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This Chapter Quiz includes 15 multiple-choice questions. You must answer 10 out of 15 questions correctly (70%) in order to pass.

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1. Many factors can increase or reduce monthly mortgage payments. Assume that a buyer is planning to buy a $150,000 home, and any loan payments will not include closing costs or insurance. Which scenario will produce the highest monthly payment?

2. Candice wants to buy a new home. She doesn't have a lengthy credit bureau file and is looking for a loan vehicle that will not require a large down payment. She is surprised to learn that the ............ considers non-borrower income and nontraditional credit sources when reviewing mortgage applications.

3. Patty is working with a commercial real estate investor. While touring an older manufacturing property, the client mentions much of the equipment will have to be updated in a few years because it is fast becoming obsolete. Which depreciation method did Patty most likely bring up during this discussion because it depreciates assets based on wear and tear, obsolescence, and damage?

4. Which list below covers the three most common homeowner policy coverage areas?

5. Most homeowners insurance policies cover specific events that fall into two different categories:

6. George has done some research about insurance policies online. He is planning to add more rental properties to his portfolio this summer, and asks his agent if she knows whether he will qualify for replacement value cost (RVC) NFIP coverage. His agent, Paula tells him “no,” because...?

7. Carolyn found a home that she can afford. It is not in a known flood plain, and she doesn't want to buy flood insurance since her mortgage lender doesn't require it. Her agent recommends she purchase flood insurance, because...?

8. One benefit of buying a home is...?

9. Which statement is true about homeowners and insurance coverage in the United States?

10. Denis bought a home fresh out of college from his parents for $10,000. He is ready to sell the home now, 20 years later, which substantially increased in value. He is concerned about paying capital gains taxes. His real estate agent told him that the long-term tax rate for most homeowners ranges from zero to ............, depending on several factors, and referred him to a tax accountant to discuss his particular situation in detail.

11. An investor has several multi-family buildings he wants to sell in the next year. His real estate agent tells him that he can force the appraised value to rise by...?

12. The most common type of residential dwelling in the United States is the...?

13. Which federal agency oversees and manages the National Flood Insurance Program (NFIP)?

14. Bill, who is unmarried, is selling his rental home and plans to put off buying another home for five years. He earns $325,000 annually, putting him in the highest tax bracket at 23.8 percent. If he nets $200,000 on the transaction, how much will his tax liability be for the capital gain portion of his return only?

15. Richard recently bought a condominium. When he contacted an insurance agent, he was surprised to learn that there are insurance policies specifically for condo owners. These policies provide peril coverage for...?