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Exam 9: The Housing Decision: Factors and Finances

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Question 1

True/False

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The amount of the down payment will affect the amount of the monthly mortgage needed to purchase a home.

A) True
B) False

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Question 2

Multiple Choice

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Ownership of an individual housing unit in a building is commonly called:

A) a cooperative.
B) modular housing.
C) manufactured housing.
D) a condominium.
E) zoned housing.

F) A) and E)
G) C) and D)

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Question 3

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What does it mean to sublet an apartment?

Prepaid interest may be a part of a mortgage agreement.

Jennifer Garland is purchasing a home that was assembled in a factory and then moved to the living site.What type of housing is Jennifer purchasing?

Condominiums involve the purchase of an individual living unit rather than an entire building.

What is the most popular type of home ownership?

Earnest money is used:

Which one of the following is an advantage of buying?

Many people believe that location is the most important factor to consider when selecting a home.

A contract condition that states that the agreement is binding only if a certain event occurs is a(n) :

Renting is more advantageous than buying a home when you are seeking:

A newly married couple is having trouble affording a home.What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?

Duane Miller wants to know what price home he can afford.His annual gross income is $60,000.He has no other debt expenses and expects property taxes and insurance to cost $400 per month.He knows he can get a 6%,15year mortgage so his mortgage payment factor is 8.43.He expects to make a 10% down payment.What is Duane's affordable home purchase price? Round your answer to the nearest $100.

A lease protects the rights of both the tenant and the landlord.

A balloon mortgage can help a homebuyer when interest rates are high but are expected to come down in the near future.

Todd Foley is applying for a $100,000 mortgage.He can select either a $600 monthly payment with no points or a $520 payment with two points.How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?

Negotiating a purchase price for a home usually involves an offer and counteroffers.

Which of the following is an example of a closing cost?

What factors influence the type of housing a family will select?