Question 1

One significant drawback of home ownership is financial uncertainty.

Accepted Answer

A) True 
 B)False

Question 2

Opportunity costs of housing can refer to time and effort involved in finding and repairing a place to live along with lost interest earnings on security deposits and down payments.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of zoning laws is to

Accepted Answer

A)   restrictions on 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) B) and E)

Question 4

If you sell your home without the use of a real estate agent,you should still make use of a

Accepted Answer

A)   broker.
B)   insurance agent.
C)   lawyer.
D)   contractor.
E)   rental agent.F) B) and E)
G) B) and C)

Question 5

The most common service provided by a real estate agent when selling your home is

Accepted Answer

A)   providing legal advice.
B)   qualifying buyers for a mortgage.
C)   screening potential buyers.
D)   making needed repairs.
E)   getting you the lowest offerF) B) and D)
G) None of the above

Question 6

If you decide to purchase a condominium for potential benefits you are probably:

Accepted Answer

A)   single parent.
B)   young couple,no children.
C)   couple,young children
D)   young single
E)   retired person.F) All of the above
G) A) and E)

Question 7

A lease does not protect tenants from rent increases during the term of the lease.

Accepted Answer

A) True 
 B)False

Question 8

Belinda Williams plans to rent instead of buying her house.What advantage of renting will Belinda encounter?

Accepted Answer

A)   tax advantages
B)   financial benefits
C)   community pride
D)   lower initial costs
E)   home improvement flexibilityF) A) and D)
G) A) and C)

Question 9

The amount of mortgage a person is eligible for would be increased by

Accepted Answer

A)   higher interest rates.
B)   a lower down payment.
C)   high debt obligations.
D)   a low family income.
E)   lower interest rates.F) A) and D)
G) A) and E)

Question 10

Ease of mobility is an advantage of renting.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   shared appreciation
B)   graduated payment
C)   growing equity
D)   second
E)   buy downF) D) and E)
G) C) and E)

Question 12

Financial guidelines suggest that you should "spend no more than 10 to 20 percent of your take home pay on housing".

Accepted Answer

A) True 
 B)False

Question 13

Brian Pittman rents a living unit as a result of his membership in a nonprofit housing organization.What name is commonly used for this type of housing?

Accepted Answer

A)   modular housing
B)   government-subsidized housing
C)   zoned housing
D)   a condominium
E)   cooperative housingF) B) and C)
G) C) and E)

Question 14

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

Question 15

What is the purpose of subletting an apartment?

Accepted Answer

A)   to increase the rent
B)   to lower maintenance costs
C)   to convert the units to condominiums
D)   to meet certain government housing regulations
E)   to obtain another tenant to complete a lease periodF) A) and E)
G) A) and B)

Question 16

A lease only protects the rights of the tenant.

Accepted Answer

A) True 
 B)False

Question 17

Many people believe that location is the most important factor to consider when selecting a home.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is typically excluded from a lease agreement?

Accepted Answer

A)   the conditions under which the landlord may enter the apartment.
B)   the tenant's right to sublet the rental unit.
C)   A list of utilities,appliances etc that are included in the rental amount.
D)   the penalty for missing rental payments.
E)   restrictions regarding specific activities (e.g.remodeling) .F) All of the above
G) C) and D)

Question 19

Home improvements may contribute more to the value of the home than the cost of the renovations.

Accepted Answer

A) True 
 B)False

Question 20

Negotiating a purchase price for a home usually involves an offer and counteroffers.

Accepted Answer

A) True 
 B)False

Exam 7: Selecting and Financing Housing

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

Correct AnswerverifiedShow Answer

If you sell your home without the use of a real estate agent,you should still make use of a

Correct AnswerverifiedShow Answer

Ease of mobility is an advantage of renting.

Correct AnswerverifiedShow Answer

Which of the following is typically excluded from a lease agreement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If you decide to purchase a condominium for potential benefits you are probably:

Correct AnswerverifiedShow Answer

The most common service provided by a real estate agent when selling your home is

Correct AnswerverifiedShow Answer

Opportunity costs of housing can refer to time and effort involved in finding and repairing a place to live along with lost interest earnings on security deposits and down payments.

Correct AnswerverifiedShow Answer

One significant drawback of home ownership is financial uncertainty.

Correct AnswerverifiedShow Answer

Home improvements may contribute more to the value of the home than the cost of the renovations.

Correct AnswerverifiedShow Answer

A lease only protects the rights of the tenant.

Correct AnswerverifiedShow Answer

What is the purpose of subletting an apartment?

Correct AnswerverifiedShow Answer

Negotiating a purchase price for a home usually involves an offer and counteroffers.

Correct AnswerverifiedShow Answer

The amount of mortgage a person is eligible for would be increased by

Correct AnswerverifiedShow Answer

Financial guidelines suggest that you should "spend no more than 10 to 20 percent of your take home pay on housing".

Correct AnswerverifiedShow Answer

Belinda Williams plans to rent instead of buying her house.What advantage of renting will Belinda encounter?

Correct AnswerverifiedShow Answer

A lease does not protect tenants from rent increases during the term of the lease.

Correct AnswerverifiedShow Answer

The purpose of zoning laws is to

Correct AnswerverifiedShow Answer

Many people believe that location is the most important factor to consider when selecting a home.

Correct AnswerverifiedShow Answer

Brian Pittman rents a living unit as a result of his membership in a nonprofit housing organization.What name is commonly used for this type of housing?

Correct AnswerverifiedShow Answer

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