BUSI 223 Smartbook Chapter 6, 8 and 9 solutions complete answers

BUSI 223 Smartbook Chapter 6, 8 and 9 solutions complete answers 

 

Which of the following are examples of properly using credit?

 

Credit allows you to buy clothes today and pay for them in the      .

 

What are some disadvantages of credit?

 

True or false: A reliable way to see if you can afford a loan is to determine what you will give up to make the monthly loan payment.

 

Which of the following is the IDEAL, not maximum, debt payment-to-income ratio?

 

Purchasing a house for your growing family is an example of how credit can be used advantageously because doing so:

 

Typically, qualified cosigners:

 

Which of the following is the main advantage of credit?

 

What is a credit bureau?

 

Why should you care how to use credit?

 

A credit file contains your detailed       information.

 

Which of the following should you consider when determining whether you can afford a loan?

 

True or false: The Fair Credit Reporting Act was enacted in 1960.

 

To calculate the debt payments to income ratio:

 

True or false: People who have a strong willingness and ability to repay debts generally have the highest credit ratings.

 

When cosigners sign their loans, they:

 

What are the five Cs used by lending institutions?

 

A credit bureau is a reporting agency that collects credit and other information about consumers.

 

When referring to credit, capacity refers to:

 

What is typically in a credit file?

 

A borrower’s assets in excess of liabilities is called:

 

The Fair Credit Reporting Act of 1971:

 

One of the 5 Cs of credit is      . This is a valuable asset that can be taken to satisfy a loan obligation.

 

When referring to credit, character means:

 

Conditions, one of the five Cs of credit, refers to the general       conditions that can affect your      to repay a loan.

 

When you are applying for a bank loan, the bank will:

 

Capacity is the borrower’s financial       to meet the credit obligations.

 

When evaluating the 5 Cs of credit, ______ is determined by a borrower’s assets or net worth.

 

Gender, age, and occupation are all       factors that affect your buying decisions.

 

How is collateral used in evaluating loans?

 

What do conditions mean in reference to credit?

 

The information on the label of some food products includes       dating that helps the consumer determine freshness. This is a one word answer.

 

Which of the following are personal factors that could affect your daily buying habits?

 

If a 10 pound bag of dog food sells for $6.99, what is the per unit cost of the dog food?

 

One of the best sources of information about the product you are considering buying is

 

A possible       of leasing an automobile is the smaller upfront cash outlay (i.e., security deposit).

 

Character, capacity, capital, collateral, and conditions are known as:

 

Which of the following is not a drawback of leasing an automobile?

 

Product label on appliances includes information on operating      , to assist you in selecting the most energy-efficient models.

 

At the end of a car lease, if the market value of the car is less than the residual value, you may be able to sell the car for a profit.

 

The unit price of the chocolates in a box is found by dividing the price of the box by the number of chocolates in the box.

 

You are considering a car with no down payment and monthly payments of $350 for 48 months and an estimated value at the end of the loan term of $4,000. A comparable model can be leased for $325 a month for 36 months with end-of-lease costs of $1,400. Which arrangement should you choose?

 

The common sources of information regarding products during the pre-shopping phase include personal      , media, and independent testing agencies such as Consumer Reports.

 

Products such as real estate or automobiles may be purchased using       negotiation.

 

Lease payments are often less than loan payments.

 

Which of the following are given in the textbook as good sources for fair pricing on used cars?

 

True or false: The drawbacks of leasing an automobile include no ownership interest in the vehicle and costs for extra mileage, for certain repairs, and for turning the car in early.

 

The factors that influence the price of a used car include:

 

Which of the following items is NOT a variable in the cost of a lease?

 

The range of negotiation is determined with a new car by knowing the       price and the       cost.

 

You are considering a car with no down payment and monthly payments of $550 for 48 months and an estimated value at the end of the loan term of $8,000. A comparable model can be leased for $550 a month for 36 months with end-of-lease costs of $1,800. Which arrangement should you choose?

