Question 1

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) D) and E)
G) B) and D)

Question 2

Some real estate experts estimate that remodeling a kitchen can add 130 percent of the cost of remodeling to the value of the house.A remodeled kitchen costing $8,000 could add _____ to the value of the house.

Accepted Answer

A)  $4,000
B)  $8,000
C)  $9,600
D)  $10,400
E)  $13,000F) C) and E)
G) C) and D)

Question 3

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

Question 4

A cost associated with renting would be:

Accepted Answer

A)  property insurance.
B)  maintenance costs.
C)  title insurance.
D)  security deposit.
E)  points.F) B) and E)
G) B) and C)

Question 5

A VA-guaranteed loan program provides assistance to:

Accepted Answer

A)  military veterans.
B)  recent college graduates.
C)  low-income homebuyers.
D)  government employees.
E)  the elderly.F) A) and E)
G) C) and D)

Question 6

A condominium involves:

Accepted Answer

A)  renting a mobile home.
B)  buying stock in a nonprofit organization.
C)  ownership of an individual living unit.
D)  government-subsidized housing.
E)  renting a house with the option to buy.F) B) and D)
G) A) and E)

Question 7

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) None of the above
G) C) and D)

Question 8

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 D)
G) A) and B)

Question 9

If closing costs of $1,400 are associated with the refinance of a mortgage that would reduce the monthly payment from $980 to $870,it would take approximately ____ months to cover these costs.

Accepted Answer

A)  6
B)  9
C)  13
D)  17
E)  22F) C) and E)
G) C) and D)

Question 10

What is prepaid interest charged by a mortgage company called?

Accepted Answer

A)  escrow
B)  points
C)  origination fee
D)  title fee
E)  deedF) A) and E)
G) A) and C)

Question 11

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) None of the above
G) A) and D)

Exam 9: The Housing Decision: Factors and Finances

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

Correct Answer
verified

If closing costs of $1,400 are associated with the refinance of a mortgage that would reduce the monthly payment from $980 to $870,it would take approximately ____ months to cover these costs.

Correct Answer
verified

The purpose of a counteroffer is to:

Correct Answer
verified

Some real estate experts estimate that remodeling a kitchen can add 130 percent of the cost of remodeling to the value of the house.A remodeled kitchen costing $8,000 could add _____ to the value of the house.

Correct Answer
verified

What is prepaid interest charged by a mortgage company called?

Correct Answer
verified

A VA-guaranteed loan program provides assistance to:

Correct Answer
verified

Renting would be most appropriate for people who:

Correct Answer
verified

A cost associated with renting would be:

Correct Answer
verified

A condominium involves:

Correct Answer
verified

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

Correct Answer
verified

A conventional mortgage usually involves:

Correct Answer
verified

Exam 9: The Housing Decision: Factors and Finances

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

Correct AnswerverifiedShow Answer

If closing costs of $1,400 are associated with the refinance of a mortgage that would reduce the monthly payment from $980 to $870,it would take approximately ____ months to cover these costs.

Correct AnswerverifiedShow Answer

The purpose of a counteroffer is to:

Correct AnswerverifiedShow Answer

Some real estate experts estimate that remodeling a kitchen can add 130 percent of the cost of remodeling to the value of the house.A remodeled kitchen costing $8,000 could add _____ to the value of the house.

Correct AnswerverifiedShow Answer

What is prepaid interest charged by a mortgage company called?

Correct AnswerverifiedShow Answer

A VA-guaranteed loan program provides assistance to:

Correct AnswerverifiedShow Answer

Renting would be most appropriate for people who:

Correct AnswerverifiedShow Answer

A cost associated with renting would be:

Correct AnswerverifiedShow Answer

A condominium involves:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A conventional mortgage usually involves:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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