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Chapter 07
Selecting and Financing Housing
True / False Questions
1.
With a downpayment of at least 5%, lenders use 33% of monthly gross income as a guideline
for PITI (principal, interest, taxes, and insurance).
True False
2.
The Real Estate Settlement Procedures Act (RESPA) requires that loan applicants be given
an estimate of the closing costs after the actual closing.
True False
3.
Lease-to-purchase and rent-with-option allow homeowners to become renters.
True False
7-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4.
Renter’s insurance protects the tenant by covering damage or theft to clothing, furniture, and
stereo equipment.
True False
5.
Your lifestyle affects your housing decision.
True False
6. Your decision to rent or to buy your residence should be based solely on lifestyle factors.
True False
7. An advantage of renting is pride of ownership.
True False
8. Angela wanted to rent an apartment, so her landlord required her to sign a lease. The lease is
a legal document that defines the conditions of her rental agreement.
True False
9. A landlord has the right to sublet an apartment.
True False
10.
Lenny the landlord has the right to take legal action against Tina the tenant for nonpayment
of rent or destruction of property.
True False
7-2
11. When Brett's apartment lease ends, he should receive his entire security deposit back even
though the carpet has been damaged while he was living there.
True False
12. Rental insurance isn't important since the landlord's insurance on the building includes
coverage on all tenants' belongings.
True False
13. A disadvantage of home ownership is the deductibility of mortgage interest and real estate
tax payments.
True False
14. A duplex is a house with two or more separate dwellings.
True False
15. A condominium is a form of housing in which the units in a building are owned by a nonprofit
organization.
True False
16.
A handyman's special is a home that needs work and that you are able to get at a lower price
.
True False
17.
When interest rates are high and the demand for homes is low, prices of homes will likely be
higher .
True False
7-3
18. Private mortgage insurance is usually required if the down payment for a home is less than
30%.
True False
19. An approved mortgage application usually locks in an interest rate for 60-120 days.
True False
20.
As interest rates increase, more people are able to afford the cost of an average-priced
home.
True False
21.
Mortgage points are paid to the lender at the end of the mortgage.
True False
22. The most common conventional mortgage is the 20-year ARM.
True False
23. Most new mortgages are assumable.
True False
24.
Merrill bought a house and applied for a loan through the VA (Veterans Administration). The
VA will provide the mortgage money .
True False
7-4
25.
Most low- and middle-income people can qualify for a VA-guaranteed loan.
True False
26. An advantage of a second mortgage is that the interest rate subsidy from the home builder
reduces the mortgage payments during the first few years of the loan.
True False
27. An advantage of a buy-down is that the interest rate subsidy from the home builder reduces
the mortgage payments during the first few years of the loan.
True False
28. If you pay an extra $100 per month on your mortgage, your total loan principal will decrease
and your total interest will remain the same.
True False
29.
At the closing of a home purchase, the buyer and seller conducts a walk-through of the
property.
True False
30. The purpose of an escrow account is to pay the points at closing.
True False
31. Home improvements will definitely increase the selling price of a house.
True False
7-5
32.
Each year about 50% of home sales are made by the home’s owners.
True False
33.
A real estate agent can help screen potential buyers to determine whether they will qualify
for a mortgage..
True False
34. If your home is assessed for $200,000, the market value of the home should be less than
$200,000.
True False
Multiple Choice Questions
35. Marcus can afford a monthly mortgage payment of $900. If he is eligible for a 30-year, 5%
mortgage (where the mortgage factor is 5.37), how much of a mortgage loan can he afford?
A. $150,000
B. $167,597.77
C. $200,100.75
D. $324,000.00
E. $510,015.00
7-6
36. Which of the following is NOT correct?
A.
Renting is usually less costly in the short run.
B. Home ownership usually has long-term financial advantages.

C. Lifestyle and financial factors should be analyzed to determine if you should rent or buy.
D. Traditional financial guidelines suggest that your home should cost about five times your
annual income.
E. Renting offers mobility.
37. Which of the following is a disadvantage of renting?
A. Renters have fewer responsibilities than home owners.

B. Tenants cannot take tax deductions for mortgage interest and property taxes.
C. Renters usually do not have to be concerned with maintenance and repairs.
D. Taking possession of a rental unit is less expensive than buying a home.
E. Renting can be more convenient for those who move frequently.
38. Which of the following is an advantage of renting?
A. Noise from parties may be monitored closely.

B.
Renters have fewer responsibilities for maintenance than home owners.
C. Tenants cannot take tax deductions for mortgage interest and property taxes.
D.
Tenants may be subject to restrictions regarding remodeling .
E.
Tenants may have restrictions regarding pets.
7-7
39. Most tenants sign a lease. Which of the following is part of a lease agreement?
A. The amount of the down payment.

B. The conditions under which the landlord may enter the apartment.
C. The interest rate for a lease loan.
D. The name and address of the buyer.
E. The sale date.
40. The opportunity to have another person take over rent payments and live in the rental unit is
called (a)
A. Lease.
B. Lessee.
C. Lessor.
D. Rental agreement.
E. Subletting.
41. A legal document that includes information about the due date of monthly rent is called a
A. Lease.
B. Lessee.
C. Lessor.
D. Rental statement.
E. Sublease.
42. The owner/landlord is known as the
A. Lease.
B. Lessee.
C. Lessor.
D. Renter.
E. Sublease.
7-8
43. The tenant is the
A. Lease.
B. Lessee.
C. Lessor.
D. Owner.
E. Sublease.
44. This provides the tenant protection from rent increases.
A. Lease
B. Lessee
C. Lessor
D. Rental statement
E. Sublease
45. This gives the landlord the right to take legal action against a tenant for nonpayment of rent
or destruction of property.
A. Lease
B. Lessee
C. Lessor
D. Rental statement
E. Sublease
7-9
46.
Which of the following expenses is NOT usually incurred by a tenant?
A. Security deposit.
B.
Utilities (other than water).
C. Renter's insurance.
D.
Property taxes.
E.
None of these are incurred.
47. Which of the following is NOT a benefit of home ownership?
A. Stability of residence
B. Personalized living location
C. Deductibility of mortgage interest
D. Deductibility of real estate taxes
E. Maintenance and costs of repairs and home improvements
7-10
48. Donald wanted to buy a house in the country, so he sought advice from his cousin Evan. Evan
explained the advantages and disadvantages of home ownership; however, he had some
information incorrect. Which of the following is incorrect?
A. An advantage is that Donald can deduct mortgage interest and real estate taxes.
B. A disadvantage is that Donald is responsible for maintenance and costs of repairs and
home improvements.
C.
An advantage is that the down payment required is less than the security deposit for a
rental.
D.
A disadvantage is that real estate taxes are a major expense for homeowners.
E. An advantage is that Donald can paint his house bright purple with green trim to match his
college's colors.
49.
Which of the following is a form of housing in which the owners pay a monthly fee for
maintenance of the common areas?
A. Condominium
B. Cooperative housing
C. Manufactured home
D. Single-family dwelling
E. Apartment
7-11
50.
Which of the following is a form of housing in which the units are owned by a nonprofit
organization?
A. Condominium
E. Townhouse
51. Which of the following is a form of housing in which shareholders purchase stock to obtain
the right to live in a unit of the building?
A. Condominium
E. Townhouse
52.
Diane purchased her house and had it assembled before it was moved to her lot. She
purchased a
A. Condominium.
B. Cooperative housing.
C. Manufactured home.
D. Single-family dwelling.
E. Townhouse.
7-12
53. Elaine purchased her living unit in a building with five other separate units. She purchased a
A.
Prefabricated home.
B. Duplex.
C. Manufactured home.
D. Single-family dwelling.
E. Townhouse.
54.
Paul and Lora built their home. When they researched contractors, they considered all of the
following except
A. Contractor's reputation and experience.

