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Ch. 7: Financing Housing Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What's the most significant difference between a deed of trust and a mortgage from a practical standpoint?

Question 2 2. Harry's investment property has been assessed at $150,000. Harry does not live in his investment property and he doesn't qualify for any exemptions. The mill rate is 15. What is Harry's total annual property tax?

Question 3 3. Which of the following is an example of a voluntary encumbrance?

Question 4 4. Identify the best description for the term 'principal'.

Question 5 5. Which of the following fees are almost always paid by the seller?

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Question 6 6. Anne obtains a loan from First National Bank and a deed of trust is involved. Anne defaults. Which provision of a deed of trust permits the foreclosure of Anne's property without a lawsuit?

Question 7 7. What is the general definition of closing costs?

Question 8 8. How can a mortgage loan be beneficial?

Question 9 9. Sue is interested in purchasing her first home, which is $200,000. She has only around $8000 for down payment and has never served in the military. Which type of loan would be most appropriate for Sue?

Question 10 10. Local ____ are assessed annually, while ____ are assessed when the property is sold.

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Question 11 11. Which type of mortgage can be obtained by men and women who have served in the armed forces, and their family members?

Question 12 12. Where can a buyer see a list of the closing costs associated with their purchase?

Question 13 13. Kerry's residence is assessed at $170,000 and the land it sits on is assessed at $30,000. Kerry's state permits a homestead exemption equal to the lesser of 10% of the assessed value or $50,000. The mill rate is 15. What's Kerry's total annual property tax?

Question 14 14. Which of the following items are prorated and divided between the buyer and seller?

Question 15 15. Nancy has defaulted on her home loan. Her next statement from the bank demands payment of the entire loan immediately. What provision in her deed of trust permits this?

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Question 16 16. Which type of mortgage loan maturity provides the smallest monthly payment but most interest over the life of the loan?

Question 17 17. In property tax assessment, what's a mill equal to?

Question 18 18. What is an encumbrance?

Question 19 19. How is homeowner's insurance typically paid at closing?

Question 20 20. A title insurance policy verifies which of the following?

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Question 21 21. Which of the following is an essential party to a deed of trust?

Question 22 22. Tomas has a mortgage on a duplex without a reconveyance clause. He pays off half of the mortgage and requests that the lender transfer title for half of the property. Why would Tomas have legal issues in this case?

Question 23 23. Sue bought a house. Two years later, she finds that the title was clouded and she may or may not own the house. How will the title insurance help her?

Question 24 24. What is the best first step in challenging a property tax assessment?

Question 25 25. An involuntary encumbrance is _____.

Ch. 7: Financing Housing Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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