UGBA 135 Assignment 5 Part 1 Questions with Answers 2023 | 2024 (100% Correct and Verified) Personal Financial Management

UGBA 135 Assignment 5 Part 1 Questions with Answers 2023 | 2024 (100% Correct and Verified) Personal Financial Management. A first mortgage is all of the following except It is secured by a piece of property It has first claim on the property It guarantees payment of a second mortgage A legal loan document 11/24/2020 Assignment #5: Part 1 (Multiple Choice) : UGBA 135 - LEC 2 - Personal Financial Management (Fall 2020) 2/30 Question 2 1 / 1 pts An additional loan taken against a property is called First mortgage Second mortgage Collateral Equity Question 3 1 / 1 pts In real estate, equity is The amount of the outstanding loans The difference between the first mortgage and the second mortgage The difference between the value of the property less all debts against the property The amount of the first mortgage Question 4 1 / 1 pts 11/24/2020 Assignment #5: Part 1 (Multiple Choice) : UGBA 135 - LEC 2 - Personal Financial Management (Fall 2020) A home equity loan is A one-time lump sum loan Subject to a variable rate of interest Secured by the mortgage on the property All of the above Question 5 1 / 1 pts A home equity line of credit is Secured by the mortgage on the property A revolving line of credit All of the above Subject to a variable rate of interest Question 6 1 / 1 pts Private mortgage insurance All of the above May or may not be tax deductible Costs about one percent of the loan amount per year 11/24/2020 Assignment #5: Part 1 (Multiple Choice) : UGBA 135 - LEC 2 - Personal Financial Management (Fall 2020) Is required if your equity is less that 20% Question 7 1 / 1 pts Rapid Rescore can help achieve the following Update your credit file Reduce property taxes Get a longer term mortgage None of the above Question 8 1 / 1 pts Refinancing a mortgage may be done to: Lower the monthly payment Consolidate first and second mortgages Lower interest rates All of the above Question 9 1 / 1 pts 11/24/2020 Assignment #5: Part 1 (Multiple Choice) : UGBA 135 - LEC 2 - Personal Financial Management (Fall 2020) The loan-to-value ratio (“LTV”) is when the value of the loan is related to: The amount of government subsidy The cost of refinancing The value of the house The value of a short sale Question 10 1 / 1 pts The government subsidizes home ownership through the tax code by allowing a tax deduction for: Maintenance Repairs Property taxes Homeowner's insurance Question 11 1 / 1 pts Negative amortization occurs when there is: When a loan is more than 3 times your income A short sale 11/24/2020 Assignment #5: Part 1 (Multiple Choice) : UGBA 135 - LEC 2 - Personal Financial Management (Fall 2020) None of the above A refinancing Question 12 1 / 1 pts The “benchmark” home loan is 20% down payment and a: 10-year loan, interest only payments 15-year loan with an adjustable interest rate 30-year loan with a fixed rate of interest 20-year loan with an adjustable interest rate Question 13 1 / 1 pts When the property is sold, the real estate commission is usually paid by: Shared by the purchaser and the seller The seller of the property None of the above The purchaser of the property Question 14 1 / 1 pts 11/24/2020 Assignment #5: Part 1 (Multiple Choice) : UGBA 135 - LEC 2 - Personal Financial Management (Fall 2020) In a short sale The current market value of the house is more than the amount of the loan The current market value of the house is less than the amount of the loan The current market value of the house is less than the original purchase price The current market value of the house is more than the original purchase price Question 15 1 / 1 pts In a foreclosure None of the above The owner the must have filed bankruptcy The lender legally repossesses the house The owner must not have filed bankruptcy Question 16 1 / 1 pts Second liens on a piece of property include 11/24/2020 Assignment #5: Part 1 (Multiple Choice) : UGBA 135 - LEC 2 - Personal Financial Management (Fall 2020) Home equity lines of credit All the above A second mortgage Home equity loans Question 17 1 / 1 pts If you sell a house at a loss None of the above The loss is tax deductible The loss is tax deductible, but only up to $3,000 per year The loss is not tax deductible Question 18 1 / 1 pts When purchasing a house, the purchase price includes None of the above Inspection costs Closing costs