Real Estate Unit 12 Quiz

What are some factors to consider when deciding to buy or rent property?

• Length of stay, financial situation, housing affordability

• Weather conditions, local cuisine, nearby schools

• Proximity to shopping malls, nightlife, public transport

• Local sports teams, cultural events, historical sites

What is mortgage fraud?

• Exaggerating income or assets, minimizing debt, false employment history

• Paying off a mortgage early

• Applying for multiple loans at once

• Using a mortgage for business purposes

What does PITI stand for in home ownership expenses?

• Principal, Interest, Taxes, Insurance

• Property, Investment, Taxes, Income

• Payment, Interest, Taxes, Insurance

• Principal, Investment, Taxes, Income

Which organizations provide free credit reports in the United States?

• Equifax, Experian, TransUnion

• Federal Reserve, IRS, Treasury Department

• Google, Amazon, Facebook

• State Department, Homeland Security, FBI

What is a credit score based on?

• Consumer's past history of credit use

• Consumer's age

• Consumer's education level

• Consumer's marital status

What is the range of the FICO® Score?

• 200 to 800

• 300 to 850

• 400 to 900

• 250 to 750

What percentage of the purchase price is a homebuyer expected to provide as a down payment?

• At least 5%

• At least 10%

• At least 15%

• At least 20%

What is the maximum percentage of gross monthly income that can be used for a monthly PITI payment?

• 20%

• 25%

• 28%

• 30%

What does LTV stand for in real estate financing?

• Loan-to-value ratio

• Loan-to-vehicle ratio

• Lease-to-value ratio

• Lease-to-vehicle ratio

What is a promissory note?

• A borrower's personal promise to repay a debt

• A type of insurance policy

• A legal document for property ownership

• A contract for employment