Question 1

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Most people select a place of residence based on available financial resources,needs,and lifestyle.

Accepted Answer

A) True 
 B)False

Question 4

The assessed value of your home is the:

Accepted Answer

A)  value used to calculate property taxes.
B)  estimated current market value.
C)  the price you paid to purchase the home.
D)  amount of money a buyer has offered to purchase the home.
E)  cost basis assigned to your home by your insurance company.F) B) and D)
G) A) and E)

Question 5

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

Accepted Answer

The answer of Gerry Intel is considering buying a home.What...

Question 6

A loan based on the equity of the home that provides the homeowner with tax-free income and which is paid back when the home is sold is called a(an) :

Accepted Answer

A)  conventional mortgage.
B)  growing equity mortgage.
C)  second mortgage.
D)  reverse mortgage.
E)  adjustable rate mortgagE.F) D) and E)
G) A) and E)

Question 7

Differentiate between a cooperative and a condominium.Be sure to include a discussion of the ownership and responsibility for the common areas.

Accepted Answer

The answer of Differentiate between a cooperative and a condominium.Be...

Question 8

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 E)
G) None of the above

Question 9

What is the name commonly used to refer to the recent national crisis in which with many mortgages were issued to borrowers with poor credit histories,resulting in numerous loan defaults?

Accepted Answer

A)  mortgage meltdown
B)  subprime crisis
C)  credit default swap
D)  credit score crisis
E)  mortgage balloon crisisF) None of the above
G) D) and E)

Question 10

A common opportunity cost associated with renting is interest lost on money spent for:

Accepted Answer

A)  the down payment.
B)  closing costs.
C)  property taxes.
D)  maintenance costs.
E)  the security deposit.F) B) and D)
G) B) and E)

Question 11

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)  protect an owner from unknown claims on the property.
D)  protect an owner from changes in mortgage interest rates.
E)  cover the closing costs of a real estate transaction.F) B) and D)
G) B) and C)

Question 12

Refinancing of a mortgage is recommended when:

Accepted Answer

A)  interest rates rise.
B)  interest rates fall.
C)  the escrow account balance declines.
D)  two or more points are required by the lender at the time of closing.
E)  the escrow account balance increases.F) A) and C)
G) All of the above

Question 13

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 D)
G) A) and C)

Question 14

Explain what amortization is and how a down payment and loan duration impact it.

Accepted Answer

The answer of Explain what amortization is and how a...

Question 15

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) C) and D)
G) A) and E)

Question 16

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) B) and E)

Question 17

Which of these is a common financial benefit of home ownership?

Accepted Answer

A)  low security deposit
B)  tax deductibility of the down payment
C)  amortization of the equity
D)  increased property value
E)  no maintenance costF) C) and D)
G) C) and E)

Question 18

Prefabricated housing 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 partially assembled in factories.F) B) and E)
G) None of the above

Question 19

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 D)
G) B) and C)

Question 20

Explain how current interest rates can affect the price of a home.

Accepted Answer

Current interest rates can have a signif...

Exam 9: The Housing Decision: Factors and Finances

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

Correct Answer
verified

A common opportunity cost associated with renting is interest lost on money spent for:

Correct Answer
verified

The purpose of title insurance is to:

Correct Answer
verified

Refinancing of a mortgage is recommended when:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Which of these is a common financial benefit of home ownership?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

A is a building that contains exactly two separate homes.

Correct Answer
verified

Most people select a place of residence based on available financial resources,needs,and lifestyle.

Correct Answer
verified

A loan based on the equity of the home that provides the homeowner with tax-free income and which is paid back when the home is sold is called a(an) :

Correct Answer
verified

The assessed value of your home is the:

Correct Answer
verified

Differentiate between a cooperative and a condominium.Be sure to include a discussion of the ownership and responsibility for the common areas.

Correct Answer
verified

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

Correct Answer
verified

Prefabricated housing refers to:

Correct Answer
verified

Explain what amortization is and how a down payment and loan duration impact it.

Correct Answer
verified

What is the name commonly used to refer to the recent national crisis in which with many mortgages were issued to borrowers with poor credit histories,resulting in numerous loan defaults?

Correct Answer
verified

Explain how current interest rates can affect the price of a home.

Correct Answer
Answered by ExamLex AI
Current interest rates can have a signif...
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Exam 9: The Housing Decision: Factors and Finances

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

Correct AnswerverifiedShow Answer

A common opportunity cost associated with renting is interest lost on money spent for:

Correct AnswerverifiedShow Answer

The purpose of title insurance is to:

Correct AnswerverifiedShow Answer

Refinancing of a mortgage is recommended when:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of these is a common financial benefit of home ownership?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A is a building that contains exactly two separate homes.

Correct AnswerverifiedShow Answer

Most people select a place of residence based on available financial resources,needs,and lifestyle.

Correct AnswerverifiedShow Answer

A loan based on the equity of the home that provides the homeowner with tax-free income and which is paid back when the home is sold is called a(an) :

Correct AnswerverifiedShow Answer

The assessed value of your home is the:

Correct AnswerverifiedShow Answer

Differentiate between a cooperative and a condominium.Be sure to include a discussion of the ownership and responsibility for the common areas.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Prefabricated housing refers to:

Correct AnswerverifiedShow Answer

Explain what amortization is and how a down payment and loan duration impact it.

Correct AnswerverifiedShow Answer

What is the name commonly used to refer to the recent national crisis in which with many mortgages were issued to borrowers with poor credit histories,resulting in numerous loan defaults?

Correct AnswerverifiedShow Answer

Explain how current interest rates can affect the price of a home.

Correct AnswerAnswered by ExamLex AICurrent interest rates can have a signif...View AnswerShow Answer

Correct Answer
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Correct Answer
Answered by ExamLex AI
Current interest rates can have a signif...
View Answer