Cwmc Module 17: Home Competency Test

15 Questions | Total Attempts: 37

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Module Quizzes & Trivia

This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Home Module (Module 17) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to begin the next Module. Correct answers required for passing grade: 13/15


Questions and Answers
  • 1. 
    Upon completing Module 17 (Home), Money Coaches will be able to step employees through home buying and selling decisions by arming them with _______ they may never hear from realtors.
    • A. 

      3 Web sites

    • B. 

      The best property choices

    • C. 

      ERISA guidelines

    • D. 

      The information

    • E. 

      Legal jargon

  • 2. 
    Which of the following are considered pros when deciding to rent versus buy a home? (check all that apply)
    • A. 

      The landlord pays the cost of repairs and maintenance

    • B. 

      You may not receive income tax savings for rent

    • C. 

      Move-in costs are generally less and are fairly minimal

    • D. 

      You will not benefit from potential gains in the price of the home

    • E. 

      Rent may rise with inflation

  • 3. 
    An employee is trying to decide whether or not to withdraw savings to use as a down payment on a home. As a Money Coach, which questions could you ask to help make this decision? (check all that apply)
    • A. 

      Can you afford not to have this cash if there is an emergency and you need funds immediately?

    • B. 

      Are there other financing options or buyer assistance programs that would allow you to hold on to some of your cash?

    • C. 

      Can you wait to purchase a home at a later date and continue to build up your savings?

    • D. 

      How quickly could you rebuild your savings?

  • 4. 
    Which of the following items does NOT relate to buying or selling a home?
    • A. 

      Reducing home improvement costs

    • B. 

      Access to an EAP Provider

    • C. 

      Investing in retirement or vacation homes

    • D. 

      The pros and cons of auctions

    • E. 

      The value of picking the “right” location

  • 5. 
    Which of the following tax strategies would you suggest a consumer investigate before purchasing a home? (check all that apply)
    • A. 

      Check city or state sales tax rates for local hotels

    • B. 

      Evaluate earnings after taxes if you were to put the down payment into another investment instead

    • C. 

      Check property tax rates in the area

    • D. 

      Figure the amount of tax benefits/write-offs you may receive from owning a home

    • E. 

      Request a one-on-one meeting with an IRS agent prior to final closing date

  • 6. 
    There are many guidelines to consider in a Money Coaching response. Of the following choices, which would you rate as the most important?
    • A. 

      Using the correct style of bullet

    • B. 

      Thorough content

    • C. 

      Precise margins

    • D. 

      Style

    • E. 

      Appropriate document length

  • 7. 
    Which law makes it illegal to deny housing to a tenant on the grounds of race, color, sex, religion, disability, family status, or national origin?
    • A. 

      Title 11 of the United States Federal Statutory Code

    • B. 

      Americans with Disabilities Act

    • C. 

      The Fair Housing Act

    • D. 

      Architectural Barriers Act

    • E. 

      Civil Rights Act of 1964

  • 8. 
    When could it make sense for a homeowner to use an inheritance to pay off his/her mortgage?
    • A. 

      If the homeowner is approaching retirement and doesn't want a mortgage payment each month

    • B. 

      When the interest the homeowner pays on the home is greater than the return he/she could get if the money was invested elsewhere

    • C. 

      If the security of not having a mortgage is more important to the homeowner than having that money in the bank or some type of investment

    • D. 

      All of the above

    • E. 

      It never makes economic sense to use a lump-sum inheritance to pay off a mortgage

  • 9. 
    If an individual decides that now is the best time to purchase a home, which of the following would you NOT suggest as an approach to save money on the purchase?
    • A. 

      If you really love the house, it’s okay to pay more for it than market value

    • B. 

      Find a house that fits your needs

    • C. 

      Determine how much you can afford

    • D. 

      Stick to your price range even if it means losing the home to someone else

    • E. 

      In a buyer’s market, make a very low offer even if you really want the home

  • 10. 
    Which of the following expenses applies more to renting than to home ownership?
    • A. 

      Property taxes

    • B. 

      Repairs and maintenance

    • C. 

      Sewer fees

    • D. 

      Security deposit

    • E. 

      Interest on mortgage payments

  • 11. 
    Location, location, location! Realtors say this is primarily what sells houses. Of the following statements, which are additional tips or strategies buyers should consider when purchasing a home? (check all that apply)
    • A. 

      Check out neighborhood code enforcement: boats, commercial vans, property improvements, etc.

    • B. 

      The best investment is generally the biggest, most expensive house on the block

    • C. 

      Buyers don’t need a home inspection if their agent is familiar with the home and the repairs that may be required

    • D. 

      It’s generally safe to live in an area even if it is prone to flooding when it rains

    • E. 

      Avoid purchasing a home within 2 miles of a landfill, train tracks, or near a water treatment plant

  • 12. 
    Which of the following statements about realtors are TRUE?
    • A. 

      The realtor for the seller is required by law to disclose the lowest price the homeowner will accept

    • B. 

      The realtor for the seller must reveal why the homeowner is selling the home

    • C. 

      State Realty Boards require that realtors must recommend what they think is best for the client

    • D. 

      All of the above are true

    • E. 

      None of the above are true

  • 13. 
    When might it NOT make sense for homeowners to pay off their mortgages?
    • A. 

      If the interest they pay is one of the few tax deductions they can claim each year

    • B. 

      When borrowing against the new equity to pay for debt reduction, cars, trips, etc. may be too tempting

    • C. 

      When the amount of money that can be earned by investing those dollars elsewhere is greater than the interest the homeowner is paying on the home

    • D. 

      All of the above

    • E. 

      None of the above

  • 14. 
    As a Money Coach, which of the following often-overlooked expenses would you remind new homebuyers to consider when purchasing a home? (check all that apply)
    • A. 

      Real estate taxes

    • B. 

      Insurance costs

    • C. 

      Landscaping expenses

    • D. 

      Home repairs, window treatments, exterior upkeep, etc.

  • 15. 
    Currently, the homebuyer tax credit available under the American Recovery and Reinvestment Act of 2009:
    • A. 

      Is only available to new home buyers or buyers who have not owned a home in the past 3 years

    • B. 

      Can only be used for the tax payer's primary residence

    • C. 

      Must be repaid if the homebuyer sells the home within 3 years

    • D. 

      Is equal to 15% of the purchase price, up to $8,000

    • E. 

      Does not apply if the home is purchased from a family member