Personal Finance True & False

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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


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