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 and one-half
B.   1
C.   2
D.   one-half of
Question #2
The tax deductible expenses related to home ownership are
A.   mortgage interest and property taxes
B.     
C.   homeowner's insurance and property taxes
D.   home improvements and mortgage interest
E.   homeowner's insurance and home improvements
Question #3
___________ insurance is generally required when a borrower makes a small or no down payment.
A.   Mortgage
B.   Title
C.   Homeowner's
D.   Liability
Question #4
____________ is (are) generally part of the monthly house payment.
A.   Homeowner's insurance premium
B.   All of these
C.   Principal and interest
D.   Real estate property taxes
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.   equity-to-liability
D.   assets-to-debt
Question #6
Prospective renters need to consider
A.   the lease agreement and restrictions
B.   all of these
C.   the tenant rights
D.   the amount of rent and related expenses
Question #7
The PITI acronym in mortgage lending stands for
A.   principal, interest, taxes and investment
B.   principal, investment, taxes, and interest.
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.   a manufactured hom
D.   both a cooperative and a condominium
Question #9
Which of the following characteristics would cause a person to prefer renting over buying housing?
A.   Large amount of funds available for front-end expenses
B.   Unknown job stability in the geographical area
C.   all of these
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.   Underwater
C.   Foreclosure auction
D.   Short sale

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