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.   2
C.   one-half of
D.   1
Question #2
The tax deductible expenses related to home ownership are
A.   home improvements and mortgage interest
B.   mortgage interest and property taxes
C.   homeowner's insurance and property taxes
D.   homeowner's insurance and home improvements
E.     
Question #3
___________ insurance is generally required when a borrower makes a small or no down payment.
A.   Homeowner's
B.   Mortgage
C.   Title
D.   Liability
Question #4
____________ is (are) generally part of the monthly house payment.
A.   Homeowner's insurance premium
B.   Principal and interest
C.   Real estate property taxes
D.   All of these
Question #5
Lenders use _______ ratios when setting limits on how much a home buyer can borrow.
A.   only front-end
B.   assets-to-debt
C.   front-end and back-end
D.   equity-to-liability
Question #6
Prospective renters need to consider
A.   all of these
B.   the tenant rights
C.   the amount of rent and related expenses
D.   the lease agreement and restrictions
Question #7
The PITI acronym in mortgage lending stands for
A.   principal, investment, taxes, and interest.
B.   principal, insurance, taxes and interest.
C.   principal, interest, taxes, and insurance
D.   principal, interest, taxes and investment
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 condominium
B.   a manufactured hom
C.   a cooperative
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.   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.   Short sale
C.   Foreclosure auction
D.   Underwater

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