 

Dealing with the person who has the       to give you a lower price is a vital factor of negotiations.

 

Which of the following automobile costs are variable costs?

 

Two important sources of used car prices are Edmund’s Used Car Prices and the Kelley Blue Book.

 

Depreciation is the largest ______ cost of a new vehicle.

 

True or false: One of the factors that influences the price of buying a used car is capitalized cost.        

 

True or false: Well-maintained and certain high-quality vehicles depreciate at slower rates than vehicles not receiving the same level of care or not consisting of the same high quality.

 

The difference between the sticker price and the dealer’s cost is usually the range available for

 

Your      , needs, desires, and attitudes are reflected in your choice of a home.

 

A car with a total purchase price of $12,000 is available while a comparable model can be leased for $350 a month for 36 months with end-of-lease costs of $800. Which arrangement should you choose?

 

The opportunity costs and common trade-offs of a housing decision include which of the following?

 

Which of the following automobile costs are fixed costs?

 

Which of the following are possible disadvantages of owning a previously owned home?

 

The loss of a vehicle’s value due to time and use and the largest fixed cost of a new car is called      .

 

The advantages of owning a new home include:

 

Well-maintained and certain high-quality vehicles       at slower rates.

 

Which of the following are advantages of renting a house?

 

Buying decisions make a(n)       about your lifestyle.

 

Which of the following are disadvantages associated with renting an apartment?

 

Like many financial decisions, when making a housing decision, you should consider what you give up in time,      , and money as a result of the decision.

 

Renting is less costly in the short-run while       a home usually has long-term financial advantages.

 

Which of the following are advantages of owning a home?

 

Renting makes job transfers ___________.

 

What are some of the disadvantages of new home ownership?

 

While most mortgage payments are fixed,       can be subject to increases over which the tenant has no control. (Enter only one word per blank.)

 

Which of the following are disadvantages of renting a house or an apartment?

 

When you       on a home purchase, you arrange for a date to sign papers, obtain funds and the necessary documents, and request clarification on any unclear issues. This is a one word answer.

 

Which of the following are the advantages associated with renting an apartment?

 

Having a place to call your own, the stability of a residence and a personalized living space all contribute to a feeling of       of ownership of a home.

 

True or false: People who have very little money in savings will probably rent housing rather than purchase it.

 

True or false: Home ownership can limit your mobility because real estate can be difficult to sell.

 

Renting increases mobility by:

 

An old adage that the three most important factors to consider when buying a home are location, location, and location means that the       plays an important part in determining market value.

 

One of the reasons why renting offers fewer financial benefits than home ownership is that rent is not       deductible while the interest on mortgage payments is.

 

True or false: Some of the factors to consider when determining a price for a home include the owner’s need to sell, the time the home has been on the market, and the features and condition of the home.

 

Just before closing on a house, you often do a ________ before accepting the property.

 

The most common sources for a(n)       payment for a home purchase include personal savings, pension plan funds, sale of investments, and assistance from relatives. This is a one word answer.

 

Which of the following is NOT one of the benefits of home ownership?

 

Private mortgage insurance (PMI) is required when the down payment is less than:

 

The three drawbacks of home ownership are:

 

Payments of anywhere from 10 to 30 years are _____ for mortgages.

 

Real estate agents will tell you that location is very important when selecting a property because there are different zoning laws in different areas.

 

Despite the fact that conventional mortgages offer fixed payments, some borrowers will select an adjustable rate mortgage over a conventional mortgage because:

 

True or false: Two external (market) factors that affect the price of a home are the current demand for housing and the financing options (i.e., interest rates) available.

 

The one drawback of a conventional 15-year or 20-year mortgage when compared to a 30-year mortgage is:

 

Common sources of down payment funds to purchase a home include:

 

How could the tax benefit and risk of a home equity loan best be described?

