Study (Principles 1) Concepts of Home Ownership "Part One" Flash Cards

 
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(Principles 1) Concepts of Home Ownership "Part One"

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Loan balance on real estate investment cannot exceed market value of investment T/F?
F
Specific mortgage loan programs may allow low-income purchasers or first-time buyers to do which to interest or principal payments?
Defer
Police and fire protection, water, and many public utilities (gas, power, and telephone service, for instance) add to an area's desirability, as do various quasi-municipal authorities such as ports, public transportation, antipollution practices, and forest preserves. Which of the five major factors influencing the choice of property location does this statement describe?
Governmental Structure
Because prices have already been discounted to reflect lack of newness, purchasing an older home may result in riskier, more speculative investment T/F?
F
Which are comprised of prefabricated components that arrive on-site in units preassembled at factory and are then lifted into place with crane?
Modular Homes
Which often combine office space, stores, theaters, and apartment units and are popular in metropolitan areas?
Highrise Developments
Mortgaged property represents an investment because it is the purchase of an asset that has potential for
Profit
New home may be considerably more expensive than preowned home if the preowned market is oversupplied T/F?
T
Determining prospective homebuyer's ability to pay depends on which factor?
All of the Above
Buyer's being unable to recoup added costs for special features when property is resold is potential disadvantage of
Building a new home to personal qualifications
Which may merge such diverse land uses as housing, recreation, and commercial units into one self-contained development?
Planned Unit Developments (PUDS)
Because prices have already been discounted to reflect lack of newness, purchasing an older home may result riskier, more speculative investment T/F?
T
Which are existing structures that have been altered to become appropriate for residential use as either rental or condominium units?
Converted-Use Properties
In addition to residential units, which often provide shopping and recreational opportunities and, in some cases, health care facilities?
Retirement Communities
Ownership of condominium, which shares party walls with other units, involves which kind of ownership of common facilities such as halls, elevators, and surrounding grounds, as undivided interests?
Shared
Qualifying ratio used to determine prospective homebuyer's ability to pay depends solely on number of dependents and credit history T/F
F
Factors influencing home ownership include mortgage terms, ownership expenses, ability to pay, type of home, location, and which of the following?
All of the Above
As owner reduces debt on property, equity in property increases T/F?
T
Factors influencing home ownership include which of the following?
All of the Above
Which is constructed on lots that are owned by individual homeowners and may either be connected by common wall or be freestanding homes separated by airspace and attached to each other by exterior shingles and brick or siding?
Townhouses
Schools, colleges, places of worship, libraries, theaters, museums, zoos, sports attractions, and parks all constitute powerful sociological attraction to given community. Which of the five major factors influencing choice of property location does this statement describe?
Cultural Advantages
Lenders have traditionally used formula that monthly cost of buying home (PITI payment) should NOT exceed what percent of borrower's gross monthly income?
25 to 28
Which type of housing is delivered on permanent chassis to purchaser's home site where it is connected to gas, water, and electricity?
Manufactured Homes
Five major factors concerning location of property include: (1) employment opportunities, (2) cultural advantages, (3) governmental structure, (4) social services, and (5) transportation T/F?
T
One of the ownership expenses that homeowner faces is loss of investment return that could be realized if money used to purchase home were available for income-producing investments T/F?
T
As owner reduces debt on property, equity in property decreases T/F?
F
Mortgaged property represents an investment because it is the purchase of an asset that has potential for profit
T/F?
T
Adjustable-rate loans have higher initial interest rates and make it more difficult for many buyers to qualify for mortgage loan T/F?
F
Ownership of condominium, which shares party walls with other units, involves shared ownership of common facilities such as halls, elevators, and surrounding grounds, as undivided interests T/F?
T
A new home may be considerably less expensive than a preowned home if the preowned market is oversupplied T/F?
T
Avoiding uncertainties concerning area development, future depreciation, and flaws in initial construction is a potential advantage of
Purchasing a pre-owned home
Market value of real estate investment can decrease as well as increase T/F
T
Before purchasing home, buyer must determine whether annual debt is sufficient to meet all costs of home ownership T/F?
F
Buyer preferences influence marketability of particular property T/F?
T
Factors influencing housing affordability include mortgage terms, ownership expenses, ability to pay, governmental structure, and investment considerations T/F?
F
Qualifying ratio used to determine prospective homebuyer's ability to pay depends on such factors as amount of down payment, potential future earnings, number of dependents, credit history, and general economic conditions T/F?
T
In time-share occupancy, multiple purchasers share ownership of single property and generally each owner is entitled to occupy property for definite, fixed period of time each year T/F?
T
In addition to the type of housing buyer wishes to purchase (condominium, single-family home, town house, etc.), it is important to also consider benefits of buying preowned home, a ready-built new home, or new home built to specifications T/F?
T
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