DS - Housing II

1.

10 points

A home warranty will cover the following:

crack in home due to ground shifting

broker water pipe

a faulty air conditioner

a crack in the cement driveway

2.

10 points

What is collateral?

what the bank asks in return for a loan

the money a person receives for their car title

what a person will sacrifice if they default on a loan

the amount of money they receive from a home equity loan

3.

10 points

Tim is purchasing a new home for $157,600. Due to his poor credit score, he will have to put down 19% down payment and is eligible for a 30 year loan at 6.5%. Calculate Tim's loan payment.

$806.79

$994.56

$1,277.66

$2,994.56

4.

10 points

Which of the following is NOT a reason people 're-finance' their homes?

to receive a lower loan interest

to lower their house payment

to increase their equity

none of above

5.

10 points

Jon had a coin collection that when he bought 5 years ago was worth $1,900.00. In the current year the collection was worth $3,800.00. Jon has a replacement cost renter's insurance policy with a $300 deductible. After his coin collection was stolen in a break-in, he called the insurance company and made a claim. How much did Jon receive from insurance company?

$3,500

$5,400

$1,600

$1,800

6.

10 points

Amy wants to move into a new apartment. Her rent will be $895.00/month. She has to pay a $500 deposit and due to the fact that she owns a pet a $300 pet deposit. What are Amy's total move-in costs?

$895

$1,395

$2,590

$1,695

7.

10 points

Which if the following is NOT a mortgage 'closing cost'?

loan application fee

water system fee

appraisal fee

attorney fee

8.

10 points

Tim also has to pay property taxes of $2995.00 per year, owners insurance of $1500.65 per year, flood insurance of $799.99 per year and $1,050.50 of utilities per year. What is Tim's escrow per month?

$528.84

$441.30

$895.23

$645.22

9.

10 points

What is equity?

the depreciation of your house

the amount of money you can sell your house for

the amount of money the bank will lend you

the increase in the value of your home

10.

10 points

Grace's home is appraised at $330,500.65. She pays property taxes to 3 jurisdictions. The ISD (1.1567%); the county (0.39117%) and the city (0.63875%) What is the monthly amount she will put in escrow to cover these property taxes?

$602.23

$672.56

$785.65

$701.58