unit 3 Flashcards
the national flood insurance program is a program within
the federal emergency management agency (FEMA)
to be eligible for an exclusion of capital gains income, a homeowner must have owned the residence and occupied it as a primary residence for how long before the sale or exchange?
at least two of five years
variations in flood insurance rates are based on
decisions made by congress
a first-time homebuyer may make a penalty-free withdrawal from an IRA of up to
$10,000
one of the primary goals of the National Flood Insurance Program (NFIP) is to
reduce flood damage through a community’s adopting and enforcing floodplain management regulations
a house cost $100,000 five years ago, has depreciated by $5,000, and will cost $150,000 to rebuild today. if the homeowner has a full-replacement coverage policy that meets coinsurance requirements, what would the insurance pay if the house burns completely to the ground?
$150,000
if a mortgage is secured by a property itself, who will likely demand that the structure be insured?
regulations of the lending institution
as the owner reduces the debt on a property, which of the following increases?
equity
using conservative lending practices, a loan officer would most likely use a front-end ratio of
28%
in addition to residential units, which type of property often provides shopping and recreational opportunities and, in some cases, health care facilities?
retirement communities
which of the following are guaranteed to show a positive return on investment?
a. none of these
b. a detached single-family home
c. a condominium
d. a town house
none of these
the percentage used in the formula for calculating a buyer’s payment on all debts, including the house payment, installment loans, and credit card debt, is called
the back-end ratio
purchasing a national flood insurance policy would be optional for owners of
residential properties that have flooded only once, with a loss of no more than $1,000
what is an insurance endorsement?
an extension of coverage
federal flood insurance policies are available on which types of properties?
residential, commercial, industrial, and agricultural
factors influencing home ownership include mortgage terms, ownership expenses, ability to pay, type of home, location, and what?
potential for profit
tax deductions
investment considerations
in a time-share occupancy, the owners pay the purchase price of their individual shares plus
an annual maintenance fee
is there a site on the internet is guaranteed to have a list of all the homes for sale, their current prices, and the latest information about interest rates?
no
when the vast majority of homeowners sell their homes, do they end up paying large amounts of tax on their capital gains?
no, the vast majority of sellers to do not exceed the exclusion amount
which type of home is composed of prefabricated components that arrive on site in units preassembled at the factory and then lifted into place with a crane?
modular homes
an owner of which kind of property does not own the unit itself but owns shares of stock in the corporation that holds title to the building?
cooperative
insurance companies settle property insurance claims on the basis of which of the following?
full-replacement coverage
actual cash value
proration according to the coinsurance clause
mortgaged property represents an investment because it is the purchase of an asset that has potential for
profit
if a tree falls on a house with homeowners insurance, who gets paid?
the borrower/owner of the property