B.
Contractor's relationship with suppliers and carpenters.
C. Payment arrangements during construction.

D. Time and payment schedules.
E. Contractor's property tax payments during construction.
55. Frank and Diane want to buy a house. Which of the following do they need before they
purchase a house?
A. Down payment.
B.
Renter’s insurance.
C. Mortgage interest.
D. Mortgage principal.
E.
Handyman
7-13
56.
Georgina and Henry have a family and are looking at houses. Which of the following is
correct?
A.
A "handyman's special" will be set at a higher price than one that is in good condition.
B. They should assess the school system in the area they want to live.
C. The amount they can afford for housing will be primarily determined by the down payment.
D.
Their first home should contain all the features desired.
E.
They should complete all repair work themselves to increase costs..
57. What should a home buyer consider when evaluating a house?
A. Zoning laws.
B. Location of businesses and future construction projects.
C. School system.
D. Property values of the community.
E. All of these should be evaluated.
7-14
58. When Ingrid was selling her house, she contacted Gabe, her real estate agent, to help her
with the sale. Gabe's services included all of the following except
A.
Providing advice on features to highlight.
B.
Screening potential buyers to determine whether they will qualify for a mortgage.
C.
Suggesting a selling price .
D. Showing Ingrid's home to potential buyers.

E. Home appraisal.
59. Jim wants to make an offer to buy an older house. At this point, he should
A. Move into the house.

B. Set up a home inspection.
C. Contact the seller to purchase his lawn tools.
D. Close the purchase transaction.
E. Sign his mortgage papers.
60. Kelly selected a home and submitted an offer to the seller.
A. The seller must accept her offer.

B. Her offer must have been for the asking price.
C. The seller's price is affected by Kelly's need to buy.
D.
The seller may reject the offer and choose to provide a counteroffer.
E. Kelly will receive earnest money when she presents the offer.
7-15
61. Madeline wants to purchase a larger house. However, she has not yet sold her current home.
She may want to include a(n) ________ in her offer.
A. appraisal
B. contingency clause
C. dual agent
D.
counteroffer
E. purchase agreement
62.
When Nancy buys her house, the mortgage company will usually conduct a(n)
A. Appraisal.
B. Contingency clause.
C. Dual agent.
D. Earnest money.
E. Purchase agreement.
63. Opal is a real estate agent who represents the buyer as well as the seller. In some states, the
buyers are required to sign a disclosure acknowledging that they are aware that Opal is
working as a(n)
A. Appraisal.
C. Dual agent.
D. Earnest money.
E. Purchase agreement.
7-16
64.
Pauline just submitted an offer on her dream home. As evidence of good faith , she also
included a(n)
A. Appraisal.
C. Dual agent.
D. Earnest money.
E.
Counteroffer
65. Private mortgage insurance
A. Cannot be avoided.
B. Is part of all mortgages.
C. Is usually required if the down payment is less than 25%.
D.
Must be terminated automatically when the homeowner’s equity reaches 22% of the
property value at the time the mortgage was executed.
E. Protects the buyer from financial loss if the value of the home increases.
66. Major factors that affect the affordability of your mortgage include all of the following except
A. The amount available for a down payment.

B. Current mortgage rates.
C. Income.
D. Length of the loan.
E. Size of the home.
7-17
67.
Quinn applied for a loan. He provided information about his finances and the home he plans
to purchase. Results of the affordability mortgage calculation included all of the following
except
A. Expected maintenance costs.

B. The home purchase price he can afford.
C. The monthly mortgage payment he can afford.
D. The mortgage amount he can afford.
E.
None of the above are correct.
68. Rebecca paid extra money to reduce her mortgage interest rate. That extra money is called
A. Amortization.
B. Escrow.
C. Lock.
D. PMI.
E. Points.
69.
Ricky has a conventional mortgage. He can monitor the reduction of his loan balance through
his payments by using _____ information.
A. amortization
B. escrow
C. lock
D. PMI
E. points
7-18
70.
When Sam applied for a loan, he was assured that his rate would not change if he closed
within 30 to 90 days. Sam had a(n) ______ on the interest rate.
A. amortization
B.
escrow account
C. lock
D. PMI
E. points
71. Trenton wants to buy a house but can provide only a 10% down payment. He probably will be
required to have
A. Amortization.
B.
Escrow account.
C. Lock.
D. PMI.
E. Points.
72.
As a result of being an armed services veteran, Dan should be eligible for a(n)
A. ARM.
B. FHA loan.
C. Negative amortization.
D. Payment cap.
E. VA loan.
7-19
73.
Ursula wants to have an interest rate that can increase or decrease during the life of her
loan. She should look for a(n)
A. ARM.
B. FHA loan.
D.
Second mortgage
E. VA loan.
74.
Paul is looking for a low-interest, low-downpayment loan for his first home, but he is not a
veteran.. He might be eligible for a(n)
A. ARM.
B. FHA loan.
D. Payment cap.
E. VA loan.
7-20
75.
Veronica has had a variable-rate mortgage for several years. Unfortunately, the monthly
mortgage payments have not covered her interest owed. As a result, her home equity is
decreasing because of
A. ARM.
B. FHA loan.
D.
Buy-down.
E. VA loan.
76.
Yvette has a flexible-rate mortgage that limits the amount to which her monthly payments
can rise. This feature is called a(n)
A.
Rate cap
B. FHA loan.
D. Payment cap.
E. VA loan.
7-21
77. If you have an interest rate subsidy from a home builder or real estate developer, you have a
A.
Payment cap.
B. Buy-down.
C.
ARM.
D.
Rate cap.
E. Interest-only mortgage.
78. If you do not pay back any of the loan amount for a portion of the loan period, you have a(n)
A.
FHA loan.
B. Buy-down.
C.
ARM.
D.
Home equity mortgage.
E. Interest-only mortgage.
7-22
79. The primary benefit of a home equity loan is
A. Its limited availability.

B. The deductibility of the loan interest on federal taxes.
C. The required monthly payments.
D.
Tax-free income in the form of a loan.
E.
All of the above are primary benefits.
80. A reverse mortgage
A. Is the same thing as a second mortgage.

B.
Allows a homeowner access to a line of credit program
C. Provides older home owners with tax-free income in the form of a loan that is repaid when
the home is sold or the home owner dies.
D.
All of these are correct.
E.
None of these are correct.
7-23
81.
During the closing for a home purchase , you should
A. Order an appraisal.
B.
Pay all closing costs, settle last-minute details, and sign documents
C. Schedule an inspection of the condition of the home.

D. Sign documents and pay half of the settlement costs.
E. Review zoning laws for the municipality where the home is located.
82. Which of the following is the document that transfers ownership of property from one party to
another?
A. Deed
B. Escrow
C. Mortgage
D. PMI
E. Points
83.
Which of the following is an account used to pay property taxes and homeowner’s insurance?
A. Deed
B. Escrow
C. Mortgage
D. PMI
E. Points
7-24
84. Walt has decided to sell the home he has lived in for 50 years. The house has two bedrooms
on the first floor, a finished basement, and a finished attic with a low ceiling. To prepare his
home for sale, he should
A. Exaggerate the size of his yard.

B. Keep everything "as is."
C. List his house as a three-bedroom.
D.
Take steps to remove excess furniture to make areas look larger.
E. Underestimate the cost of utilities.
85. Lonnie wanted to sell his house but didn't know what price to ask. He should consider all of
the following except
A. Current mortgage rates.

