Question 1

Which one of these situations creates negative amortization?

Accepted Answer

A)  Increasing the amount of the monthly mortgage payment
B)  Paying less than the monthly interest on a mortgage
C)  Decreasing the amount paid into an escrow account
D)  Lowering the mortgage interest rate
E)  Decreasing the amount of the down paymentF) A) and E)
G) A) and B)

Question 2

Multi unit dwellings include:

Accepted Answer

A)  a cooperative.
B)  a mobile home.
C)  a manufactured home.
D)  a townhouse.
E)  a condominium.F) B) and C)
G) A) and B)

Question 3

Which one of the following is an advantage of renting?

Accepted Answer

A)  Unrestricted lifestyle
B)  Tax benefits
C)  Fewer responsibilities
D)  Increased value of real estate
E)  Increased maintenance costsF) A) and D)
G) A) and C)

Question 4

Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site.What type of housing is Jennifer purchasing?

Accepted Answer

A)  Condominium
B)  Duplex
C)  Cooperative
D)  Prefabricated home
E)  PenthouseF) A) and B)
G) D) and E)

Question 5

Which type of home has a tendency to depreciate in value?

Accepted Answer

A)  Cooperative
B)  Mobile home
C)  Condominium
D)  Duplex
E)  Previously-owned single family homeF) A) and B)
G) C) and E)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Real estate professionals believe that location is the most important factor to consider when selecting a home.

Accepted Answer

A) True 
 B)False

Question 8

A home worth $200,000 with $120,000 still owed on the mortgage would have equity of $80,000,which is ____ percent of the home's value.

Accepted Answer

A)  20%
B)  40%
C)  60%
D)  67%
E)  80%F) B) and C)
G) A) and E)

Question 9

One service provided by a real estate agent when selling your home is:

Accepted Answer

A)  providing legal advice.
B)  completing a mortgage application.
C)  screening potential buyers.
D)  making needed repairs.
E)  conducting a home inspection.F) All of the above
G) D) and E)

Question 10

Which procedure is a security measure if you are selling your home without a real estate professional?

Accepted Answer

A)  Closing the drapes when showing your home
B)  Turning off the lights when showing your home
C)  Showing your home only when two or more adults are at home
D)  Clearing the garage of clutter before showing your home
E)  Mowing the lawn before showing your homeF) A) and E)
G) B) and C)

Question 11

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) None of the above

Question 12

What factors influence the type of housing a family will select?

Accepted Answer

Selection of housing is influe...

Question 13

A cost associated with renting would be:

Accepted Answer

A)  property insurance.
B)  property taxes.
C)  down payment and closing costs.
D)  security deposit.
E)  mortgage interest.F) A) and E)
G) C) and D)

Question 14

A contract condition that states that the agreement is binding only if a certain event occurs is a:

Accepted Answer

A)  dual agency.
B)  contingency clause.
C)  counteroffer.
D)  zoning law.
E)  prefabrication.F) D) and E)
G) C) and D)

Question 15

The purpose of zoning laws is to:

Accepted Answer

A)  restrict property use.
B)  encourage new housing development.
C)  minimize people moving from an area.
D)  reduce real estate property taxes.
E)  assist real estate agents in finding homes for sale.F) A) and E)
G) C) and D)

Question 16

A deed is the document that transfers ownership of the property from one party to another.

Accepted Answer

A) True 
 B)False

Question 17

Condominiums involve the purchase of an individual housing unit in a building rather than an entire building.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following serves as collateral for the mortgage?

Accepted Answer

A)  Your income
B)  The amount of your down payment
C)  The length of your loan
D)  Current mortgage rates
E)  The home you buyF) A) and D)
G) D) and E)

Question 19

Renting is more advantageous than buying a home when you are seeking:

Accepted Answer

A)  lower living costs in the short run.
B)  fewer restrictions regarding remodeling.
C)  a long-term investment.
D)  tax deductions for property taxes.
E)  permanence of residence.F) A) and B)
G) C) and D)

Question 20

A common cost associated with renting is:

Accepted Answer

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

Exam 9: The Housing Decision: Factors and Finances

A deed is the document that transfers ownership of the property from one party to another.

Correct Answer
verified

A contract condition that states that the agreement is binding only if a certain event occurs is a:

Correct Answer
verified

Real estate professionals believe that location is the most important factor to consider when selecting a home.

Correct Answer
verified

Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site.What type of housing is Jennifer purchasing?

Correct Answer
verified

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

Correct Answer
verified

The purpose of zoning laws is to:

Correct Answer
verified

A common cost associated with renting is:

Correct Answer
verified

One service provided by a real estate agent when selling your home is:

Correct Answer
verified

Which type of home has a tendency to depreciate in value?

Correct Answer
verified

Multi unit dwellings include:

Correct Answer
verified

Correct Answer
verified

Which one of the following is an advantage of renting?

Correct Answer
verified

A home worth $200,000 with $120,000 still owed on the mortgage would have equity of $80,000,which is ____ percent of the home's value.

Correct Answer
verified

Renting is more advantageous than buying a home when you are seeking:

Correct Answer
verified

A cost associated with renting would be:

Correct Answer
verified

Which procedure is a security measure if you are selling your home without a real estate professional?

Correct Answer
verified

Which of the following serves as collateral for the mortgage?

Correct Answer
verified

Condominiums involve the purchase of an individual housing unit in a building rather than an entire building.

Correct Answer
verified

Which one of these situations creates negative amortization?

Correct Answer
verified

What factors influence the type of housing a family will select?

Correct Answer
verified
Selection of housing is influe...
View Answer

Exam 9: The Housing Decision: Factors and Finances

A deed is the document that transfers ownership of the property from one party to another.

Correct AnswerverifiedShow Answer

A contract condition that states that the agreement is binding only if a certain event occurs is a:

Correct AnswerverifiedShow Answer

Real estate professionals believe that location is the most important factor to consider when selecting a home.

Correct AnswerverifiedShow Answer

Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site.What type of housing is Jennifer purchasing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The purpose of zoning laws is to:

Correct AnswerverifiedShow Answer

A common cost associated with renting is:

Correct AnswerverifiedShow Answer

One service provided by a real estate agent when selling your home is:

Correct AnswerverifiedShow Answer

Which type of home has a tendency to depreciate in value?

Correct AnswerverifiedShow Answer

Multi unit dwellings include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which one of the following is an advantage of renting?

Correct AnswerverifiedShow Answer

A home worth $200,000 with $120,000 still owed on the mortgage would have equity of $80,000,which is ____ percent of the home's value.

Correct AnswerverifiedShow Answer

Renting is more advantageous than buying a home when you are seeking:

Correct AnswerverifiedShow Answer

A cost associated with renting would be:

Correct AnswerverifiedShow Answer

Which procedure is a security measure if you are selling your home without a real estate professional?

Correct AnswerverifiedShow Answer

Which of the following serves as collateral for the mortgage?

Correct AnswerverifiedShow Answer

Condominiums involve the purchase of an individual housing unit in a building rather than an entire building.

Correct AnswerverifiedShow Answer

Which one of these situations creates negative amortization?

Correct AnswerverifiedShow Answer

What factors influence the type of housing a family will select?

Correct AnswerverifiedSelection of housing is influe...View AnswerShow Answer

Correct Answer
verified

Correct Answer
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verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Selection of housing is influe...
View Answer