• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/49

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

49 Cards in this Set

  • Front
  • Back
Renting is more advantageous than buying a home for
lower short-term living costs
A common opportunity cost associated with renting is
interest lost on security deposit
Renting would be most appropriate for people who
have limited funds currently available
Belinda plans to rent instead of buying her house. What advantage of renting will Belinda encounter
lower initial costs
The main financial benefit of renting is
lower initial costs
If you decide to purchase a condo for potential benefits you are probably
young single
A lease always gives the landloard the right to
take legal action against a tenant for non-payment of rent
What is the purpose of subletting an apartment?
to obtain another tenant to complete a lease period
Which of the following is typically excluded from a lease agreement?
the penalty for missing rental payments
Which of the following are disadvantages of home ownership?
limited mobility
A coorperative housing arrangement involves
a nonprofit organization
Brian rents a living unit as a result of his membership in a nonprofit housing organization. What name is commonly used for this type of housing?
cooperative housing
A common financial benefit to home ownership is
increased property value
Which of the following is not a common financial risk in home ownership
capital gains taxes on the sale of a principal residence
Which of the following would increase the amount that a person could afford to spend on a home?
lower financial obligations
The most commonly considered factor when selecting a home is the
location of the home
As William conducts an investigation of property value factors, most real estate experts tell him that ________ most influences the housing values in an area
quality of schools
The purpose of zoning laws is to
restrictions on property use
The gross debt service ratio measure
your monthly mortgage payment, including principal, interest, heating, and taxes as a percentage of gross monthly income
A real estate agent can best assist a homebuyer by
assisting you in obtaining financing
The purpose of a counteroffer is to
negotiate the purchase price
At the closing of home purchase, the “earnest” money has the purpose of
serving as evidence of serious intent
The amount of mortgage a person is eligible for would be increased by
lower interest rates
Which of the following would increase the speed of equity growth for a homebuyer?
obtaining a 15 year mortgage instead of a 30 year mortgage
A conventional mortgage usually involves
equal payments
Which of the following is an example of conventional mortgage?
a fixed rate mortgage
The purpose of a rate cap with a variable rate mortgage is to
restrict the amount by which the interest rate can increase
Negative amortization has the effect of:
extending the number of payments to pay off the mortgage
A home equity loan is also referred to as a ___________ mortgage
second
Refinancing of a mortgage is recommended when
interest rates fall
Which of the following is an example of closing out?
title insurance
The purpose of title insurance is to
guarantee the boundaries of the property
A cost associated with home buying would be
appraisal and property taxes
Which document is used to transfer ownership from one party to another?
Deed
Which of the following expenses is paid from an escrow account
property insurance
The purpose of an appraisal is to
estimate the current value of a home
If you sell your home without the use of a real estate agent, you should still make use of a
lawyer
The most common service provided by a real estate agent when selling your home is
screening potential buyers
Lenders commonly use a TDS ratio of __ and a GDS ratio of __ to help determine the amount most people can comfortable afford housing
40%;20%
Renting is more advantageous than buying a home for
minimal financial commitment
Renting would be most appropriate for people who
own a variety of pets
The main financial benefit of owning is
investment value growth
Which of the following are advantageous of home ownership?
financial commitment
Which of the following would increase the amount that a person could afford to spend on a home
decreased interest rates
The amount of mortgage a person is eligible for would be increased by
a larger down payment
Which of the following would increase the speed of equity growth for a homebuyer
obtaining a 20 year mortgage instead of a 25-year mortgage
Which of the following wouldl increase the speed of equity growth for a homebuyer?
obtaining a mortgage interest rate of 7% instead of 8%
Approx.. ___ % of mortgages issued in the united states to sub-prime borrowers were adjustable-rate mortgages
80%
Which of the following is an example of closing cost?
deed recording fee