 

Private mortgage insurance (PMI) is required when the down payment is less than      %. This is found in the discussion of determining the amount of your down payment.

 

True or false: As a general rule, it may be wise to refinance when the interest rates on mortgages drop at least 1 percentage point below your current mortgage rate.

 

Which of the following are the common terms (years) of home mortgages?

 

The main benefit of a conventional 30-year mortgage is (found in discussion of types of mortgage loans):

 

When calculating the number of months to recover your       costs on a refinance of a mortgage, you divide the closing costs by the monthly savings as a result of the new lower payment. This is a one word answer.

 

The benefits of a conventional 15-year or 20-year mortgage usually include:

 

Making needed repairs, painting the interior and exterior of the home and cleaning all rooms are strategies that can lead to a fast and financially favorable sale.

 

True or false: Home equity loan interest is only tax deductible as long as the proceeds are spent on education with the risk being that a default on the equity loan could mean foreclosure.

 

True or false: Factors that impact the asking price for a home include recent asking prices of comparable homes in your area.

 

Which of the following captures the main factor to consider when refinancing a loan at a lower rate?

 

An important security measure to take when selling your own home is to show the home when       or more adults are at home.

 

In addition to showing your home and marketing it to potential buyers, real estate agents can screen potential home buyers to see if they       for mortgage financing.

 

Interest rates drop, and by refinancing you can save $110 a month. If the closing costs on the new mortgage are $2,090, how long will it take you to recover your closing costs (as a result of the savings)?

 

The importance of preparing your home for sale is that it can make for a fast and financially favorable sale.

 

The factors that influence the asking price for a home include recent       prices of comparable homes in the area, demand for homes in the housing market, and available financing.

 

You can save money selling your own home, but it requires an investment in       and effort.

 

The services that a real estate agent can provide include suggesting an asking price, making potential buyers and other agents aware of your home, and screening potential buyers to determine whether they will qualify for a mortgage.

 

True or false: Credit is defined as an arrangement to receive cash, goods or services now with payment in the future.

 

Which of the following is not a valid reason for using credit?

 

What are the advantages to overspending with credit?

 

Which of the following statements is true?

 

An example of open-end credit is:

 

Which of the following is the best description of the importance of consumer credit in the U.S.?

 

A loan from the bank for personal use is considered _____ cash credit.

 

A periodic charge for the use of credit is known as _____

 

Closed-end credit is paying back a loan:

 

A loan for a motorcycle is an example of:

 

In what way can credit help consumers live more efficient and productive lives?

 

A line of credit is:

 

To calculate the debt payments to income ratio, total monthly debt payments (excluding home mortgage) is divided by the _____ monthly income of the consumer. This is one word answer.

 

A method to confirm that you can pay for the loan is:

 

Which of the following situations will credit provide an opportunity for a more efficient and productive life?

 

Select all of the following ways that represent the improper use of credit.

 

Which of the following is something that the Equal Credit Opportunity Act designed to do?

 

True or false: Using credit to purchase goods and services may allow consumers to be more efficient or more productive.

 

The maximum debt payment-to-income ratio that is acceptable is around ___________ %. This is found in the discussion of debt-payments-to-income ratio.

 

To improve your credit score, it is important to:

 

What does the Fair Credit Billing Act (FCBA) do?

 

What are the factors that a creditor cannot use to deny a person credit?

 

What is the proper way to correct a billing error?

 

The Fair Credit Billing Act’s underlining purpose is:

 

The Fair Credit Billing Act provides that you may withhold payment on damaged or defective goods or poor services you have purchased with a credit card as long as you have

 

The most important thing you can do to improve your credit score is to pay your bills on

 

Who can a victim of identity theft call to network with other victims?

 

The law that protects consumers by setting standards for correcting billing mistakes and allowing customers to avoid paying for defective merchandise is called the ______.

 

If you purchase a new but defective item that the business will not accept as a return, what does the FCBA require?

