Home-buying, Renting and Financing

A main advantage of buying is pride of ownership.

• True

• False

Buying a home will usually have fewer costs than renting.

• True

• False

The home-buying process ends with closing the purchase transaction.

• True

• False

A larger down payment will reduce the amount of the mortgage needed.

• True

• False

Conventional mortgages usually have a rate that changes as market interest rates change.

• True

• False

A disadvantage of using credit is impulse buying.

• True

• False

Capital refers to a person’s assets.

• True

• False

A steady employment record helps a person’s credit history.

• True

• False

Installment credit usually allows a person to make additional purchases on an account.

• True

• False

Using the 20-10 rule, a person making $40,000 a year after taxes should have no more than $8,000 of outstanding debt.

• True

• False