Question 1

Duane Miller wants to know what price home he can afford.His annual gross income is $60,000.He has no other debt expenses and expects property taxes and insurance to cost $400 per month.He knows he can get a 6%,15 year mortgage so his mortgage payment factor is 8.43.He expects to make a 10% down payment.What is Duane's affordable home purchase price? Round your answer to the nearest $100.

Accepted Answer

A)  $148,300
B)  $177,900
C)  $164,800
D)  $197,700
E)  $1,483,000

Question 2

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

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 transaction

Question 3

Todd Foley is applying for a $100,000 mortgage.He can select either a $600 monthly payment with no points or a $ 520 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

Accepted Answer

A)  6
B)  10
C)  18
D)  25
E)  48

Question 4

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.

Question 5

A home worth $300,000 with $180,000 still owed on the mortgage would have equity of:

Accepted Answer

A)  $300,000
B)  $180,000
C)  $120,000
D)  $100,000
E)  $80,000

Question 6

Home improvements may or may not increase the selling price of the home.

Accepted Answer

A) True 
 B)False

Question 7

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. B

Question 8

A major expense associated with home ownership would be:

Accepted Answer

A)  renter's insurance.
B)  the security deposit.
C)  increased value of the property.
D)  real estate taxes.
E)  interest lost on the security deposit.

Question 9

A real estate short sale occurs when:

Accepted Answer

A)  you are selling the home without a real estate professional.
B)  an appraisal is too costly to obtain.
C)  an estimate of the current value of the property is not available.
D)  the new selling price is less than the amount owed on a previous mortgage.
E)  the home is sold for less than the list price.

Question 10

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.

Question 11

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-down D

Question 12

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

Accepted Answer

Amortization is the reduction of a loan ...

Question 13

Gary Smith is purchasing one housing unit in a building with several units.What type of housing is Gary most likely going to live in?

Accepted Answer

A)  Condominium
B)  Duplex
C)  Cooperative
D)  Prefabricated home
E)  Mobile home

Question 14

Which one of the following is an advantage of buying?

Accepted Answer

A)  Ease of Mobility
B)  Financial benefits
C)  Fewer responsibilities
D)  Minimal financial commitment
E)  Declining equity

Question 15

John Ashford needs to sell his home because of a job transfer to another city.What actions should John take to prepare his home for selling?

Accepted Answer

When selling a home,you should first pre...

Question 16

What is the most popular form of housing?

Accepted Answer

A)  Condominium
B)  Duplex
C)  Cooperative
D)  Prefabricated home
E)  Single-family dwelling

Question 17

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

Accepted Answer

A)  Home inspection fees
B)  Moving expenses
C)  Earnest money
D)  Title insurance
E)  Down payment

Question 18

Property taxes are based on the assessed value.Who determines this value and what can you do if you disagree with this assessment?

Accepted Answer

The assessed value is the amount that your local government determines your property to be worth for tax purposes.If you disagree with this assessment,you can take the following actions:
1.Know the appeal deadline.Contact the local assessor's office.
2.Check for mistakes,such as reporting incorrect square footage or incorrectly stating the number of bedrooms.
3.Determine the issues to emphasize.Note items that might affect the value of your home versus comparable homes in your area.
4.Prepare for the hearing.Gather evidence and prepare an organized presentation with photos and spreadsheets.

Question 19

The amount of the down payment will affect the size of the mortgage loan needed to purchase a home.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  Low security deposit
B)  Tax deductibility of the down payment
C)  Lifestyle flexibility
D)  Increases in property value
E)  No maintenance cost

Exam 9: The Housing Decision: Factors and Finances

Correct Answer
verified

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

Correct Answer
verified

Todd Foley is applying for a $100,000 mortgage.He can select either a $600 monthly payment with no points or a $ 520 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

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

A home worth $300,000 with $180,000 still owed on the mortgage would have equity of:

Correct Answer
verified

Home improvements may or may not increase the selling price of the home.

Correct Answer
verified

Refinancing of a mortgage is recommended when:

Correct Answer
verified
B

A major expense associated with home ownership would be:

Correct Answer
verified

A real estate short sale occurs when:

Correct Answer
verified

The appraised value of your home is the:

Correct Answer
verified

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

Correct Answer
verified
D

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

Correct Answer
verified
Amortization is the reduction of a loan ...
View Answer

Gary Smith is purchasing one housing unit in a building with several units.What type of housing is Gary most likely going to live in?

Correct Answer
verified

Which one of the following is an advantage of buying?

Correct Answer
verified

John Ashford needs to sell his home because of a job transfer to another city.What actions should John take to prepare his home for selling?

Correct Answer
verified
When selling a home,you should first pre...
View Answer

What is the most popular form of housing?

Correct Answer
verified

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

Correct Answer
verified

Property taxes are based on the assessed value.Who determines this value and what can you do if you disagree with this assessment?

The amount of the down payment will affect the size of the mortgage loan needed to purchase a home.

Correct Answer
verified

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

Correct Answer
verified

Exam 9: The Housing Decision: Factors and Finances

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Todd Foley is applying for a $100,000 mortgage.He can select either a $600 monthly payment with no points or a $ 520 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

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

A home worth $300,000 with $180,000 still owed on the mortgage would have equity of:

Correct AnswerverifiedShow Answer

Home improvements may or may not increase the selling price of the home.

Correct AnswerverifiedShow Answer

Refinancing of a mortgage is recommended when:

Correct AnswerverifiedB

A major expense associated with home ownership would be:

Correct AnswerverifiedShow Answer

A real estate short sale occurs when:

Correct AnswerverifiedShow Answer

The appraised value of your home is the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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

Correct AnswerverifiedAmortization is the reduction of a loan ...View AnswerShow Answer

Gary Smith is purchasing one housing unit in a building with several units.What type of housing is Gary most likely going to live in?

Correct AnswerverifiedShow Answer

Which one of the following is an advantage of buying?

Correct AnswerverifiedShow Answer

John Ashford needs to sell his home because of a job transfer to another city.What actions should John take to prepare his home for selling?

Correct AnswerverifiedWhen selling a home,you should first pre...View AnswerShow Answer

What is the most popular form of housing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Property taxes are based on the assessed value.Who determines this value and what can you do if you disagree with this assessment?

The amount of the down payment will affect the size of the mortgage loan needed to purchase a home.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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B

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D

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Amortization is the reduction of a loan ...
View Answer

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Correct Answer
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Correct Answer
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When selling a home,you should first pre...
View Answer

Correct Answer
verified

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Correct Answer
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