Personal finance chapter 9

A home inspector is responsible for ____. a. negotiating a house's purchase price b. recommending lawyers and real estate agents c. evaluating the house and the land d. arranging financing for the purchase

c. evaluating the house and the land

A disadvantage of renting is ____. a. more responsibilities b. high initial costs c. restricted activities d. eligibility for tax deductions

c. restricted activities

A bank pays the full amount of a mortgage to ____. a. the buyer b. a savings and loan association c. the seller d. an escrow account

c. the seller

What should homeowners do when preparing to sell their home? a. hire a home inspector b. remove all furniture and appliances c. set a high selling price so there is room for negotiation d. make needed repairs

d. make needed repairs

Renting is often a wise choice for someone who wants ____. a. pets b. stability c. privacy d. mobility

d. mobility

A legal document that describes the conditions of a mortgage agreement is called a lease.

False

Common space in a condominium complex is owned by the condo owner.

False

Fixe-rate mortgages have payment that changes over the course of the loan

False

Points are paid to the county auditor company

False

Real Estate agents fee's are normally charged to the buyer.

False

Tax benefits are an advantage of renting a house.

False

Title insurance protects the buyer if problems are found with a property's taxes.

False

A seller usually pays a real estate agent a commission.

True

An appraisal is an estimate of the current value of a property.

True

To sublet is to let a person take over the financial responsibility of paying rent.

True

The following are all advantages of owning a condominium EXCEPT ____. a. easy to move b. pride of ownership c. tax benefits d. access to businesses

a. easy to move

A lender may ask a buyer to deposit money in an escrow account for paying ____. a. property taxes b. closing costs c. loan interest d. the principal

a. property taxes

When deciding how much to offer for a home, you should consider each of the following factors EXCEPT ____. a. whether the interior walls need painting b. how long the home has been on the market c. whether the current owners need to sell in a hurry d. how easily you can arrange financing

a. whether the interior walls need painting

What might a buyer do to get a low interest rate? a. buy mortgage insurance b. pay points c. pay an application fee d. amortize

b. pay points

An example of an attached home is a ____. a. one-story ranch b. townhouse c. prefabricated house d. mobile home

b. townhouse