Renting vs. Buying

One of the advantages of renting is that you

• can build equity

• can remodel or make decorative changes as wanted

• have less responsibility for maintenance and upkeep

• can deduct monthly payments from your taxes

When making decisions about a place to live, you should

• not worry about the cost because it is most important that you are happy with where you live

• base your final choice on cost because you can learn to be happy living anywhere you can afford to live

• determine how much you can spend and stay within your budget

"Everyone would own a house if they could afford to do so." This statement is

• False, because owning a home is based on the specific wants and needs of individuals.

• True, because owning a home is the American dream.

• False, because everyone can afford a house if they would only learn how to better budget their money.

• True, because living in a house has more advantages than living in an apartment.

Renters insurance

• is not necessary because the owners will pay for your personal property if anything happens

• is available only to people who rent an apartment

• is available only to people who rent a house

• is an inexpensive and smart purchase for anyone who rents a place to live

A lease specifies ________________ when renting a place to live.

• only the rights and responsibilities of the landlord

• what you can and cannot do

• only the rights and responsibilities of the tenant

• the rights and responsibilities of the tenant and landlord

A down payment is the

• loan to finance the purchase of real estate

• part of the purchase price paid in cash up front

• amount that a person must pay when renting an apartment

• difference between how much a house is worth and how much is owed on it

Which of the following should be included in a lease before you sign?

• The amount of the rent and how and when it must be paid

• If you have a roommate, only one person's name and signature

• The hours that the office is open and how to cntact the manager

• The address of the apartment complex, but not the exact apartment number

The purpose of a security deposit is to

• pay for all maintenance while you live in the apartment

• provide some protection for the landlord for damage you might make to the apartment

• pay for the last month of rent on your lease

• allow the owner/landlord to draw interest on your money while you live in the apartment

Which of these is an upfront cost of buying a house? Select all that apply.

• down payment

• security deposit

• loan application fee

• closing costs

Which of the following statements is TRUE?

• Owning a house is a greater financial commitment than renting an apartment.

• Owning a house is for wealthy people and renting an apartment is for low income people.

• There is little financial difference between owning a house and renting an apartment.

• Renting an apartment is a greater financial commitment than owning a house.