B. Demand in the housing market.
C. His original cost.
D. Recent selling prices of comparable homes in the area.
E. The appraised value of his home.
7-25
86. Which of the following is NOT correct?
A.
Alex's daily maintenance and timely repairs around his home should make it attractive to
potential buyers.
B.
Brenda's new hot tub will probably not increase the selling price.
C.
When showing the home, Caryn's suggestion to open drapes but keep lights turned off to
conserve energy will give her property a positive image.
D.
Darryl's decision to sell his house "by owner" could save him several thousands of dollars
in commission.
E. Eric's listing with a real estate agent will provide him with services such as advice on
features of his home to highlight.
87. Franklin wants to sell his house himself. Which of the following is NOT correct about his
sale?
A. He should create a detailed information sheet and distribute it in stores and other public
areas.
B. He should plan to spend time and effort in the sales process.
C. He should require potential buyers to provide names, addresses, telephone numbers, and
background information.
D. He should show the house only when he is home alone.
E. He should provide information about the availability of financing and financing
requirements.
7-26
88. If you are selling your house by owner, you should still enlist the assistance of
A. A real estate agent to help with the closing.

B. A lawyer or title company to assist with the contract, closing, and other legal matters.
C. Your brother-in-law to aid with legal issues of the sale.
D.
A real estate agent to help with marketing efforts.
E. All of these are correct.
89. Which of the following is NOT correct regarding real estate agents?
A. They can provide advice on features of your home to highlight.

B.
They can suggest a selling price.
C.
They will make other agents aware of your home.
D. They may screen potential buyers to determine if they will qualify for a mortgage for your
home.
E. They require that you conduct your own showings.
90. Given the information here, what is the total cost of renting per year?
A. $14,400
B. $14,700
C. $14,710
D. $150,000
E. $164,700
7-27
91. Crystal is looking for a new apartment. What are her total annual costs associated with
renting?
A. $1,270
B. $12,000
C. $12,250
D. $12,270
E. $162,270
92. Given the information here, what is the annual cost of owning?
A. $17,900
B. $28,200
C. $38,500
D. $300,000
E. $338,500
7-28
93. Brett bought a house five years ago for $150,000. At that time he borrowed $140,000 from his
bank. The house is now worth $162,000. The current value of his mortgage must be no
higher than --- for him to request termination of his PMI policy.
A. $122,000.
B. $126,360.
C. $140,000.
D. $150,000.
E. $162,000.
94. Carrie bought a house five years ago for $150,000. At that time she borrowed $140,000 from
her bank. The house is now worth $162,000. Her PMI will automatically be dropped when her
mortgage balance drops to
A. $117,000.
B. $122,000.
C. $140,000.
D. $150,000.
E. $162,000.
95. Jordan earns an annual salary of $45,000. If a lender uses 33% of monthly gross income as a
guideline for the maximum PITI (principal, interest, taxes, and insurance), what is the
maximum mortgage that Jordan can apply for?
A. $1,237.50
B. $1,485.00
C. $2,475.00
D. $3,750.00
E. $7,500.00
7-29
96. If you have a $150,000 30-year 5% mortgage, how much of your first monthly payment of
$805.50 would go toward interest?
A. $180.50
B. $625.00
C. $665.28
D. $805.50
E. $7,500.00
97. If you have a $150,000 30-year 5% mortgage, how much of your first monthly payment of
$805.50 would go toward principal?
A. $180.50
B. $625.00
C. $665.28
D. $805.50
E. $7,500.00
7-30
Chapter 07 Selecting and Financing Housing Answer Answer Key
True / False Questions
1.
(p. 230) With a downpayment of at least 5%, lenders use 33% of monthly gross income as a
guideline for PITI (principal, interest, taxes, and insurance).
TRUE
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 07-03 Determine costs associated with purchasing a home.
Topic: Escrow accounts
Topic: Financing alternatives
Topic: Home affordability and ratios
Topic: Home equity loans
Topic: Housing - Closing costs and procedures
Topic: Mortgage applications, options, refinancing, terms, rates, and payments
Topic: Reverse mortgages
Topic: Titles and deeds
2.
(p. 235) The Real Estate Settlement Procedures Act (RESPA) requires that loan applicants be
given an estimate of the closing costs after the actual closing.
FALSE
RESPA requires that applicants be given this information before the actual closing.
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Implement the home-buying process.
Topic: Home inspections
Topic: Home purchase considerations, negotiations, and selection process
Topic: Housing - Evaluating housing options
7-31
3.
(p. 221) Lease-to-purchase and rent-with-option allow homeowners to become renters.
FALSE
These allow renters to become homeowners.
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-01 Assess costs and benefits of renting.
Topic: Housing - Housing options
Topic: Rent versus buy decision
Topic: Rental considerations, costs, and contracts
4.
(p. 223) Renter’s insurance protects the tenant by covering damage or theft to clothing, furniture,
and stereo equipment.
TRUE
Blooms: Understand
Difficulty: 1 Easy
5.
(p. 219) Your lifestyle affects your housing decision.
TRUE
Blooms: Understand
Difficulty: 1 Easy
7-32
6. Your decision to rent or to buy your residence should be based solely on lifestyle factors.
(p. 219)
FALSE
Financial factors should also be considered.
Blooms: Remember
7. An advantage of renting is pride of ownership.

(p. 220)
FALSE
This is an advantage of buying.
Blooms: Remember
Difficulty: 1 Easy
8. Angela wanted to rent an apartment, so her landlord required her to sign a lease. The
(p. 222) lease is a legal document that defines the conditions of her rental agreement.
TRUE
Blooms: Understand
7-33
9. A landlord has the right to sublet an apartment.
(p. 223)
FALSE
The renter may have this right.
Blooms: Remember
10.
(p. 223) Lenny the landlord has the right to take legal action against Tina the tenant for
nonpayment of rent or destruction of property.
TRUE
Blooms: Understand
Difficulty: 1 Easy
11. When Brett's apartment lease ends, he should receive his entire security deposit back
(p. 223) even though the carpet has been damaged while he was living there.
FALSE
Since a security deposit is held by the landlord to cover the cost of damages, Brett may
receive only a part of it back.
Blooms: Understand
7-34
12. Rental insurance isn't important since the landlord's insurance on the building includes
(p. 223) coverage on all tenants' belongings.
FALSE
The landlord's insurance usually does not cover damage or theft of personal property
belonging to the tenants. It is important for the tenant to obtain adequate renter's
insurance.
Blooms: Understand
13. A disadvantage of home ownership is the deductibility of mortgage interest and real estate
(p. 225) tax payments.
FALSE
This is a financial benefit which reduces federal income taxes.
Blooms: Remember
Difficulty: 1 Easy
7-35
14. A duplex is a house with two or more separate dwellings.
(p. 225)
FALSE
A duplex is a building with two separate homes.
Blooms: Remember
15. A condominium is a form of housing in which the units in a building are owned by a
(p. 226) nonprofit organization.
FALSE
The definition is for cooperative housing.
Blooms: Remember
16.
(p. 226) A handyman's special is a home that needs work and that you are able to get at a lower
price .
TRUE
Blooms: Remember
Difficulty: 1 Easy
7-36
17.
(p. 227) When interest rates are high and the demand for homes is low, prices of homes will likely
be higher .
FALSE
The prices will probably be low.
Blooms: Analyze
Difficulty: 3 Hard
18. Private mortgage insurance is usually required if the down payment for a home is less
(p. 229) than 30%.
FALSE
PMI applies if the down payment is less than 20%.
Blooms: Remember
Difficulty: 1 Easy
7-37
19. An approved mortgage application usually locks in an interest rate for 60-120 days.
(p. 229)
FALSE
Lock-in periods usually range from 30 to 90 days.
Blooms: Remember
20.
(p. 230) As interest rates increase, more people are able to afford the cost of an average-priced
home.
FALSE
As interest rates increase, fewer people are able to afford an average-priced home.
Blooms: Understand
7-38
21.
(p. 231) Mortgage points are paid to the lender at the end of the mortgage.
FALSE
Points are prepaid interest and are paid to the lender when you buy the house and take
out the mortgage.
Blooms: Remember
Difficulty: 1 Easy
22. The most common conventional mortgage is the 20-year ARM.

(p. 231)
FALSE
A conventional mortgage usually has equal payments over 15, 20, or 30 years based on a
fixed rate . An adjustable rate mortgage loan is not a fixed-rate, fixed-payment mortgage.
Blooms: Understand
7-39
23. Most new mortgages are assumable.