 

If you have a complaint about a business while dealing with identity theft issues, you can file a complaint with:

 

True or false: If you find a problem in your bill, you should notify the credit bureau in writing within 60 days.

 

The Act that prohibits creditors from giving inaccurate information or denying consumers the right to cancel credit accounts is:

 

How does the Secret Service fight identity theft?

 

True or false: When suing a creditor, you can sue for actual damages and $15,000 in punitive damages.

 

What is the procedure under consumer credit laws when denial of credit is discriminatory?

 

An express warranty is usually in writing, is created by the _____________ or manufacturer, and has two forms: _____________ warranty and limited warranty.

 

A full warranty states that a defective product can be fixed or ____________ during a reasonable amount of time.

 

Banks, credit _______________, and consumer finance companies are all businesses that are sources of car loans.

 

The APR is the best indicator of the true ___________ of credit.

 

Which of the following are sources of automobile loans?

 

With an internet _________ scheme, investors are promised that they will receive over $100,000 for an initial investment of approximately $100 as long as the investor sells “certificates” to at least three other people.

 

True or false: The monthly payment is the best indicator of the true cost of a car loan.

 

Most consumer complaints are resolved at the original ________ location.

 

In _____________, a third party tries to settle a grievance and the process is binding.

 

The typical foreign scam works via mail or e-mail and requests your _____ account number.

 

Which of the following is not true concerning small claims court?

 

True or false: A person could choose not to participate in a class action suit and instead file an individual lawsuit.

 

When selecting a lawyer, the questions to ask focus on the lawyer’s _________ with similar cases, how charges will be set, and when _______ is due.

 

Even if you win in small claims court, you will still need to

 

In a ___________ action suit, all affected parties are notified as to whether or not they want to participate or file an individual lawsuit. This is a one word answer.

 

What are the disadvantages of owning a condominium?

 

Renting is a fairly _________ practice in the U.S. with about 35% of households living in rental units.

 

When selecting an apartment, rent, length of lease, security deposit, and utilities are some of the _________ people should consider.

 

What are the advantages of owning a condominium?

 

A _______ deposit provides the landlord with funds to cover the cost of any damages done to the rental unit during the lease period.

 

Approximately 35 percent of U.S. households live in ______.

 

Schools, shopping, and recreation are some of the important ____ aspects of selecting an apartment.

 

True or false: A security deposit covers the cost of damages that may be done to a rental unit.

 

Which of the following are advantages of home ownership?

 

Which of the following factors would be considered economic factors that could affect your daily buying habits?



A limited warranty covers only certain aspects of the product and requires the buyer to pay part of the costs for:

 

Economic factors that affect your daily buying include inflation, interest rates, and tax rates.

 

At the end of the lease, if the residual value of the vehicle is greater than its market value, then you should return the car to the leasing company.

 

True or false: Most businesses are concerned for their reputation and therefore correct legitimate complaints.

 

Most consumer complaints are resolved:

 

When selecting a lawyer, questions about legal costs should focus on the way charges will be calculated, such as       fee, as       rate, or contingency basis.

 

In      , a third party tries to settle a grievance, but the process is non-binding.

 

One strategy that will help you avoid deceptive business practices is to always do business with reputable companies that have a track       of satisfying customers.

 

Be cautious about offerings that seem too       to be       because they often are.

 

The first phase in the buying process involves information gathering.

 

Government agencies provide education programs and complaint hotlines to assist consumers in gathering information to make wise buying decisions.

 

The most consistent quality is usually found with national-brand products.

 

Service contracts are usually free and included in the cost of appliances and other high-priced items.

 

____________ are nonprofit organizations organized by member-owners to save money on various products and services. Their prices are usually lower than at other retailers.

 

A 64-ounce package selling for $3.20 would have a unit price of:

 

Mike Jacobs is planning to lease an automobile. In an effort to minimize the price of the vehicle being leased, Mike should compare the ____________ at different leasing companies.

