Renting vs. Buying a Home

What is the primary responsibility of a renter?

• Paying property taxes

• Maintaining the home's value

• Paying rent on time

• Replacing the roof

What is a key difference between renting and buying a home?

• Rent payments contribute to ownership

• Buying involves paying property taxes, while renting does not

• Renters can make property changes without approval

• Homeowners do not pay for maintenance

Which of the following is a benefit of renting a home?

• Building equity over time

• No need to budget for maintenance

• Freedom to make property changes

• Potential to profit from home appreciation

What is equity in the context of homeownership?

• The amount borrowed from a lender

• The portion of the home owned outright by the homeowner

• The value of the land the house sits on

• The down payment made by the buyer

What does home appreciation refer to?

• The process of paying off a mortgage

• An increase in the value of a home over time

• The amount of property taxes paid

• The amount spent on home maintenance

Which of the following is a disadvantage of buying a home?

• Building equity

• Monthly rent payments are fixed

• Maintenance responsibilities are on the homeowner

• Freedom to make modifications to the property

What is a lease agreement?

• A contract that outlines the terms of renting a property

• A loan for buying a home

• An insurance policy for renters

• A document showing how much rent a property owner pays

What is a security deposit for renters?

• A monthly payment to the landlord

• A refundable upfront payment to cover damages

• The cost of renters' insurance

• A down payment toward a future home purchase

Which of the following costs is unique to homeowners?

• Rent payments

• Mortgage payments

• Lease termination fees

• Security deposit

What happens if a homeowner misses a mortgage payment?

• The home becomes a rental property

• The homeowner loses ownership of the property immediately

• The lender may begin foreclosure proceedings

• The homeowner pays an additional fee to the bank