C11L2

Fill in the blank: Renting is defined as periodic payments (usually monthly) by a tenant to a landlord in return for the use of a ________.

• property

• vehicle

• appliance

• tool

Fill in the blank: A Fixed-Rate Mortgage is a mortgage with a set interest rate for a set number of ________.

• years

• months

• days

• weeks

Fill in the blank: Mortgage Principal is the amount ________ (that has to be paid back) to purchase a home.

• borrowed

• saved

• earned

• invested

Renting means you pay an agreed-upon price to transfer ownership of a property from the seller to yourself.

• True

• False

Owning a home differs from renting in which of the following ways?

• Owners build equity, renters do not.

• Renters pay property taxes, owners do not.

• Owners have no maintenance responsibilities, renters do.

• Renters can sell the property, owners cannot.

According to the passage, what is sometimes needed instead of rushing to buy a home?

• More money

• Patience

• A bigger house

• A new job

Is renting always the cheaper option compared to owning a home?

• Yes

• No

What are some of the expenses that come with homeownership mentioned in the passage?

• Maintenance, homeowner’s insurance, taxes, and monthly mortgage payment.

• Only the monthly mortgage payment and utilities.

• Just the cost of buying furniture and appliances.

• Only property taxes and insurance.

According to the passage, what happens to your mortgage payments if you get a fixed-rate mortgage?

• They increase every year

• They decrease every year

• The principal and interest portion are locked in

• They depend on the housing market

Fill in the blank: When your house’s value goes up and your mortgage principal goes down, you’re investing money in your house that you’ll get back if and when you ____ it.

• sell

• paint

• rent

• clean