(p. 232)
FALSE
Due to volatile interest rates, assumable mortgages are seldom offered.
Blooms: Remember
24.
(p. 232) Merrill bought a house and applied for a loan through the VA (Veterans Administration).
The VA will provide the mortgage money .
FALSE
Government agencies such as the VA do not provide the mortgage money . Instead they
help home buyers obtain low-interest, low-down-payment loans.
Blooms: Understand
7-40
25.
(p. 232) Most low- and middle-income people can qualify for a VA-guaranteed loan.
FALSE
Most low- and middle-income people can qualify for the FHA loan program . VA loans
assist eligible armed services veterans with home purchases. .
Blooms: Understand
26. An advantage of a second mortgage is that the interest rate subsidy from the home builder
(p. 233) reduces the mortgage payments during the first few years of the loan.
FALSE
The definition is for a buy-down.
Blooms: Remember
7-41
27. An advantage of a buy-down is that the interest rate subsidy from the home builder
(p. 233) reduces the mortgage payments during the first few years of the loan.
TRUE
Blooms: Remember
28. If you pay an extra $100 per month on your mortgage, your total loan principal will
(p. 234) decrease and your total interest will remain the same.
FALSE
Making extra payments on your mortgage will be applied to the loan principal. This saves
interest and helps pay off the mortgage in a shorter time.
Blooms: Understand
7-42
29.
(p. 234) At the closing of a home purchase, the buyer and seller conducts a walk-through of the
property.
FALSE
A walk-through should be completed prior to closing by the buyer. At closing, documents

are signed, last-minute details are settled, and appropriate amounts are paid.
Blooms: Remember
30. The purpose of an escrow account is to pay the points at closing.

(p. 236)
FALSE
An escrow is money from your monthly payments (and at closing) used for the payment of
property taxes and home insurance.
Blooms: Remember
7-43
31. Home improvements will definitely increase the selling price of a house.
(p. 238)
FALSE
Home improvements may or may not increase the selling price of a house.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Develop a strategy for selling a home.
Topic: Housing - Home sales preparations and procedures
32.
(p. 238) Each year about 50% of home sales are made by the home’s owners.
FALSE
About 10% are by owner.
Blooms: Remember
Difficulty: 1 Easy
33.
(p. 238) A real estate agent can help screen potential buyers to determine whether they will qualify
for a mortgage..
TRUE
Blooms: Remember
Difficulty: 1 Easy
7-44
34. If your home is assessed for $200,000, the market value of the home should be less than
(p. 237) $200,000.
FALSE
According to the "Personal Finance in Practice," the assessed value is normally lower than
the market value.
Blooms: Understand
Multiple Choice Questions
35. Marcus can afford a monthly mortgage payment of $900. If he is eligible for a 30-year, 5%
(p. 230) mortgage (where the mortgage factor is 5.37), how much of a mortgage loan can he
afford?
A. $150,000
B. $167,597.77
C. $200,100.75
D. $324,000.00
E. $510,015.00
Affordable mortgage amount = (affordable monthly mortgage payment/mortgage factor)

× 1,000; thus, = ($900/5.37) × 1,000 = $167,597.77
Blooms: Apply
Difficulty: 3 Hard
7-45
Another random document with
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creatures, does not presently see the infinite wisdom and goodness
of their Creator: and he must be mad, who will not own those
attributes.”
26. “A man would deceive himself,” says Lalande, “in believing he

could be a philosopher, without the study of the natural sciences. To
be wise, not by weakness, but by principles, it is necessary that, to
be able to reflect and think with vigour, we be freed from those
prejudices which deceive the judgment, and which oppose
themselves to the development of reason and of genius. Pythagoras
would not have any disciples, who had not studied Mathematics:
over his door was to be read, that “no one was to enter, unless he
were a geometrician.”—Morals would be less sure, and less
attractive for us, if they were to be founded on ignorance or on error.
“Ought we,” he asks, “to consider as of no importance the

advantage of being freed from the misfortunes of ignorance? Is it
possible to observe, without a feeling of compassion and even of
shame, the stupidity of those, who formerly believed, that by making
a great vociferation, during an eclipse of the Moon, they furnished
relief to the sufferings of that (imagined) goddess; or, that these
eclipses were produced by enchantment?”
“Cum frustra resonant æra auxiliaria Lunæ.”

Met. iv. 333.
Reyas, in the dedication of his Commentaries on the Planisphere

to the Emperor Charles V. mentions a curious historical fact, in
illustration of the effects of that superstition, derived from ignorance,
which astronomy has banished from the civilized world. It is thus
related by Lalande:—“Christopher Columbus, when commanding the
army which Ferdinand, king of Spain, had sent to Jamaica, some
short time after the discovery of that island, experienced so great a
scarcity of provisions, that no hope remained of saving his army,
which he expected to be soon at the mercy of the savages. An
approaching eclipse of the moon furnished this able man with the
means of extricating himself from his embarrassment: he let the chief
of the savages know, that if they should not, in a few hours, send him
all he asked for, he would oppress them with the greatest calamities;
and that he would begin by depriving the moon of her light. At first,
they contemned his menaces; but, when they saw that the moon
began, in reality, to disappear, they were seized with terror; they
carried all they had to the general, and came themselves to implore
forgiveness.”
Comets were formerly, even in civilized nations, another great

cause of consternation among the people; and one, also, which a
knowledge of astronomy has at length divested of its terrors, by
removing the source of those superstitious errors, a grossly mistaken
notion of the nature of those phænomena. “We are sorry to find,”
says Lalande, “such strange prejudices, not only in Homer [Iliad iv.
75.] but even in the most beautiful poem of the sixteenth century;
whereby means are furnished of perpetuating our errors—
“Qual con le chiome sanguinose orrende

Splender Cometa suol per l’aria adusta,
Che i regni muta e i feri morbi adduce,
E ai purpurei tiranni infausta luce.”
Tasso’s Jerus. del.
Which Mr. Hoole has thus translated—
“As, shaking terrors from his blazing hair,

A sanguine Comet gleams through dusky air,
To ruin states, and dire diseases spread,
And baleful light on purpled tyrants shed.”
Further, the progress of genuine astronomy has almost wholly

dissipated, in our day, the gross delusions of astrology, with the
mischievous portents of its infatuated judicial interpreters; follies
engendered by ignorance, which is, ever, the prolific parent of
prejudice, of superstition, and of their numerous concomitant evils.
27. Mr. Rittenhouse observes, (in his Oration delivered before the
American Philosophical Society, in 1775,) that “Galileo not only
discovered these moons of Jupiter, but suggested their use in
determining the longitude of places on the earth; which has since
been so happily put in practice, that Fontenelle does not hesitate to
affirm, they are of more use to geography and navigation, than our
own moon.”—This great man, one of the first restorers of the true
principles of physics, was condemned by, and suffered the penalties
of the Inquisition, in 1535, for defending the system of Copernicus!
He died in 1542.
A letter from Andrew Ellicott, Esq. to Mr. Robert Patterson, dated

the 2d of April 1795, and published in the fourth volume of the
American Philosophical Society’s Transactions, contains sundry
observations of the immersions of the satellites of Jupiter, made at
Wilmington in the state of Delaware, by Messrs. Rittenhouse, J.
Page, Lukens and Andrews, respectively, on divers days from the
1st to the 23d of August (both included,) in the year 1784; together
with those observed at the Western Observatory, by Messrs. Ellicott,
Ewing, Madison, &c. on divers days from the 17th of July to the 19th
of August (both included,) in the same year: also, of the emersions of
those satellites, by the same Eastern Observers, from the 29th of
August to the 19th of September (both included,) and by the same
Western Observers, from the 27th of August, up to the 19th of
September, both included; all in the year 1784. These observations
were made,
“Le Trident de Neptune est le Sceptre du Mond.”[27a]
when those able geometricians and astronomers were employed in

