PFM: CHAPTER 22 QUESTIONS &
ANSWERS
The highest price that the property can be sold for based on the current economy. -
ANSWER Market Value
An estimate of worth based on structure, size, features, and quality compared to similar
homes. - ANSWER Appraised Value
The value designed to your property similar homes for tax calculations. - ANSWER
Assessed Value
An estimate of Value to help you set the selling price using comparable properties
(comps). - ANSWER Estimated Value
The difference between the market value of property and what is owed on it.
-The value of most homes appreciates over time.
-Increases in value of home.
-Decreases in debt. - ANSWER Equity
What are the advantages of owning a home? - ANSWER -Neighborhood Associations-
Groups of home owners that meet and work to set quality of life standards for the area.
-Tax Savings-Mortgage interest is tax deductible and so are property taxes.
What are the different types of loans? - ANSWER -Conventional Loan-No Government
backing and it is only offered by commercial bank/mortgage brokers with a 10% to 30%.
-Federal Housing Administration-Government sponsored so it's less risky with a
monthly insurance premium and a 3% down payment (available only to first time buyers,
veterans, and low income buyers).
Reserve account where money is put aside for property taxes and insurance . -
ANSWER Escrow Account
Used to lower mortgage interest rate where one pony Raul's one percent of loan
amount. - ANSWER Discount Points
Mortgage loan fee charges by the bank. - ANSWER Loan Origination Fee
Why is a real estate agent good to use for home buying? - ANSWER -Agents know the
market.
-Get pre-qualified by a mortgage company.
-Agents earn 5% to 7% commission.
-Agents have access to the multiple listing service.
ANSWERS
The highest price that the property can be sold for based on the current economy. -
ANSWER Market Value
An estimate of worth based on structure, size, features, and quality compared to similar
homes. - ANSWER Appraised Value
The value designed to your property similar homes for tax calculations. - ANSWER
Assessed Value
An estimate of Value to help you set the selling price using comparable properties
(comps). - ANSWER Estimated Value
The difference between the market value of property and what is owed on it.
-The value of most homes appreciates over time.
-Increases in value of home.
-Decreases in debt. - ANSWER Equity
What are the advantages of owning a home? - ANSWER -Neighborhood Associations-
Groups of home owners that meet and work to set quality of life standards for the area.
-Tax Savings-Mortgage interest is tax deductible and so are property taxes.
What are the different types of loans? - ANSWER -Conventional Loan-No Government
backing and it is only offered by commercial bank/mortgage brokers with a 10% to 30%.
-Federal Housing Administration-Government sponsored so it's less risky with a
monthly insurance premium and a 3% down payment (available only to first time buyers,
veterans, and low income buyers).
Reserve account where money is put aside for property taxes and insurance . -
ANSWER Escrow Account
Used to lower mortgage interest rate where one pony Raul's one percent of loan
amount. - ANSWER Discount Points
Mortgage loan fee charges by the bank. - ANSWER Loan Origination Fee
Why is a real estate agent good to use for home buying? - ANSWER -Agents know the
market.
-Get pre-qualified by a mortgage company.
-Agents earn 5% to 7% commission.
-Agents have access to the multiple listing service.
