Chapter 7 HW Quiz

Which of the following is a form of housing in which the owners pay a monthly fee for maintenance of the common areas? - Condominium - Cooperative housing - Manufactured home - Single-family dwelling - Apartment

- Condominium

Frank and Diane want to buy a house. Which of the following do they need before they purchase a house? - Down payment. - Renter's insurance. - Mortgage interest. - Mortgage principal. - Handyman

- Down payment.

A legal document that includes information about the due date of monthly rent is called a - Lease. - Lessee. - Lessor. - Rental statement. - Sublease.

- Lease.

Which of the following is NOT correct? - Renting is usually less costly in the short run. - Home ownership usually has long-term financial advantages. - Lifestyle and financial factors should be analyzed to determine if you should rent or buy. - Traditional financial guidelines suggest that your home should cost about five times your annual income. - Renting offers mobility.

- Traditional financial guidelines suggest that your home should cost about five times your annual income.

As a result of being an armed services veteran, Dan should be eligible for a(n) - ARM. - FHA loan. - Negative amortization. - Payment cap. - VA loan.

- VA loan.

Which of the following expenses is NOT usually incurred by a tenant? - Security deposit. - Utilities (other than water). - Renter's insurance. - Property taxes. - None of these are incurred.

- property taxes

Lonnie wanted to sell his house but didn't know what price to ask. He should consider all of the following except - Current mortgage rates. - Demand in the housing market. - His original cost. - Recent selling prices of comparable homes in the area. -The appraised value of his home.

- His original cost.

Jim wants to make an offer to buy an older house. At this point, he should - Move into the house. - Set up a home inspection. - Contact the seller to purchase his lawn tools. - Close the purchase transaction. - Sign his mortgage papers.

- Set up a home inspection.

Which of the following is a disadvantage of renting? -Renters have fewer responsibilities than home owners. - Tenants cannot take tax deductions for mortgage interest and property taxes. - Renters usually do not have to be concerned with maintenance and repairs. - Taking possession of a rental unit is less expensive than buying a home. - Renting can be more convenient for those who move frequently.

- Tenants cannot take tax deductions for mortgage interest and property taxes.

Most tenants sign a lease. Which of the following is part of a lease agreement? - The amount of the down payment. - The conditions under which the landlord may enter the apartment. - The interest rate for a lease loan. - The name and address of the buyer. - The sale date.

- The conditions under which the landlord may enter the apartment.