zoning laws are restrictions on how the property area can be used.

Accepted Answer

A) True 
 B)False

Question 14

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 7 percent instead of 8 percent
C)   obtaining a 25-year mortgage instead of a 20-year mortgage
D)   making larger deposits to the escrow account
E)   making smaller deposit to the escrow accountF) A) and E)
G) None of the above

Question 15

A lease always gives the landlord the right to:

Accepted Answer

A)   to increase the rent
B)   to evict the tenant at any time
C)   to take legal action against a tenant for nonpayment of rent
D)   to ignore government housing regulations
E)   cancel the leaseF) B) and E)
G) B) and C)

Question 16

A lease only protects the rights of the tenant.

Accepted Answer

A) True 
 B)False

Question 17

Closing costs are the fees and charges owed when making the decision to refinance a home.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an example of a conventional mortgage?

Accepted Answer

A)   a First Home mortgage
B)   a buy down
C)   a fixed rate mortgage
D)   a shared appreciation mortgage
E)   a home equity loanF) None of the above
G) B) and E)

Question 19

Which of the following is an example of a closing cost?

Accepted Answer

A)   origination fee
B)   mortgage application fee
C)   earnest money
D)   title insurance
E)   down paymentF) A) and D)
G) A) and C)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 7: The Finances of Housing

Closing costs are the fees and charges owed when making the decision to refinance a home.

Correct AnswerverifiedShow Answer

Which document is used to transfer ownership of property from one party to another?

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

Correct AnswerverifiedShow Answer

A common opportunity cost associated with renting is

Correct AnswerverifiedShow Answer

What is the purpose of subletting an apartment?

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Current interest rates can affect the price of a home.

Correct AnswerverifiedShow Answer

A real estate agent can best assist a homebuyer by

Correct AnswerverifiedShow Answer

A lease only protects the rights of the tenant.

Correct AnswerverifiedShow Answer

A conventional mortgage usually involves

Correct AnswerverifiedShow Answer

Zoning laws are restrictions on how the property area can be used.

Correct AnswerverifiedShow Answer

The purpose of a counteroffer is to

Correct AnswerverifiedShow Answer

A lease always gives the landlord the right to:

Correct AnswerverifiedShow Answer

The main financial benefit of owning is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is an example of a closing cost?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Renting would be most appropriate for people who

Correct AnswerverifiedShow Answer

The most commonly considered factor when selecting a home is the

Correct AnswerverifiedShow Answer

Which of the following is an example of a conventional mortgage?

Correct AnswerverifiedShow Answer

Which of the following is an example of a closing cost?

Correct AnswerverifiedShow Answer

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