FCS 323 - Family and Individual Money Management » Spring 2022 » Chapters 9 Quiz

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Question #1
A point, as defined in the real estate market, is _________ percent of the loan amount.
A.   1
B.   one-half of
C.   1 and one-half
D.   2
Question #2
The tax deductible expenses related to home ownership are
A.   homeowner's insurance and property taxes
B.   mortgage interest and property taxes
C.   homeowner's insurance and home improvements
D.   home improvements and mortgage interest
E.     
Question #3
___________ insurance is generally required when a borrower makes a small or no down payment.
A.   Title
B.   Liability
C.   Mortgage
D.   Homeowner's
Question #4
____________ is (are) generally part of the monthly house payment.
A.   Real estate property taxes
B.   All of these
C.   Principal and interest
D.   Homeowner's insurance premium
Question #5
Lenders use _______ ratios when setting limits on how much a home buyer can borrow.
A.   only front-end
B.   front-end and back-end
C.   assets-to-debt
D.   equity-to-liability
Question #6
Prospective renters need to consider
A.   the amount of rent and related expenses
B.   the tenant rights
C.   the lease agreement and restrictions
D.   all of these
Question #7
The PITI acronym in mortgage lending stands for
A.   principal, investment, taxes, and interest.
B.   principal, interest, taxes and investment
C.   principal, insurance, taxes and interest.
D.   principal, interest, taxes, and insurance
Question #8
A form of housing ownership where the owner holds legal title to a specific housing unit and a proportionate interest in the common grounds and facilities is
A.   a cooperative
B.   a condominium
C.   both a cooperative and a condominium
D.   a manufactured hom
Question #9
Which of the following characteristics would cause a person to prefer renting over buying housing?
A.   all of these
B.   Unknown job stability in the geographical area
C.   Large amount of funds available for front-end expenses
D.   Enjoying the responsibilities of home maintenance
Question #10
Which of the following steps in the foreclosure process is typically when the home sells for the lowest amount?
A.   Preforeclosure
B.   Foreclosure auction
C.   Short sale
D.   Underwater

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