Buying a House Flashcard

Front

What is one advantage of buying a house instead of renting?

Back

You can build up equity in your own property

Front

What is the purpose of earnest money when buying a house?

Back

To show that you are serious about buying the house

Front

What is the recommended down payment when buying a house?

Back

10-20% of the purchase price

Front

What are closing costs associated with buying a house?

Back

Fees charged by various people involved with the home sale

Front

What is the difference between a fixed mortgage and an adjustable mortgage?

Back

Fixed mortgage has a fixed interest rate, while adjustable mortgage has a variable interest rate.

Front

What should you consider before taking on the responsibility of homeownership? Moving expenses, Miscellaneous expenses, Appliances and furniture

Back

All of the above

Front

What does a monthly mortgage payment consist of? Options: Principal and interest only, Interest and insurance only, Taxes and insurance only, Principal, interest, taxes, and insurance

Back

Principal, interest, taxes, and insurance

Front

What does a bank or lending institution check before offering a home loan?

Back

Credit history and loan amount, Income and employment status, Value of similar homes in the area.

Front

What type of loan is usually needed to buy a house?

Back

Mortgage loan