 

Brian Williams has a piece of paper that he gives to the cashier when he purchases a grocery item that saves him a dollar off the cost of that item. What is he most likely using?

 

Which of the following is least likely to assist you in timing purchases to help you obtain bargains?



 

Which of the following is not a social factor that would influence a consumer buyer’s decision?



True or false: Consumer credit is different than business credit.

 

Which of the following are common alternatives to finance current purchase?

 

Spending all of your money on credit card bills will:

 

What effect will paying your credit card balance on time have on your credit score?

 

The term consumer credit describes:

 

Which of the following is not an example of paying later for goods received now?

 

What occupation began using credit first?

 

True or false: You should deplete your savings to finance a purchase.

 

What is consumer credit based on?

 

Economists now recognize _____ _____ as a major force in the U.S. economy.

 

Baby boomers have always been _______ users of credit.

 

What is the difference between consumer credit and business credit?

 

The _____ _____ generation holds nearly 60% of consumer credit debt.

 

What demographic originally used credit?

 

True or false: Using a home equity loan to catch up on your home mortgage can be a sign of greater financial problems.

 

True or false: Feeling bored and purchasing all 25 sets of dishes from a television shopping channel, just to have them, is a sign of compulsive shopping.

 

Which of the following are reasons for high debt in the baby boom generation?

 

What is the trade-off for using credit?

 

What generation holds the majority of consumer credit?

 

When making large purchases on credit consider the:

 

People who shop impulsively and often use a great deal of credit are called

 

True or false: The trade-off of credit is the availability of future income.

 

Negative implications of using too much credit include:

 

Which of the following is an example of using credit to better your life financially?

 

What types of services are provided by credit card companies?

 

Which of the following is not a question to consider before deciding to make a major purchase?

 

True or false: Credit cards can be convenient since you need a credit card to make a hotel reservation.

 

Positive implications of the use of credit include:

 

What is a synonym for “float” when referring to credit cards?

 

Customers with previously approved credit may receive other _____, such as advance notice of sales.

 

An example of co-branded credit cards is:

 

One convenient aspect of using credit is that multiple charges can be accumulated and paid in one monthly _____

 

What does “float” mean when referring to credit cards?

 

True or false: Rebates can be points earned toward another purchase.

 

With a maxed-out credit limit, paying the minimum credit card payments each month is an example of:

 

Interest on interest is an example of:

 

Closed-end loans are _____ loans repaid within a(n) _____ time frame with equal payments.

 

Making barely enough money to pay off your credit card bills leads to:

 

What are the three types of closed-end credit?

 

True or false: Paying for a purchase over a period of time is more costly than paying for them in cash.

 

An example of _____ -end credit is an automobile loan, whereas an example of _____ -end credit would be a credit card.

 

A prearranged amount of money that is accessed with special checks is called:

 

Which of the following is NOT true?

 

Purchasing gas, food, school books, and coffee on your Visa card are examples of what kind of credit?

 

The definition of open-end credit is:

 

A bank line of credit is also known as:

 

What is the difference between convenience users and borrowers?

 

True or false: Credit cards are not particularly common among consumers.

 

The main differences between annual fees and transaction fees are:

 

Why is paying only the minimum payment detrimental?

 

A line of _____ is the maximum amount of funds lent to a consumer.



The grace period is the time allowed to pay the balance on a credit card before interest accrues.

 

Consumers that pay off the balance each month are called:

 

Can credit cards be issued to consumers who have been irresponsible with credit?

 

Some credit cards charge no annual fee, but instead charge a

 

Which of the following is a disadvantage of paying the minimum payments on credit cards?

 

The difference between a smart cart and a regular credit card is:

 

What is a typical grace period for retailers?

 

Which of the following statements is not true?

 

Disadvantages of travel and entertainment cards include:

 

How can a consumer get a credit card if they have bad credit?

 

True or false: The base computation for a home equity loan is the current market value of the home less the amount you still owe on your mortgage.

