lesson five quiz: buying a home

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 common disadvantage of buying a home is:

• few financial benefits

• limited mobility

• restrictions on decorating and having pets

• conditions in the lease

The home-buying process starts with:

• locating and evaluating a home

• pricing the property

• determining homeownership needs

• obtaining an appraisal of the property

The amount of a mortgage a person can afford is affected by:

• the location of the house

• her or his income

• the cost of insurance

• his or her age

A ​ (a)   mortgage has a very large final payment.

• balloon
• conventional
• graduated-payment
• shared-appreciation

The charges for settling a real estate transaction are also called ​ (a)   costs.

• closing
• mortgage
• possession
• selling