PFS3

Which of the following is a form of housing in which the units are owned by a nonprofit organization?

Cooperative housing

Lonnie wanted to sell his house but didn't know what price to ask. He should consider all of the following except

His original cost.

When Ingrid was selling her house, she contacted Gabe, her real estate agent, to help her with the sale. Gabe's services included all of the following except

Home appraisal.

Most products come with some guarantee of quality. This type of warranty covers the product's intended use or other basic understandings that are not in writing.

Implied warranty

The owner/landlord is known as the

Lessor.

Most products come with some guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a reasonable amount of time.

Full warranty

The appearance of a used car can be deceptive. When purchasing a used vehicle, it is a good idea to

Have a trained and trusted mechanic of your choice check out the vehicle.

While Paul was shopping for a new chainsaw, he found a great deal on a new drill and bought it. This is an example of

Impulse shopping.

If you do not pay back any of the loan amount for a portion of the loan period but are not defaulting in the loan, you have a(n)

Interest-only mortgage.

The dealer's cost is also known as the

Invoice price.

Which of the following is correct about the lemon law?

It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles.

Which of the following provides the tenant protection from rent increases?

Lease

A legal document that includes information about the due date of monthly rent is called a

Lease.

Adolph has a low income and cannot afford his own attorney. He needs legal assistance and should make use of (a)

Legal aid society.

The tenant is the

Lessee.

Most products come with some guarantee of quality. This type of warranty covers only certain aspects of the product, such as parts.

Limited warranty

A variable operating cost for a vehicle is

Maintenance and repairs.

All of the following are fixed operating costs for a vehicle except

Maintenance and repairs.

Diane purchased her house and had it assembled before it was moved to her lot. She purchased a

Manufactured home.

A process used to settle grievances in a nonbinding process is called a(n)

Mediation.

A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost?

Money factor.

Which of the following is an advantage of a car lease?

Monthly lease payments are usually lower than monthly financing payments.

Private mortgage insurance

Must be terminated automatically when the homeowner's equity reaches 22% of the property value at the time the mortgage was executed.

These products are highly advertised and available at many stores.

National brands

The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called

Negative equity.

This shopping label is used primarily on perishable products to help the consumer judge freshness or shelf life.

Open dating

Trenton wants to buy a house but can provide only a 10% down payment. He probably will be required to have

PMI payments.

During the closing for a home purchase, you will normally do which of the following?

Pay all closing costs, settle last-minute details, and sign documents

Yvette has a flexible-rate mortgage that limits the amount to which her monthly payments can rise. This feature is called a(n)

Payment cap.

A vehicle lease has several costs. Which of the following is the amount paid monthly and the number of payments?

Payment schedule

Rebecca paid extra money to reduce her mortgage interest rate. That extra money is called:

Points.

These products are sold by one chain of stores and are low-cost alternatives to famous-name products.

Private-label or store brands.

A reverse mortgage

Provides older home owners with tax-free income in the form of a loan that is repaid when the home is sold or the home owner dies.

A partial refund of the price of a product is called a

Rebate

George has never bought a new car before. Which of the following techniques should he use to get the best deal?

Research the dealer cost and begin negotiations from that point

The expected value of a vehicle at the end of a lease is called the

Residual value.

A no-haggling dealer presents the price of a new car to be accepted or rejected as stated and is called a(n) ________ dealer.

Set price.

Jim wants to make an offer to buy an older house. At this point, he should

Set up a home inspection.

If you have a problem whose remedy will be between $1,500 and $3,000, the appropriate tool to use would be (a)

Small claims court.

The amount printed on a label with the suggested retail price that is posted on a vehicle is called the

Sticker price.

The opportunity to have another person take over rent payments and live in the rental unit is called (a)

Subletting.

Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by

The county health department.

Kelly selected a home and submitted an offer to the seller.

The seller may reject the offer and choose to provide a counteroffer.

Which of the following is NOT correct regarding real estate agents?

They require that you conduct your own showings.

Elaine purchased her living unit in a building with five other separate units. She purchased a

Townhouse.

Which of the following is NOT correct?

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)

VA loan.

This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired.

Warranty

Ricky has a conventional mortgage. He can monitor the reduction of his loan balance through his payments by using ________ information.

amortization

Madeline wants to purchase a larger house. However, she has not yet sold her current home. She may want to include a(n) ________ in her offer.

contingency clause

When Sam applied for a loan, he was assured that his rate would not change if he closed within 30 to 90 days. Sam had a(n) ________ on the interest rate.

lock

Steven needs to write a will. His best resource is (a/an)

Attorney.

What is the unit price of a 32 ounce box of brown sugar that costs $3.20?

$0.10 per ounce.

Carrie bought a house five years ago for $150,000. At that time she borrowed $140,000 from her bank. The house is now worth $162,000. Her PMI will automatically be dropped when her mortgage balance drops to

$117,000.

Marcus can afford a monthly mortgage payment of $900. If he is eligible for a 30-year, 5% mortgage (where the mortgage factor is 5.37), how much of a mortgage loan can he afford?

$167,597.77

Given the information here, what is the annual cost of owning?

$17,900

Using the following information, what is the cost to lease a car?

$18,530

Which of the following is a disadvantage of a car lease?

At the end of the lease, you have no ownership interest in the vehicle.

Using the following information, what is the cost to buy a car?

$24,560.

If you have a $150,000 30-year 5% mortgage, how much of your first monthly payment of $805.50 would go toward interest?

$625.00

Opal is a real estate agent who represents the buyer as well as the seller. In some states, the buyers are required to sign a disclosure acknowledging that they are aware that Opal is working as

A dual agent.

If you are selling your house by owner, you should still enlist the assistance of

A lawyer or title company to assist with the contract, closing, and other legal matters.

While evaluating alternatives, all of the following are appropriate questions you could ask before making a major purchase except

All of these are questions that should be asked.

What should a home buyer consider when evaluating a house?

All of these should be evaluated.

Donald wanted to buy a house in the country, so he sought advice from his cousin Evan. Evan explained the advantages and disadvantages of home ownership; however, he had some information incorrect. Which of the following is incorrect?

An advantage is that the down payment required is less than the security deposit for a rental.

When Nancy buys her house, the mortgage company will usually conduct

An appraisal.

The price of a leased vehicle is known as the

Capitalized cost.

Craig wants to get his old car repaired, but he doesn't want to spend much money. He probably will NOT want to go to the most expensive repair service, which is from a(n)

Car dealer.

Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem?

Class action lawsuit

When Jane researched the brands and prices of refrigerators, she was

Comparison shopping.

Paul and Lora built their home. When they researched contractors, they considered all of the following except

Contractor's property tax payments during construction.

This type of promotion immediately reduces the amount a family spends on groceries each week.

Coupons

Which of the following is the document that transfers ownership of property from one party to another?

Deed

All of the following are variable operating costs for a vehicle except

Depreciation.

Frank and Diane want to buy a house. Which of the following do they need before they purchase a house?

Down payment.

Which of the following is an account used to pay property taxes and homeowner's insurance?

Escrow

Quinn applied for a loan. He provided information about his finances and the home he plans to purchase. Results of the affordability mortgage calculation included all of the following except

Expected maintenance costs.

Most products come with some guarantee of quality. Which of the following is usually in written form, created by the seller or manufacturer, and has two forms?

Express warranty

Mike bought a new car. His new car warranty probably included all of the following except

Extended coverage for air conditioning.

Paul is looking for a low interest, low down payment loan for his first home, but he is not a veteran. He might be eligible for a(n)

FHA loan.