 

An arrangement whereby borrowings are permitted up to a specified limit and for a stated period is known as:

 

A smart card is also known as:

 

What are responsible purchases with a home equity loan?

 

A card that is usually prepaid and tracks the balance available for you to spend is a:

 

One advantage of a T&E card is that

 

What type of credit is a home equity loan?

 

What is one method of determining your home equity line of credit maximum?

 

A home equity loan is never set up as a revolving line of credit where borrowings are allowed up to a specified limit and for a stated time period.

 

When evaluating a home equity loan, which of following should be examined?

 

A home equity loan can be seen as:

 

Credit card fraud affects:

 

Examples of protecting against fraud are:

 

True or false: Phishing is using e-mails or surveys to collect personal or sensitive information from people and use it illegally for gain.

 

Clara’s home is worth $200,000. She owes $83,000 on her mortgage. The lender will allow her to borrow up to 85% of the value of her home. How much can she borrow on a home equity loan?

 

True or false: It is important to evaluate the reason for taking a home equity loan.

 

What are the effects of credit card fraud?

 

True or false: Throwing away all credit card documents is a way to prevent fraud.

 

An individual should get intimidated by e-mails that warn of dire consequences for not following the sender’s instructions.

 

Phishing refers to which of the following?

 

When calculating debt-to-equity ratios, you should include:

 

When reporting suspicious e-mails or calls from third parties (found in the discussion of what’s phishing?):

 

If the primary borrower misses a payment:

 

True or false: Debt-to-equity ratio is calculated by total liabilities divided by net worth.

 

True or false: When cosigning a loan, you are not taking actual responsibility for payments. Your job is just to make the original borrower pay.

 

If you apply for a charge account, the creditor will check your

 

Which of the following are the names of credit bureaus?

 

True or false: The lender can sue and collect the total amount from the cosigner of the loan.

 

What should be considered before someone cosigns a loan with someone else?

 

The bank will not loan as much money when:

 

True or false: The three names of the major credit reporting agencies are Trans Union, Equifax, and Experiment.

 

True or false: To opt out from prescreened solicitations, you may notify the credit reporting agencies via mail.

 

If an unauthorized person(s) accesses your credit report, they could

 

Opting out is:

 

Your FICO score is:

 

How many years does credit history remain on file if you have not declared personal bankruptcy?

 

How often should you review your credit report?

 

Examples of individuals who are legally able to look at your credit report are:

 

True or false: To obtain your FICO score through www.myfico.com you must pay a fee.

 

The Credit Reporting Agency can disclose history of more than 10 years when:

 

John has discovered an error on his credit report. He has contacted the credit bureau. He should:

 

The ECOA protects individuals from discrimination in credit transactions on the basis of factors including race, color, age, sex, and marital status.

 

When reviewing applications for credit:

 

If bankruptcy is filed by the consumer, this:

 

What are techniques for managing your credit history?

 

A creditor cannot deny an adult credit based on _____ sex, race, color, religion or marital status.

 

You should review your credit file at a specific credit reporting agency at least _____ time(s) per year.

 

When creditworthiness is being determined, creditors look for which of the following?

 

True or false: Taking part in public assistance guarantees you will be denied credit.

 

Because of the ECOA, creditors may not use any appraisal of the value of your property that considers 

 

True or false: Although the five Cs are important, capacity is the only one that really matters.

 

What is the meaning of your credit rating?

 

Which of the following characteristics can not be used in your FICO score?

 

Even though the ECOA dictates that people on public assistance may not be denied credit for that reason, they are often denied because

 

What type of applications does the ECOA cover?

 

What are reasons to maintain good credit history?

 

Based on the data from the credit report, the two most important items when determining your FICO score are:

 

A billing error is:

 

Why do banks prefer customers with high credit scores?

 

By law, creditors must make accommodations to correct within a consumer’s credit and billing history. What law requires this?