ascertaining the Western Boundary of Pennsylvania, by determining
the length of five degrees of longitude, West, from a given point on
the river Delaware.
27a. “The trident of Neptune is the sceptre of the world.”—This, as Lalande

observes, is nearly what Themistocles said at Athens, Pompey at Rome, Cromwell
in England, and Richelieu and Colbert in France.
28. Mr. Derham, speaking of the utility resulting from the

observation of these phænomena, (in his Astro-Theology,) says
—“As to the eclipses, whether of sun or moon, they have their
excellent uses. The astronomer applies them to considerable
services, in his way, and the geographer makes them no less useful
in his: the chronologer is enabled, by them, to amend his accounts of
time, even of the most ancient days; and so down through all ages:
and the mariner, too, can make them serviceable to his purpose, to
discover his longitude, to correct his account at sea, and thereby
make himself more secure and safe in the untrodden paths of the
deep.”
W. B.
29. Lucius Cælius Lactantius Firmianus, a Christian writer in the

beginning of the fourth century, reasons in a conclusive manner
against the heathen mythology, in the inference he draws from the
argument, used by the heathens, to prove the heavenly bodies to be
divinities. His argument, on this head, will be found towards the
conclusion of Mr. Derham’s Astro-Theology, where it is translated
from the Latin of that early and eloquent advocate of Christianity (in
his Divin. Instit. l. 2. c. 5.) in these words:—
“That argument whereby they” (those idolaters) “conclude the

heavenly bodies to be gods, proveth the contrary: for if therefore
they think them to be gods, because they have such certain and
well-contrived rational courses, they err: for, from hence it appears
that they are not gods; because they are not able to wander out of
those paths that are prescribed them. Whereas, if they were gods,
they would go here and there, and every where, without any
restraint, like as animals upon the earth do; whose wills being free,
they wander hither and thither, as they list, and go whithersoever
their minds carry them.”
Those vast orbs of matter in the universe, which constitute the

planets of our system, if even we consider this alone, and each of
which is known to have its appropriate motion, must of necessity
have had those motions communicated to them, at first, by some
Being of infinite power; the perfect order and regularity of their
motions render it equally plain, that that Being was also infinite in
wisdom; and the uninterrupted continuance of the same regularity of
motion, in their respective orbits, demonstrates in like manner, that
He who originally imparted their motions to the several planets is,
moreover, infinite in duration.
The vis inertiæ of all material substances, a quality inseparably

interwoven with their nature, deprives them (considered merely as
such) of the power of spontaneous motion; matter is inherently inert:
consequently, those great globes of matter, the planets (including the
earth,) necessarily derive their motions from a supremely powerful
First Cause, as well as from one infinitely intelligent, and everlasting
in his Being. Hence, Lactantius well observes, in another place, that
“There is, indeed, a power in the stars, of performing their motions;
but that is the power of God, who made and governs all things; not of
the stars themselves, that are moved.”
The reasoning of Lactantius, on this subject, is more worthy of a

philosopher, than that employed by Descartes, in supporting his
chimerical notion of vortices; or than that which led Kepler to adopt
his scheme, equally unsupported by any rational principles, of a
vectorial power produced by emanations of the sun, as primary
agents of motion in the solar system. Because these schemes of
Descartes and Kepler make it necessary to recur to some ulterior, as
well as more adequate and comprehensible cause of motion, in the
planets, than either vortices or emanations from the sun: whereas
Lactantius resorted, at once, to an intelligent First Cause, capable of
producing the effect; without conjuring up inefficient agents, as first
movers; which left them still under the necessity of going back to a
Creator of their respective causes (but second causes, at best,) of
the planetary motions; consequently, the First Cause; and, also, of
admitting the existence of Intelligence, as an essential attribute in the
nature of that Being.
An edition of the works of Lactantius (who was a native of Fermo

in Italy,) was printed at Leipsick, in 1715.
30. Wisdom of Solomon, ch. 13. v. 2.
31. Ibid. ch. 13. v. 3 and 5.

32. Psalm 19. v. 1.
33. In Mr. Smart’s Poetical Essay on the Immensity of the

Supreme Being, after a glowing description of some of the admirable
works of nature, is this apt, though laconic address to the Atheist:—
“Thou ideot! that asserts, there is no God,

View, and be dumb for ever.”
34. The poet gives a whimsical account of the first formation of

man, out of this earth, which is represented as being then new; and,
having been recently separated from the high æther, is therefore
supposed as yet holding some affinity with heaven, and retaining its
seeds. He describes the son of Japetus (Prometheus) moulding a
portion of earth, mixed with river-water, into the similitude of those
heathen deities, who were said to rule over all things.
A poetic translation into our own language, of the lines above

quoted, which exhibit “the godlike image,” thus formed, after its being
animated by the stolen fire of Prometheus, is comprehended in the
italicised lines of the following passage, extracted from Mr. Dryden’s
versification of the first book of Ovid’s Metamorphoses; in which the
English poet has well preserved the beauty, the force, and the
sublimity of the thought, so finely expressed in the original:—
“A creature of a more exalted kind

Was wanting yet, and then was Man design’d
Conscious of thought, of more capacious breast,
For empire form’d, and fit to rule the rest:
Whether with particles of heav’nly fire
The God of nature did his soul inspire;
Or earth, but now divided from the sky,
And pliant still, retain’d th’ ætherial energy:
Which wise Prometheus temper’d into paste,
And, mixt with living streams, the godlike image cast:
Thus, while the mute creation downward bend
Their sight, and to their earthly mother tend,
Man looks aloft, and with erected eyes
Beholds his own hereditary skies.”
35. Man will, unquestionably, by taking an extensive range in the

contemplation of nature, proportionably enlarge his intuitive
conceptions of the attributes of her Almighty First Cause; of whose
transcendently exalted existence, the study of his own being, one of
nature’s greatest works, will have taught him the reality: and a due
knowledge of himself, alone, will also instruct him in the dependent
nature of his condition, and the duties resulting from that state of
dependence, in his humble relation to the Supreme being.
Mr. Smart, in the poem before quoted, has prettily expressed this
idea, in the following lines:—
“Vain were th’ attempt, and impious, to trace

Thro’ all his works th’ Artificer Divine—
And tho’ no shining sun, nor twinkling star,
Bedeck’d the crimson curtains of the sky;
Tho’ neither vegetable, beast, nor bird,
Were extant on the surface of this ball,
Nor lurking gem beneath; tho’ the great sea
Slept in profound stagnation, and the air
Had left no thunder to pronounce its Maker;
Yet Man at home, within himself, might find
The Deity immense; and, in that frame
So fearfully, so wonderfully made,
See and adore his Providence and Pow’r.”
36. The same sentiment is beautifully expressed by Thomson, in

the following apostrophe:
“With thee, serene Philosophy! with thee,

And thy bright garland, let me crown my song!
Effusive source of evidence, and truth!
A lustre shedding o’er th’ ennobled mind,
Stronger than summer-noon; and pure as that,
Whose mild vibrations soothe the parted soul,
New to the dawning of celestial day.
Hence through her nourish’d pow’rs, enlarged by thee,
She springs aloft, with elevated pride,
Above the tangling mass of low desires,
That bind the fluttering crowd; and angel-wing’d,
The heights of science and of virtue gains,
Where all is calm and clear; with nature round,
Or in the starry regions, or th’ abyss,
To reason’s or to fancy’s eye display’d:
The First up-tracing, from the dreary void,
The chain of causes and effects to Him,
The world producing essence, who alone
Possesses being; while the Last receives
The whole magnificence of heaven and earth,
And every beauty, delicate or bold,
Obvious or more remote, with livelier sense,
Diffusive painted on the rapid mind.”
Summer, l. 1729 and seq.
37. It delights me to soar among the lofty stars; it delights me to

leave the earth and this dull habitation, to be wafted upon a cloud,
and to stand upon the shoulders of the mighty Atlas.
Mr. Dryden has thus translated the original into English verse:—
“Pleas’d, as I am, to walk along the sphere

