Multiple Choice s4

Name______Date______

CHAPTER 9 QUIZ

TRUE-FALSE _____1. Several financial benefits are associated with renting your place of residence. _____2. A lease is mainly designed to protect the rights of the landlord. _____3. Cooperative housing involves the purchase of an individual living unit in a multiunit complex or building. _____4. Financial risks are associated with the purchase of a home. _____5. Most mortgage rates are established by government agencies.

MULTIPLE CHOICE _____6. A common advantage associated with home ownership is a. financial benefits. b. ease of mobility. c. limited financial risks. d. low initial costs.

_____7. Most real estate professionals believe that the most important factor in selecting a home is a. price. b. style. c. location. d. desired features.

_____8. The major factor that affects a person’s qualification for a mortgage is a. current interest rates. b. the applicant’s credit rating. c. the value of the property being purchased. d. the source of the down payment funds.

_____9. Most lending institutions believe that a person can afford a monthly payment of about ______percent of gross income less any long-term debts. a. 25 b. 35 c. 45 d. 55

_____10. A ______mortgage allows a person to borrow on the paid-up value of a home. a. conventional b. growing equity c. second d. share appreciation