 

When a mistake is made and a consumer complains, the Fair Credit Billing Act requires that the creditor must:

 

True or false: Creditors can look at a credit report to help determine if a potential borrower is trustworthy and stable.

 

How does the Fair Credit Billing Act protect consumer credit ratings?

 

When impostors take your name, Social Security number, credit card number, or some other piece of your personal information for their use, they are

 

Rank the following items in the order they should be completed to dispute a billing error.



How is identity theft often detected?

 

True or false: When a complaint is filed under the Fair Credit Billing Act, the creditor must respond to your letter within 30 days.

 

The three-step process to follow in cases of identity theft is to contact the _____ departments of the three credit reporting agencies, contact creditors for account activity, and, finally, file a _____ _____.

 

Which of the following are good deterrents of identity theft?

 

When someone steals your personal or sensitive information, this is called _____ _____

 

The _____ in Lending Act prohibits creditors from giving inaccurate information or denying consumers the right to cancel credit accounts.

 

How is identity theft detected?

 

What is the process you should follow when your identity is stolen?

 

Why should you avoid sharing sensitive personal information with strangers?

 

What would happen if a Credit Bureau verifies inaccurate information?

 

True or false: In the credit application process, the lender can deny a person based on gender.

 

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009:

 

Why should you keep personal information private?

 

The act that defines identity theft as a fraud committed or attempted using the identifying information of another person without lawful authority is the:

 

What does the Consumer Credit Reporting Act state?

 

The Consumer Financial Protection Bureau receives complaints from people who feel they have been discriminated against by

 

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 requires credit card companies to tell consumers:

 

Can a credit company legally deny a person credit even if they are credit worthy-good credit history and credit score?

 

The Fair and Accurate Credit Transaction Act requires:

 

If you believe you have been discriminated against by consumer reporting agencies or creditors, you should contact:

 

Personal preferences are the foundation of a housing decisions, but _________ factors will modify the final choice.

 

Your budgeted financial obligations help dictate the appropriate amount to _____ on housing.

 

The opportunity costs and common trade-offs of a housing decision include which of the following?

 

The advantages of owning a manufactured home (mobile home) include which of the following?

 

When it comes to mobile homes, which of the following statements are true?

 

Which of the following bests captures the steps of a search for rental housing?

 

Renters have fewer _____________ than homeowners since they usually do not have to be concerned with maintenance and repairs.

 

The factors to examine when selecting the LOCATION of an apartment include

 

Which of the following are reasons why the initial costs of renting are lower in the short run?

 

Tenants are usually ______ in the types of activities they can pursue in their home.

 

Renters have fewer responsibilities than home owners because:

 

The tenant is protected by rental increases during the lease term unless the lease contains a _____ allowing for increases.

 

Renters usually pay a ___________ upon moving into a new home, while homeowners likely pay significantly more for a _________ and closing costs.

 

True or false: After you vacate a rental unit, your security deposit should be refunded within a reasonable time.

 

Tenants are often subjected to restrictions regarding pets, decorating and remodeling.

 

For many apartments, one utility bill is included in the rent. Which one is it?

 

The tenant is protected from _____ during the lease term unless the lease contains a certain provision.

 

Once you have determined what you can afford for a down payment, you should investigate mortgage _____ and apply for a loan.

 

When determining a price to offer for a home, you should estimate a market price and then _____ with the seller.

 

Many states require that your security deposit be returned within a _____ time.

 

When you rent a house, you will usually need to pay for

 

As a home owner vs. a renter, you must be prepared to pay additional costs of home ownership, such as:

 

The most popular form of housing is:

 

When obtaining a mortgage, it is important to investigate ____ and ______ of mortgages.

 

When placing an offer on a house, you should first estimate the appropriate _____ price.

 

The expenses covered by a condominium monthly fee include:

 

Residents of cooperative housing _______ the units.

 

True or false: Home ownership has some drawbacks, such as limited mobility and financial uncertainty.