Of shining stars, and travel with the year;
To leave the heavy earth, and scale the height
Of Atlas, who supports the heavenly weight.”
38. Dr. Francis thus versifies this passage, in our language:—
————“What bounds old ocean’s tides;

What, through the various year, the seasons guides:
Whether the stars, by their own proper force,
Or foreign pow’r, pursue their wand’ring course:
Why shadows darken the pale Queen of Night;
Whence she renews her orb, and spreads her light.”
39. Thus rendered, in English verse, by Mr. Dryden:—
“Ye sacred Muses, with whose beauty fir’d,

My soul is ravish’d, and my brain inspir’d;
Whose priest I am, whose holy fillets wear,
Would you your poet’s first petition hear;
Give me the way of wand’ring stars to know:
The depths of heav’n above, and earth below.
Teach me the various labours of the moon,
And whence proceed th’ eclipses of the sun.
Why flowing tides prevail upon the main,
And in what dark recess they sink again.
What shakes the solid earth, what cause delays
The summer nights, and shortens winter days—
Happy the man, who, studying nature’s laws,
Through known effects can trace the secret cause.”
40. The lines here referred to were written about eight years after
Sir Isaac Newton’s death. Voltaire supposes an apotheosis of
Newton to have taken place, among the planets personified by some
of the deities of the heathen mythology. Thus ascribing intelligence
to the stars, he considers them, by a poetical fiction, as being in the
confidence of the Most High—the true God; and to those subordinate
deities, or, perhaps, a fancied superior order of angelic beings, the
poet makes his figurative address; which may be thus rendered in
English verse:—
Ye confidents of the Most High,

Ye everlasting lights!
Who deck, with your refulgent fires,
The scene of godlike rights!
Whose wings o’erspread the glorious throne
Whereon your Lord is plac’d,
That Lord, by whose transcendent pow’r
Your borrow’d rays are grac’d;
Speak out, bright orbs of heaven’s expanse!
And frankly let us know:
To the exalted Newton’s name,
Can you refuse to bow?
41. Godfrey Kirch was born in the year 1640, at Guben in Lower
Lusatia, and lived with Hevelius. He published his Ephemerides in
1681, and became established at Berlin in 1700. This astronomer
made numerous observations.
42.
—-—-—“Amid the radiant orbs

That mere than deck, that animate the sky,
The life-infusing suns of other worlds,
Lo! from the dread immensity of space
Returning with accelerated course,
The rushing Comet to the sun descends;
And, as he sinks below the shading earth,
With awful train projected o’er the heavens,
The guilty nations tremble. But, above
Those superstitious horrors that enslave
The fond sequacious herd, to mystic faith
And blind amazement prone, th’ enlighten’d few,
Whose godlike minds Philosophy exalts,
The glorious stranger hail. They feel a joy
Divinely great; they in their powers exult;
That wond’rous force of thought, which mounting spurns
This dusky spot, and measures all the sky;
While, from his far excursions through the wilds
Of barren ether, faithful to his time,
They see the blazing wonder rise anew,
In seeming terror clad, but kindly bent
To work the will of all-sustaining love:
From his huge vapoury train perhaps to shake
Renewing moisture on the numerous orbs,
Through which his long elipsis winds; perhaps
To lend new fuel to declining suns,
To light up worlds, and feed th’ eternal fire.”
Thomson’s Summer, l. 1702 and seq.
43. Mr. Messier observed this Comet in France, eleven days

before it was discovered in England by Miss Herschel.
44. That the mind of the female sex is capable of compassing

great and extraordinary attainments, even in the most arduous
branches of science, is attested by many instances; and it cannot be
doubted that these would be more numerous, were women oftener
attentive to philosophical pursuits. Those who have been just named
serve to shew, that astronomy has been cultivated with success, by
them. And Dr. Reid tells us (in his Essays on the intellectual and
active Powers of Man,) that both the celebrated Christiana, Queen of
Sweden, and the Princess Elizabeth, daughter of Frederick, King of
Bohemia, and aunt of George I., were adepts in the philosophy of
Descartes. The latter of these princesses, though very young when
Descartes wrote his Principia, was declared by that philosopher to
be the only person he knew, who perfectly understood not only all his
philosophical writings, but the most abstruse of his mathematical
works.
45. The writer is happy in having it in his power to cite, in support

of his own opinion, that of an amiable and conspicuous female, in
favour of ladies making themselves acquainted with, at least, the
rudiments of astronomical science.
The Countess of Carlisle, a woman whose literary attainments, as

well as virtues and accomplishments, do honour to her sex and
station, in her Letters, under the signature of Cornelia, thus
recommends an attention to the study of astronomy, to the young
ladies to whom her letters are addressed. “Attain a competent
knowledge of the globe on which you live, that your apprehension of
Infinite Wisdom may be enlarged; which it will be in a much higher
degree, if you take care to acquire a general idea of the structure of
the universe. It is not expected you should become adepts in
astronomy; but a knowledge of its leading principles you may, and
ought to obtain.”—Her ladyship then refers her young female
correspondents to the Plurality of Worlds of Fontenelle, in order that
they might acquire a knowledge of the planetary orbs; pleasantly
recommending this author as a proper person, in the capacity of “a
gentleman usher,” to “introduce” them to an “acquaintance” with “that
brilliant assembly.”
Lady Carlisle’s Letters, lett. 8th.
46. Translated from the Latin.
47. This very eminent mathematician, as well as learned and pious

divine, died in the year 1677, aged only forty-seven years. See the
life of this extraordinary man, written in 1683, by the learned
Abraham Hill; prefixed to the first volume of the doctor’s theological
works; a fifth edition of which, in three folio volumes, was published
by archbishop Tillotson, in 1741. He also wrote and published many
geometrical and mathematical works, all in Latin.
“The name of Dr. Barrow,” says Mr. Granger, one of his

biographers, “will ever be illustrious, for a strength of mind and a
compass of knowledge that did honour to his country. He was
unrivalled in mathematical learning, and especially in the sublime
geometry, in which he was excelled only by one man; and that man
was his pupil, the great Sir Isaac Newton. The same genius that
seemed to be born only to bring hidden things to light, to rise to the
heights or descend to the depths of science, would sometimes
amuse itself in the flowery paths of poetry, and he composed verses
both in Greek and Latin.”
This “prodigy of learning,” as he is called by Mr. Granger, was

interred in Westminster Abbey, where a monument, adorned with his
bust, is erected to his memory.
48. Flavius Josephus informs us, (in his Jewish Antiquities, b. i.

