Chp 12 Housing Decisions Review

Multiple Select

Which of the following are advantages of leasing?

(Select all that apply)

• Someone else pays for repairs

• Flexibility to move

• No investment

• Cheaper expenses

Multiple Choice

Which of the following is a disadvantage of renting a residence?

• greater financial risk

• less mobility

• no investment benefits

• less free time

Multiple Choice

A legal contract between the tenant and landlord outlining the rights and responsibilities of both parties.

• mortgage

• lease

• down payment

• value

Multiple Choice

The person who owns a property and rents it out to other people.

• Tenant

• Securer

• Lease

• Lessor/ Landlord

Multiple Choice

The person or party who rents a property.

• Landlord

• Lessee

• Purchaser

• Securer

Multiple Choice

An amount a renter pays to help protect the property owner against financial losses in case the renter damages the property or fails to pay rent is a(n) ___________.

• Security Deposit

• Down payment

• Loan

• Mortgage Insurance

Multiple Choice

This occurs when the tenant does not voluntarily move out after the landlord has given the notice to vacate the property.

• Subleasing

• Eviction

• Oral agreement

• Lease agreement

Multiple Choice

Approximately ______ of a person's income is spent on housing.

• 1/3

• 1/2

• 1/4

• 1/5

Multiple Choice

The difference between what one owes on a mortgage and the market value of the home is called

• collateral

• equity

• profit

• value

Multiple Choice

Which of the following is an advantage of home ownership?

• greater financial risk

• tax benefits

• less mobility

• less free time

Multiple Choice

What is the price a seller wishes to receive from the sale of the property called?

• market value

• asking price

• selling price

• assessed value

Multiple Choice

The ________________ is the price at which something can be bought or sold at a given point in time.

• Market value

• Selling price

• Asking price

• Assessed value

Multiple Choice

For most offers on property, there is usually some _____ between the buyer and seller.

• tension

• negotiation

• animosity

• manipulation

Multiple Choice

Contract between a homebuyer and a seller that includes a description of the real estate, its location, the purchase price, the possession date, and any other conditions and terms of the sale.

• Contingency clause

• Purchase agreement

• Market value

• Negotiations

Multiple Choice

Which of the following is an example of a common contingency clause in a purchase agreement?

• Agreement depends on the seller’s willingness to lower the asking price.

• Agreement depends on the buyer’s willingness to pay closing costs.

• Agreement dependent upon the home inspection.

• Agreement depends on the buyers not finding and buying another home.

Multiple Choice

To show that an offer to purchase a home is serious, the agent will require _____________.

• a rental agreement

• a handshake

• earnest money

• a security deposit

Multiple Choice

Type of secured loan used for buying property.

• Credit card

• Mortgage

• Payday loan

• Title loan

Multiple Choice

What is the purpose of mortgage preapproval?

• Getting preapproved gives you access to money to be used for a down payment.

• Getting preapproved shows a seller that you’re a serious homebuyer that can secure a

  mortgage

• Getting preapproved helps increase your credit score so that when you apply for a

  mortgage you can get the best rates

• Getting preapproved puts you first in line to buy a house if you choose to make an

  offer

Multiple Choice

What are the four factors that dictate the amount of a monthly mortgage payment:

• proterty taxes, homeowners insurance, closing costs and utilities

• term of the loan, credit score, interest rate and home price

• size of the mortgage, closing costs, interest rate, and term of the loan

• size of the mortgage, down payment, interest rate, and term of the loan

Multiple Choice

When is private mortgage insurance (PMI) required?

• When the loan’s monthly payment is more than 10% of the borrower’s monthly

  income.

• When the loan’s monthly payment is more than 25% of the borrower’s monthly

  income.

• If borrower has a down payment of less than 30% of the purchase price.

• If borrower has a down payment of less than 20% of the purchase price.

Multiple Choice

A(n) __________________ is a written estimate of the value of the real estate.

• closing costs

• mortgage payment

• homeowners insurance

• appraisal

Multiple Choice

Fee or settlement charge that must be paid before the sale of a home is final.

• closing costs

• mortgage payment

• rent

• homeowners insurance

Multiple Choice

What is an escrow account?

• Hold money in a trust for others, for things like property taxes and homeowners insurance.

• Hold money you are saving for your down payment.

• A mortgage that doesn't charge you interest.

• A type of car loan.