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.   one-half of
D.   2
Question #2
The tax deductible expenses related to home ownership are
A.     
B.   homeowner's insurance and home improvements
C.   home improvements and mortgage interest
D.   homeowner's insurance and property taxes
E.   mortgage interest and property taxes
Question #3
___________ insurance is generally required when a borrower makes a small or no down payment.
A.   Homeowner's
B.   Liability
C.   Mortgage
D.   Title
Question #4
____________ is (are) generally part of the monthly house payment.
A.   Principal and interest
B.   All of these
C.   Real estate property taxes
D.   Homeowner's insurance premium
Question #5
Lenders use _______ ratios when setting limits on how much a home buyer can borrow.
A.   assets-to-debt
B.   equity-to-liability
C.   front-end and back-end
D.   only front-end
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, investment, taxes, and interest.
B.   principal, insurance, taxes and interest.
C.   principal, interest, taxes and investment
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 manufactured hom
B.   a condominium
C.   both a cooperative and a condominium
D.   a cooperative
Question #9
Which of the following characteristics would cause a person to prefer renting over buying housing?
A.   Unknown job stability in the geographical area
B.   all of these
C.   Enjoying the responsibilities of home maintenance
D.   Large amount of funds available for front-end expenses
Question #10
Which of the following steps in the foreclosure process is typically when the home sells for the lowest amount?
A.   Underwater
B.   Foreclosure auction
C.   Preforeclosure
D.   Short sale

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