chap. 7. 8.) that the sons of Seth employed themselves in
astronomical contemplations. According to the same historian,
Abraham inferred the unity and power of God, from the orderly
course of things both at sea and land, in their times and seasons,
and from his observations upon the motions and influences of the
sun, moon and stars. He further relates, that this patriarch delivered
lectures on geometry and arithmetic to the Egyptians, of which they
understood nothing, until Abraham introduced those sciences from
Chaldea into Egypt, from whence they passed into Greece: and,
according to Eupolemus and Artapan, he instructed the Phœnicians,
as well as the Egyptians, in astronomy.
49. We are informed by some ancient writers, that when Babylon

was taken, Calisthenes, one of Aristotle’s scholars, carried from
thence, by the desire of his master, celestial observations made by
the Chaldeans, nearly two thousand years old; which carried them
back to about the time of the dispersion of mankind by the confusion
of tongues: and those observations are supposed to have been
made in the famous temple of Belus, at Babylon. But these accounts
are not to be depended on: because Hipparchus and Ptolemy could
find no traces of any observations made at Babylon before the time
of Nabonassar, who began his reign 747 years before the birth of
Christ; and various writers, among the ancients, agree in referring
the earliest Babylonian observations to about the same period. In all
probability, the Chaldean observations were then little more than
matters of curiosity; for, even in the three or four centuries
immediately preceding the Christian era, the celestial observations
which were made by the Greeks were, for the most part, far from
being of any importance, in relation to astronomical science.
Indeed, the knowledge of astronomy at much later periods than

those in which the most celebrated philosophers of Greece
flourished, must have been very limited and erroneous, on account
of the defectiveness of their instruments. And, added to the great
disadvantages arising from this cause, the ancients laboured under
the want of a knowledge of the telescope and the clock; and also
maintained a false notion of the system of the world; which was
almost universally adhered to, until the revival and improvement of
the Pythagorean system by Copernicus, who died in 1543. Within
the last two hundred years, but, particularly, since the laws of nature
have been made manifest by the labours and discoveries of the
immortal Newton, the science of astronomy has made astonishing
advances towards perfection.
50. This sovereign re-established the university of Naples,

founded that of Vienna in Austria, in the year 1237, and imparted
new vigour to the schools of Bologna and Salerno. He caused many
ancient works in medicine and philosophy to be translated from the
Arabian tongue; particularly, the Almagest of Ptolemy.
Cotemporary with the Emperor Frederick II. was Alphonso X. King

of Castile, surnamed the Wise. This prince was the first who
manifested a desire of correcting the Tables of Ptolemy. In the year
1240, even during the life of his father, he drew to Toledo the most
experienced astronomers of his time, Christians, Moors, or Jews; by
whose labours he at length obtained the Alphonsine Tables, in 1252
(the first year of his reign:) which were first printed at Venice, in
1483. He died in the year 1284.
51. His name was John Holywood; deduced, according to a

practice prevalent in his time, from the place of his nativity, which
was Halifax, a town in the west-riding of Yorkshire, in England, where
he was born in the year 1204. It was formerly named Holy-wood; and
was, probably, so called in Sacro-Bosco’s day: but the more ancient
name of that place was Horton, or Hair-town; and Halifax signifies
Holy-hair.—This great man was the inventor of the sphere; and
wrote a work, entitled De Sphærâ, which was very celebrated. He
died at Paris, in 1256.
52. He died in 1294, at the age of eighty years.
53. Dr. Rush’s Eulogium, “intended to perpetuate the memory of

David Rittenhouse,” &c. was delivered before the American
Philosophical Society in Philadelphia, (a great many public
characters, and a numerous concourse of private citizens, also
attending,) on the 17th of December 1796. It was pronounced in
pursuance of an appointment made by the society, in these words,
viz:
“At a meeting convened by special order, on the 1st of July, 1796,
the following motion was made, and unanimously adopted; viz. That
this Society, deeply affected by the death of their late worthy
President, do resolve, That an Eulogium, commemorative of his
distinguished talents and services, be publicly pronounced before
the Society, by one of its members.”—Dr. Rush’s appointment was
made at the next meeting of the society.
The following resolutions passed by them, after the delivery of the

oration, will evince the high sense they entertained of the merit of
this performance; viz.
“Philosophical Hall, Dec. 17, 1796.—In Meeting of the American

Philosophical Society,
“Resolved, unanimously, That the thanks of this society be

presented to Dr. Benjamin Rush, for the eloquent, learned,
comprehensive, and just Eulogium, which he has this day
pronounced, upon the character of our late respected President, Dr.
David Rittenhouse.
“Resolved, unanimously, That Dr. Rush be requested to furnish the

society with a copy of the Eulogium, to be published under their
direction.
“An extract from the minutes:—Samuel Magaw, Robert

Patterson, W. Barton, John Bleakley, Secretaries.”
It may not be thought superfluous, to add, that Dr. Rush well knew
Mr. Rittenhouse. A personal friendship of an early date subsisted
between them: it probably originated when the latter established his
residence in Philadelphia, about six and twenty years before his
death. In the summer of 1772, Mr. Rittenhouse (in a letter to the Rev.
Mr. Barton) expressed his friendly estimation of the doctor in these
few words—“The esteem I have for Dr. Rush is such, that his
friendship for Mr. —— would, alone, give me a very good opinion of
that gentleman.”
54. “Biography, or the writing of Lives,” says Dr. Hugh Blair, “is a
very useful kind of composition; less formal and stately than history;
but to the bulk of readers, perhaps, no less instructive; as it affords
them the opportunity of seeing the characters and tempers, the
virtues and failings of eminent men, fully displayed; and admits them
into a more thorough and intimate acquaintance with such persons,
than history generally allows. For, a writer of lives may descend, with
propriety, to minute circumstances and familiar incidents. It is
expected of him, that he is to give the private, as well as public life,
of the person whose actions he records; nay, it is from private life,
from familiar, domestic, and seemingly trivial occurrences, we often
receive most light into the real character.”—Lectures on Rhetoric and
Belles Lettres, sect. 36. In addition to so respectable an opinion as
that of Professor Blair, respecting the utility and characteristic
features of biographical works, the writer of these memoirs hopes he
will be excused for giving the sentiments on the same subject,
contained in the following extracts from Dr. Maty’s Memoirs of the
Life of Lord Chesterfield, “tending to illustrate the civil, literary, and
political history of his own time.”
“Besides the great utility which general history derives from private
authorities, other advantages no less important,” says this learned
and ingenious biographer, “may be obtained from them. It is from
observing individuals, that we may be enabled to draw the outlines of
that extraordinary, complicated being, man. The characteristics of
any country or age must be deduced from the separate characters of
persons, who, however distinguishable in many respects, still
preserve a family-likeness. From the life of almost any one
individual, but chiefly from the lives of such eminent men as seemed
destined to enlighten or to adorn society, instructions may be drawn,
suitable to every capacity, rank, age or station. Young men, aspiring
to honours, cannot be too assiduous in tracing the means by which
they were obtained: by observing with what difficulty they were
preserved, they will be apprized of their real value, estimate the risks
of the purchase, and discover frequent disappointment in the
possession.”
“It is from the number and variety of private memoirs, and the
collision of opposite testimonies, that the judicious reader is enabled
to strike out light, and find his way through that darkness and
confusion in which he is at first involved.”
“Who does not wish that Cæsar had lived to finish his
Commentaries; and that Pompey’s sons, instead of fighting their
father’s cause, had employed themselves in writing his life?—What a
valuable legacy would Cicero have left us, if, instead of his
philosophical works, he had written the memoirs of his own times! Or
how much would Tyro, to whom posterity is so much indebted for the
preservation of his master’s letters, have encreased that obligation,
if, from his own knowledge, he had connected and explained them!
The life of Agricola, by his son-in-law Tacitus, is undoubtedly one of
the most precious monuments of antiquity.”
55. The duchy of Guelderland formerly belonged to the Spanish

monarchy; but by the peace of Utrecht, in 1713, part of it was ceded
to Austria, part to Prussia, and guaranteed to them by the treaty of
Baden, in 1714: that part which became subject to Prussia was, in
exchange for the principality of Orange, ceded to France. By the
barrier-treaty, in 1715, the states general of the United Provinces
likewise obtained a part of it. But the Upper and Lower Guelderland
have no connexion with each other: Lower Guelderland is (or was,
until very lately) one of the Seven United Provinces: it is the largest
of them all, and the first in rank. Arnheim, which is the capital of the
whole province, is a large, populous, and handsome town: it was
formerly the residence of the dukes of Guelderland, and the states of
the province held their meetings there.
56. The writer of these memoirs having been in Holland in the

