Module 5 PF

A newly married couple is having trouble affording a home. What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?

Buy-down

Gary Smith is purchasing one housing unit in a building with several units. What type of housing is Gary most likely going to live in?

Condominium

Real estate advisors suggest a price-to-rent ratio of 25 or lower when you buy to possibly avoid a lower home value after your purchase.

False

Which type of repair problem is more likely to be covered by a new homeowner service contract?

Heating and air-conditioning system failure

Which of the following expenses is paid from an escrow account?

Property taxes

A class-action suit is a legal action taken by a few individuals on behalf of all the people who have suffered the same alleged injustice.

True

One way to gather information about a product is to use an independent testing organization like Underwriters Laboratories (UL).

True

Unit pricing uses a standard unit of measurement to compare the prices of packages of different sizes.

True

A used car sold "as is" has:

an implied warranty of merchantability

The purpose of the invoice price is to inform customers of the:

dealer's cost.

An example of an economic factor that influences buying decisions would be:

inflation

Refinancing of a mortgage is recommended when:

interest rates fall.

The main purpose of Consumers Union is to:

report the quality of products and services.

A real estate short sale occurs when:

the new selling price is less than the amount owed on a previous mortgage.

Impulse buying refers to:

unplanned purchasing.