Personal Finance True & False
Your decision to rent or to buy your residence should be based solely on lifestyle factors.
False
A condominium is a form of housing in which the units in a building are owned by a nonprofit organization.
False
A disadvantage of home ownership is the deductibility of mortgage interest and real estate tax payments.
False
A duplex is a house with two or more separate dwellings.
False
A landlord has the right to sublet an apartment.
False
About 50 percent of home sales are By Owner.
False
An advantage of a second mortgage is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.
False
An advantage of renting is pride of ownership.
False
An approved mortgage application usually locks in an interest rate for 60 - 120 days.
False
As interest rates increase, more people have the ability to afford an average-priced home.
False
At the closing of a home purchase, the buyer conducts a walk-through of the property.
False
Home improvements will definitely increase the selling price.
False
If you pay an extra $100 per month on your mortgage, your total loan principal will decrease and your total interest will remain the same.
False
If your home is assessed for $200,000, the market value of the home should be less than $200,000.
False
Merrill bought a house and applied for a loan through the VA (Veterans Administration). The VA will provide the down payment when he closes on the house.
False
Mortgage points are paid at the end of the mortgage.
False
Most new mortgages are assumable.
False
Private mortgage insurance is usually required if the down payment for a home is less than 30 percent.
False
Rental insurance isn't very important since the landlord's insurance on the building includes coverage on all tenants' belongings.
False
The most common conventional mortgage is the 20 year ARM.
False
The purpose of an escrow account is to pay the points at closing.
False
When Brett's apartment lease ends, he should receive his entire security deposit back even though the carpet has been damaged while he was living there.
False
When interest rates are high and the demand for homes is low, prices of homes will likely be at a premium.
False
A balloon mortgage has fixed monthly payments for a period of time. At the end of that time, the entire principal balance must be paid in full.
True
A handyman's special is a home that needs work and is priced lower than homes in better condition.
True
A real estate agent can provide service to save you time and effort with selling your home.
True
An advantage of a buy-down is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.
True
Angela wanted to rent an apartment, so her landlord required her to sign a lease. The lease is a legal document that defines the conditions of her rental agreement.
True
Lenny the landlord has the right to take legal action against Tina the tenant if she does not pay her rent on a timely basis.
True
Most low and middle income people will NOT qualify for a VA-guaranteed loan.
True
Your lifestyle affects your housing buying decisions.
True