summer of the year 1778, adverted, while in Amsterdam, to the
circumstance of the Rittenhouses, of Pennsylvania, having come into
America from some part of the United Provinces; and his curiosity
being excited, by his consanguineous connexion with that family, to
obtain some information concerning them, the following was the
result of his enquiries. He found a Mr. Adrian Rittinghuysen, (for so
he himself wrote his name,) residing in that city. This venerable man,
who was then eighty-five years of age, appeared to be at least
independent in his condition; and had, probably, retired from
business, the part of the city in which he resided (the Egelantier’s
Gracht, or Canal,) not exhibiting the appearance of a street of trade.
The information derived from this respectable old man, was, that
his forefathers had long been established at Arnheim; that his father,
Nicholas, was a paper-manufacturer in that city, as others of the
family had been; and that his father’s brother, William, went with his
family to North America, where he some time afterward, as he had
understood, established the paper-mills near Germantown. He
further stated, that he had only one child, a daughter, who was
married, and resided at the Hague; and that he was, himself, as he
believed, the last of his family-name, remaining in the United
Provinces.
Although plain in his dress and manners, and in the general

appearance of his household, this person seemed to be pleased in
shewing the writer a family-seal, on which was engraved a coat of
arms. The armorial device represented a castellated house, or
chateau; on the left side of which was a horse, standing on his hind
feet and rearing up, with his fore feet resting against the wall of the
house: and this house very much resembled the chateau in the
armorial bearing of the Spanish family “de Fuentes, señores del
Castillio,” as represented in Dubuisson’s French Collection of Arms:
The seal having been much worn, the lines, &c. describing the
several tinctures of the bearing, could not be discerned; and,
therefore, it cannot be properly blazoned. At the same time, the old
gentleman did not omit to mention, that his mother was a De Ruyter;
and that her arms were, a mounted chevalier armed cap-à-piè.
These facts, relative to the origin of the American Rittenhouses,

did not appear to the writer to be unworthy of notice. They are
correctly stated, being taken from a memorandum made by him,
immediately after his interview with Adrian Rittinghuysen.
The introduction of this slight sketch of the occupation and
condition of some of the European ancestors of our Philosopher, into
his Life, may be the more readily excused, since the great Newton
himself was not inattentive to such objects. There is, indeed,
implanted by nature in the human mind, a strong desire to become
acquainted with the family-history of our forefathers. Hence, Sir
Isaac Newton left, in his own hand-writing, a genealogical account or
pedigree of his family; with directions, subjoined thereto, that the
registers of certain parishes should be searched, from the beginning
to the year 1650; and he adds—“Let the extracts be taken, by
copying out of the registers whatever may be met with, about the
family of the Newtons, in words at length, without omitting any of the
words.” This investigation and enquiry of Sir Isaac, was made in the
sixty-third year of his age; and he himself caused the result to be
entered in the books of the herald’s office.
Such, also, was the curiosity of Dr. Benjamin Franklin. While the
Doctor was in England, he undertook a journey to Eaton, in
Northamptonshire, (a village situated between Wellingborough and
Northampton,) the residence of his forefathers, for the purpose of
obtaining information, as he tells us himself, concerning his family.
—“To be acquainted with the particulars of my parentage and life,
many of which are unknown to you,” (said Dr. Franklin in his Life,
which he addressed to his son,) “I flatter myself, will afford the same
pleasure to you as to me—I shall, relate them upon paper.”
57. See the preceding note.
58. Conradus Rittershusius was a learned civilian of Germany. He

was born at Brunswick in the year 1560, and died at Altorf in
Switzerland, in 1613. Two of his sons, George and Nicholas, also
distinguished themselves in the republic of letters. The writer of the
present memoirs is too little acquainted with the genealogies of
either German or Dutch families, to pretend to claim any
consanguinity between this C. Rittershuysen (or, as latinized,
Rittershusius,) and our Rittenhouses. But the name appears to have
been, originally, the same; and the ancestors of both, it may be
presumed, were of the same country: In giving a latin termination to
the name, the y is omitted, not being a Roman letter.
59. The Dutch were early and long distinguished for the superior
quality of the paper manufactured in their country. It excelled, in its
whiteness and the closeness of its texture, as well as its goodness in
other respects, the paper made elsewhere; and it was an article of
great importance to the republic, both for the internal consumption
and for exportation, until the Hollanders were rivalled in this
manufacture by the perfection to which it was afterwards brought in
other parts of Europe.
Paper, made from linen rags (for that made from cotton, silk, and
some other substances, was of a much elder date,) is said to have
been originally introduced into Germany from Valencia and
Catalonia, in Spain, as early as the year 1312, and to have appeared
in England eight or ten years afterwards. But the first paper-mill in
Great Britain was erected at Dartford in Kent, by Mr. Speelman, a
German, jeweller to queen Elizabeth, in the year 1558: and it was
not until more than a century after, that any other paper than of an
inferior quality was manufactured in England. Little besides brown
paper was made there, prior to the revolution in 1688: yet, soon after
that period, the English were enabled to supply themselves with
much the greater part of the various kinds of paper used in their
country, from their own mills; and the perfection to which the
manufacture of this important article has since been carried, not only
in England, but in France, Italy and Germany, has greatly diminished
the consumption of Dutch paper.
It is a fact worthy of notice, that the establishment of paper-mills in

Pennsylvania, by the Rittenhouses, was nearly co-eval with the
general introduction of the manufactory of white paper in the mother
country. This appears from the following circumstance:—There is
now before the writer of these memoirs a paper in the hand-writing of
the celebrated William Penn, and subscribed with his name,
certifying that “William Rittinghousen and Claus” (Nicholas) “his son,”
then “part owners of the paper-mill near Germantown,” had recently

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Kapoor Test Bank

Selecting and Financing Housing

True / False Questions

7. An advantage of renting is pride of ownership.

9. A landlord has the right to sublet an apartment.

14. A duplex is a house with two or more separate dwellings.

22. The most common conventional mortgage is the 20-year ARM.

23. Most new mortgages are assumable.

30. The purpose of an escrow account is to pay the points at closing.

Multiple Choice Questions

B. Home ownership usually has long-term financial advantages.

37. Which of the following is a disadvantage of renting?

A. Renters have fewer responsibilities than home owners.

38. Which of the following is an advantage of renting?

A. Noise from parties may be monitored closely.

A. The amount of the down payment.

42. The owner/landlord is known as the

44. This provides the tenant protection from rent increases.

47. Which of the following is NOT a benefit of home ownership?

A. Contractor's reputation and experience.

C. Payment arrangements during construction.

57. What should a home buyer consider when evaluating a house?

D. Showing Ingrid's home to potential buyers.

A. Move into the house.

60. Kelly selected a home and submitted an offer to the seller.

A. The seller must accept her offer.

65. Private mortgage insurance

A. The amount available for a down payment.

A. Expected maintenance costs.

A. Its limited availability.

80. A reverse mortgage

A. Is the same thing as a second mortgage.

C. Schedule an inspection of the condition of the home.

A. Exaggerate the size of his yard.

E. Underestimate the cost of utilities.

A. Current mortgage rates.

A. A real estate agent to help with the closing.

E. All of these are correct.

A. They can provide advice on features of your home to highlight.

True / False Questions

These allow renters to become homeowners.

Financial factors should also be considered.

7. An advantage of renting is pride of ownership.

This is an advantage of buying.

The renter may have this right.

This is a financial benefit which reduces federal income taxes.

A duplex is a building with two separate homes.

The definition is for cooperative housing.

The prices will probably be low.

PMI applies if the down payment is less than 20%.

Lock-in periods usually range from 30 to 90 days.

22. The most common conventional mortgage is the 20-year ARM.

23. Most new mortgages are assumable.

Due to volatile interest rates, assumable mortgages are seldom offered.

The definition is for a buy-down.

A walk-through should be completed prior to closing by the buyer. At closing, documents

30. The purpose of an escrow account is to pay the points at closing.

About 10% are by owner.

Multiple Choice Questions

Affordable mortgage amount = (affordable monthly mortgage payment/mortgage factor)

26. “A man would deceive himself,” says Lalande, “in believing he

“Ought we,” he asks, “to consider as of no importance the