Study Guide - Unit 5 Housing

Buying a home achieves which two financial goals at the same time?

• Providing a place to live, bringing you great happiness

• Providing a place to live, investing for the future

• Providing a place to live, paying off your consumer debt

• Providing a place to live, paying for your college expenses

The amount of money that a lender makes by loaning money to a borrower is called

• principle

• down payment

• interest

• credit

If a credit card is maxed out that means ....

• You are utilizing 100% of the credit

• It has been swiped too many times

• You are in collections

• You win a prize

All of the following are advantages of renting EXCEPT:

• You don't need to save a huge down payment

• You are not responsible for maintenance and repair of the property

• You have equity in the house

• You have flexibility to move more often

The amount of money you save towards buying a house and put down is called a(n) …

• investment

• lease

• interest

• down payment

Which of the following is impacted by your credit score?

• Cost of a house you want to buy

• Nothing. Credit score doesn't matter when buying a house.

• Interest rate offered to you

• Your down payment

How much money should you put towards your home's down payment?

• 10 - 20% of the price of the home

• Your entire emergency fund

• Three times your monthly expenses

• Five years' worth of payments

A lease is ...

• a rental agreement

• a fee you pay before renting a house or apartment

• extra living expenses

• a security deposit

How is it possible someone could pay their mortgage monthly for years without reducing their principal by very much?

• The bank is pocketing that money instead of paying toward the loan

• The house's value increased so much that it's worth more than they agreed to pay

• The real estate market changed substantially since they took out the mortgage

• In early years of a loan, most of the payments go toward interest

How long can a missed payment stay on your credit report?

• 7 years

• 5 months

• 90 days

• 30 days