Question

All of the following are advantages to living in single-family housing except

Select one:
a. privacy.
b. storage space.
c. being in a residential neighborhood.
d. freedom from maintenance.
Question 3
How might you lower your total loan amount at the time of the closing?
Select one:
a. pay points
b. pay closing costs upfront
c. both a and b
d. neither a nor b
Question 4
How much will your real estate agent probably make if you purchase a house for $249,000 with 10 percent down and she splits the fee equally with the seller’s agent?
Select one:
a. $6,723
b. $7,470
c. $13,446
d. $14,940
Question 5
How much would you pay for 3 points at your closing if you purchase a house for $150,000 with 30 percent down?
Select one:
a. $1,050
b. $1,500
c. $3,150
d. $4,500
Question 6
If you choose to rent rather than buy, you
Select one:
a. are paying only for your occupation of the premises.
b. gain significant tax advantages.
c. can deduct your property tax when filing your income tax return.
d. all of the above
Question 7
Living at home after high school or college can be difficult, so you should probably
Select one:
a. agree to some ground rules with your family right away.
b. plan to come and go as you please.
c. continue relying on your family for financial assistance.
d. all of the above
Question 8
What is the purpose of the Fair Housing Act?
Select one:
a. to provide housing subsidies for lower-income families
b. to protect renters and buyers from discrimination
c. to offer housing at a fair price for everyone
d. to provide different housing services or facilities to certain groups
Question 9
Which of the following affects the total amount you will pay over the life of your mortgage?
Select one:
a. your credit score
b. the lender you choose
c. paying points
d. all of the above
Question 10
Which of the following government agencies or departments will help qualified buyers obtain financing to purchase a home?
Select one:
a. HUD and the FHA
b. the FHA and the VA
c. HUD and the VA
d. HUD, the FHA, and the VA
Question 11
Which of the following might a landlord require when you rent your first apartment?
Select one:
a. personal references
b. a credit application
c. a rental application
d. all of the above
Question 12
Which of the following mortgage options would probably present the least risk for the average American home buyer?
Select one:
a. a 30-year subprime loan
b. an ARM with a beginning interest rate of 2 percent
c. a 20-year fixed-rate mortgage
d. an ARM with a rate cap of 1 percentage point
Question 13
Which of the following types of home ownership could provide you with a place to live and pay for itself at the same time?
Select one:
a. single-family home
b. mobile home
c. duplex
d. condominium
Question 14
Question text
You can rely on a real estate agent to tell you
Select one:
a. the general area in which you should live.
b. how large a home you should buy.
c. how to make an offer on a home.
d. none of the above
Question 15
You will probably enjoy all of the following while living in a dormitory except
Select one:
a. being very close to classroom buildings.
b. the lack of privacy.
c. socializing with other students.
d. having fixed living expenses.
Question 16
Your living arrangement choices after high school might include
Select one:
a. staying with your family.
b. sharing with a roommate.
c. living in a dormitory.
d. all of the above
Question 17
A duplex is not actually built on site but is delivered in sections or all in one piece to the property where it will be located.
Select one:
True
False
Question 18
At the end of the loan term on a balloon mortgage, the buyer will owe a remainder on the principal.
Select one:
True
False
Question 19
By setting up an escrow account with your lender, you can make sure your homeowner’s insurance and property taxes are variable expenses.
Select one:
True
False
Question 20
If you paid 20 percent down on a house selling for $175,000, your principal would be $150,000.
Select one:
True
False
Question 21
In general, apartment dwellers may have less need of an emergency fund for household expenses than homeowners.
Select one:
True
False
Question 22
In most cases, a portion of the payments made on a mortgage goes into the escrow of the home.
Select one:
True
False
Question 23
One drawback to living in an apartment complex is that you will probably have to pay for maintenance of the lobby and hallways.
Select one:
True
False
Question 24
People should spend no more than one-fourth to one-half of their income on housing and related costs.
Select one:
True
False
Question 25
Some people choose to live in single-family housing because they want more privacy than they would get in multifamily housing.
Select one:
True
False
Question 26
The tenant provides the rental agreement when renting a house or an apartment.
Select one:
True
False

Answer 1

• All of the following are advantages to living in single-family housing except

d. freedom from maintenance.

If you live in an apartment, townhouse, or condo, the shared living spaces are generally maintained by the management company, but this is not the case in a single family home.

• How might you lower your total loan amount at the time of the closing?

c. both a and b

Paying points means paying a fee to lower the interest rate, which will reduce the amount you pay over time. While you may have the option of rolling the closing costs into the mortgage, paying them upfront will reduce the principal which will lower the total amount owed.

• How much will your real estate agent probably make if you purchase a house for $249,000 with 10 percent down and she splits the fee equally with the seller’s agent?

b. $7,470

Typical realtor fees are 6%, so 6%*249,000 = 14,940. If this is split in half with the seller's agent the amount is $7470

• How much would you pay for 3 points at your closing if you purchase a house for $150,000 with 30 percent down?

c. $3,150

One point costs 1% of the mortgage amount. Mortgage amount= price of house - down payment. (150,000 - (.3 * 150,000))

150,000- 45,000 = $105,000

3 points would be 3% of $105,000 (.03 *105,000) = $3,150

• If you choose to rent rather than buy, you

a. are paying only for your occupation of the premises.

When you rent, you are not paying for any potential equity like you would be with a home.