TRUE OF FALSE QUESTIONS.

1 - When a loan is paid off over a shorter period of time, the total interest costs are reduced.

2- The term cooperative describes a method of ownership for housing rather than a type of building.

3- The process in which the lender sues the borrower to prove default and asks the court to order the sale of the property to pay the debt is called foreclosure.

4- The damage deposit is an amount paid in advance to a landlord for normal wear and tear on rental property.

5- One point is equal to 1 percent of the price of the house.

6- An original tenant who subleases to another tenant is automatically released from financial responsibility for future rent payments.

7- Most of the monthly payment during the early years of a mortgage loan goes for principal repayment.

8- A private short sale occurs when a home sale is negotiated with the lender at a price below the actual balance of the debt.

9- In most jurisdictions, landlords are prohibited from harassing tenants who report violations of building codes or other tenant rights.

10- An escrow account is a special account at a financial institution where funds are held until they are paid to a third party.

11- In case of default, the second mortgage lender is paid before the first mortgage is satisfied.

12- If you pay interest to borrow money from a family member to make the down payment on a home, you can only deduct that interest from your taxes if the down payment loan is secured by a lien on the property.

13- Condominium owners enjoy greater tax advantages than cooperative owners since cooperative owners cannot deduct interest and property tax payments.

14- All homes for sale carry some type of implied warranty.

15- Three factors affect the monthly payment on a mortgage loan: the amount borrowed, the interest rate charged, and the time period of the loan.

16- A price-to-rent ratio above 15 can mean that the prices for homes in a community are inflated.