Pop Quiz

True or False:

1. It's okay on your mortgage loan application to have several credit cards with high balances, as long as you've been paying them off on time.
True False

2. Being late by 30 days on your bills could seriously affect your chances of qualifying for a home mortgage loan.
True False

3. Mortgage interest payments are not tax deductible.
True False

4. Homeowner insurance and private mortgage insurance are not tax deductible.
True False

Multiple Choice:

5. Generally speaking, you should plan to stay in your home for at least __ year(s) if you plan to buy it:

a. One year
b. Two years
c. Three years
d. Five years

6. The advantages of owning a home are:

a. Ability to get loans using the home's value as collateral
b. Ability to deduct property tax payments.
c. Sense of home and community
d. All of the above

7. Trade-offs of owning a home are:

a. More expensive than renting
b. Cost and time of upkeep
c. Greater financial risk
d. Mandatory assessments for street parking

8. Items in the monthly payment include:

a. Loan principal and interest
b. Homeowners insurance
c. Property tax
d. All of the above

9. Mortgage lenders consider which of the following in determining your eligibility for a home mortgage loan:

a. Your job's history, income and stability
b. Your payment history on your other loans
c. Savings for the down payment
d. The quality of neighborhood where you currently live

10. Deciding whether or not to buy a home is a matter of which of the following:

a. Being ready financially
b. Being ready for the responsibility
c. Understanding the benefits and risks
d. All of the above

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