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Franklin wants to sell his house himself. Which of the following is NOT correct about his sale?


A) He should create a detailed information sheet and distribute it in stores and other public areas.
B) He should plan to spend time and effort in the sales process.
C) He should require potential buyers to provide names, addresses, telephone numbers, and background information.
D) He should show the house only when he is home alone.
E) He should provide information about the availability of financing and financing requirements.

F) A) and E)
G) B) and E)

Correct Answer

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Given the information here, what is the total cost of renting per year? * Annual rent payments* Annual renter’s insurance* Annual interest lost on security deposit* Value of apartment$14,400$300$10$150,000\begin{array}{c}\begin{array}{l}\text{* Annual rent payments}\\\text{* Annual renter's insurance}\\\\\text{* Annual interest lost on security deposit}\\\text{* Value of apartment}\\\end{array}\begin{array}{r}\$ 14,400 \\\$ 300 \\\\\$ 10 \\\$ 150,000\\\end{array}\end{array}


A) $14,400
B) $14,700
C) $14,710
D) $150,000
E) $164,700

F) A) and B)
G) D) and E)

Correct Answer

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Which of the following is a form of housing in which the units are owned by a nonprofit organization?


A) Condominium
B) Cooperative housing
C) Manufactured home
D) Single-family dwelling
E) Townhouse

F) A) and C)
G) C) and E)

Correct Answer

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Donald wanted to buy a house in the country, so he sought advice from his cousin Evan. Evan explained the advantages and disadvantages of home ownership; however, he had some information incorrect. Which of the following is incorrect?


A) An advantage is that Donald can deduct mortgage interest and real estate taxes.
B) A disadvantage is that Donald is responsible for maintenance and costs of repairs and home improvements.
C) An advantage is that the down payment required is less than the security deposit for a rental.
D) A disadvantage is that real estate taxes are a major expense for homeowners.
E) An advantage is that Donald can paint his house bright purple with green trim to match his college's colors.

F) A) and E)
G) B) and D)

Correct Answer

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A handyman's special is a home that needs work and that you are able to get at a lower price .

A) True
B) False

Correct Answer

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Private mortgage insurance


A) Cannot be avoided.
B) Is part of all mortgages.
C) Is usually required if the down payment is less than 25%.
D) Must be terminated automatically when the homeowner's equity reaches 22% of the property value at the time the mortgage was executed.
E) Protects the buyer from financial loss if the value of the home increases.

F) A) and E)
G) A) and B)

Correct Answer

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Most low- and middle-income people can qualify for a VA-guaranteed loan.

A) True
B) False

Correct Answer

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Elaine purchased her living unit in a building with five other separate units. She purchased a


A) Prefabricated home.
B) Duplex.
C) Manufactured home.
D) Single-family dwelling.
E) Townhouse.

F) B) and C)
G) B) and D)

Correct Answer

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Major factors that affect the affordability of your mortgage include all of the following except


A) The amount available for a down payment.
B) Current mortgage rates.
C) Income.
D) Length of the loan.
E) Size of the home.

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

Correct Answer

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A condominium is a form of housing in which the units in a building are owned by a nonprofit organization.

A) True
B) False

Correct Answer

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Each year about 50% of home sales are made by the home's owners.

A) True
B) False

Correct Answer

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At the closing of a home purchase, the buyer and seller conducts a walk-through of the property.

A) True
B) False

Correct Answer

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Angela wanted to rent an apartment, so her landlord required her to sign a lease. The lease is a legal document that defines the conditions of her rental agreement.

A) True
B) False

Correct Answer

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Pauline just submitted an offer on her dream home. As evidence of good faith , she also included a(n)


A) Appraisal.
B) Contingency clause.
C) Dual agent.
D) Earnest money.
E) Counteroffer

F) All of the above
G) B) and E)

Correct Answer

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An advantage of a buy-down is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.

A) True
B) False

Correct Answer

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Brett bought a house five years ago for $150,000. At that time he borrowed $140,000 from his bank. The house is now worth $162,000. The current value of his mortgage must be no higher than --- for him to request termination of his PMI policy.


A) $122,000.
B) $126,360.
C) $140,000.
D) $150,000.
E) $162,000.

F) A) and E)
G) B) and D)

Correct Answer

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Ricky has a conventional mortgage. He can monitor the reduction of his loan balance through his payments by using _____ information.


A) amortization
B) escrow
C) lock
D) PMI
E) points

F) A) and C)
G) B) and E)

Correct Answer

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Veronica has had a variable-rate mortgage for several years. Unfortunately, the monthly mortgage payments have not covered her interest owed. As a result, her home equity is decreasing because of


A) ARM.
B) FHA loan.
C) Negative amortization.
D) Buy-down.
E) VA loan.

F) A) and D)
G) C) and D)

Correct Answer

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The primary benefit of a home equity loan is


A) Its limited availability.
B) The deductibility of the loan interest on federal taxes.
C) The required monthly payments.
D) Tax-free income in the form of a loan.
E) All of the above are primary benefits.

F) B) and D)
G) A) and E)

Correct Answer

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As a result of being an armed services veteran, Dan should be eligible for a(n)


A) ARM.
B) FHA loan.
C) Negative amortization.
D) Payment cap.
E) VA loan.

F) A) and C)
G) A) and D)

Correct Answer

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Showing 41 - 60 of 97

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