 

Many mortgage companies and banks will pre-qualify you for a mortgage loan by determining how much you can _____ for a home mortgage payment. This is a one word answer.

 

Single-family homes can be _____ or ____.

 

A number of factors can impact the amount you can spend on a home including current mortgage _____, the size of the down _____ you can make, and your income.

 

A condominium is a type of building structure and not a legal form of ownership.

 

Which of the following best describes the rights of residents of cooperative housing?

 

To determine how much you can afford to spend on a home, have a loan officer at a mortgage company or other financial institution to _____ you.

 

Selecting a location, considering a real estate agent, and conducting a home inspection are steps you take when you are:

 

Which of the following factors have an impact on the amount you can spend to acquire a home of your own?

 

Which of the following are the most important three considerations when evaluating a local school system?

 

Which of the following are main services offered by a real estate agent?

 

Factors such as the appearance of the neighborhood, the quality of landscaping, the condition of the driveway, and the outdoor lighting are part of the:

 

When you are finding and evaluating a property to purchase, you should

 

True or false: Negotiating the purchase price for a home may involve an offer and several counteroffers.

 

Potential home owners without children should evaluate school systems of the municipalities where they might live because:

 

The main services of a _____________ are to present your offer to the seller, negotiate a settlement price, assist in obtaining financing, and attend the closing.

 

Factors such as the material quality and condition of the building, the condition of the foundation, roof and gutters, and the type of chimney are part of the:

 

If you make an offer on a home, a counteroffer indicates

 

The Homeowner Protection Act requires that a PMI policy be terminated when the equity reaches _____ % of the property value at the time the mortgage was executed.

 

True or false: Banks, savings and loans, credit unions, and mortgage companies are common sources of mortgage loans

 

The interior construction factors to consider when performing a home _____ include the condition of plumbing, heating units, walls, floors, doors, and ceilings.

 

True or false: The monthly payment amount will be higher on a 15-year loan that on a 30-year loan, but the total amount repaid will be less.

 

Place the steps of the mortgage process in the sequence in which they occur.

 

The Homeowner Protection Act requires that a PMI policy be terminated when the equity reaches ______ of the property value at the time the mortgage was executed.

 

Which of the following are common sources of home mortgages?

 

The benefits of a FHA/VA fixed-rate mortgage include:

 

Joe Smith earns $72,000 per year. His bank uses a rule that PITI must be equal to or less than one third of gross monthly income. If his home owner’s insurance is $100 per month, roughly how much of a monthly payment can Joe afford including taxes over and above the $100 for insurance?

 

True or false: The drawback of an ARM mortgage is that monthly payments could rise in the future.

 

The step in the mortgage application process that involves completing the mortgage application is

 

The benefit of an interest-only mortgage is that the monthly payments are _____ than a conventional mortgage and therefore easier to _____.

 

An adjustable-rate mortgage is also referred to as a _________ mortgage.

 

The one drawback of a FHA/VA fixed-rate mortgage is:

 

In order to qualify for a reverse mortgage, you must be at least age ___.

 

The benefits of an ARM mortgage may include the following options:

 

The drawback to interest-only mortgages is that the loan balance does not _____ and therefore the only equity build-up occurs if the home value _____.

 

An adjustable rate mortgage usually has a rate cap and a _____ cap.

 

Who is most likely to benefit from a reverse mortgage?

 

When closing on a home, the seller usually pays:

 

When selling your own home, you should find out about the availability of ______.

 

Which of the following home improvements are the three most desirable (i.e., they will have the greatest positive impact on the asking price)?

 

When purchasing a home, the BUYER can expect to pay closing costs such as:

 

True or false: Even if you do not use a real estate agent to sell your home, you should use an attorney or title company to close the transaction.

 

You should obtain information about _____ available when selling your own home to help potential buyers determine whether a deal is possible.

 

Which of the following home improvements are not among the three that would have the most favorable impact on asking price?