fina ch 7

When Nancy buys her house, the mortgage company will usually conduct a(n) a Earnest money. b Dual agent. c Contingency clause. d Purchase agreement. e Appraisal.

Appraisal.

Diane purchased her house and had it assembled before it was moved to her lot. She purchased a a Condominium. b Townhouse. c Single-family dwelling. d Manufactured home. e Cooperative housing.

Manufactured home.

Yvette has a flexible-rate mortgage that limits the amount to which her monthly payments can rise. This feature is called a(n) a Payment cap. b VA loan. c Rate cap d FHA loan. e Negative amortization.

Payment cap.

Walt has decided to sell the home he has lived in for 50 years. The house has two bedrooms on the first floor, a finished basement, and a finished attic with a low ceiling. To prepare his home for sale, he should a Underestimate the cost of utilities. b Keep everything "as is." c Exaggerate the size of his yard. d Take steps to remove excess furniture to make areas look larger. e List his house as a three-bedroom.

Take steps to remove excess furniture to make areas look larger.

A duplex is a house with two or more separate dwellings. t/f

false

When interest rates are high and the demand for homes is low, prices of homes will likely be higher . t/f

false

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

the conditions under which the landlord may enter the apartment.

Elaine purchased her living unit in a building with five other separate units. She purchased a a Single-family dwelling. b Prefabricated home. c Manufactured home. d Townhouse. e Duplex.

townhouse

A handyman's special is a home that needs work and that you are able to get at a lower price t/f

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. t/f

true