Buying or Renting Web Quest

Buying a home is generally considered better than renting.

• True

• False

• Depends on individual circumstances

• Neither is better

Choosing between a 15-year and a 30-year mortgage depends on factors such as monthly payments and total interest paid. Which option typically results in lower total interest paid over the life of the loan?

• 15-year mortgage

• 30-year mortgage

• Both result in the same interest

• It depends on the lender

Tags

CCSS.7.RP.A.3

Term: PMI (Private Mortgage Insurance)

• When buying a home with less than 20% down payment, you may be required to pay for Private Mortgage Insurance (PMI).

• PMI is a type of insurance that covers home repairs after purchase.

• PMI is a government grant for first-time homebuyers.

• PMI is a tax deduction for homeowners with a mortgage.

Term: Conventional Loan

• A conventional loan is a type of mortgage that is not insured or guaranteed by the government.

• A conventional loan is a mortgage insured by the Federal Housing Administration (FHA).

• A conventional loan is a mortgage guaranteed by the Department of Veterans Affairs (VA).

• A conventional loan is a mortgage provided only by government agencies.

Term: Total Monthly Payment (PITI)

• Total Monthly Payment (PITI) stands for Principal, Interest, Taxes, and Insurance, which are the components of a monthly mortgage payment.

• Total Monthly Payment (PITI) refers to only the interest paid on a mortgage each month.

• Total Monthly Payment (PITI) is the amount paid for utilities and maintenance fees.

• Total Monthly Payment (PITI) includes only the principal and insurance payments.

Tags

CCSS.7.RP.A.3

Term: FHA Loan

• A mortgage loan insured by the Federal Housing Administration, designed for low-to-moderate-income borrowers who may have lower credit scores.

• A loan provided exclusively to veterans by the Department of Veterans Affairs.

• A conventional loan requiring a 20% down payment and no government backing.

• A short-term loan used for home renovations and repairs.

Term: FHA Loan Type in a sentence

• I was able to buy my first home with an FHA Loan because of the lower down payment requirements.

• I was able to buy my first home with a Jumbo Loan because of the lower down payment requirements.

• I was able to buy my first home with a Conventional Loan because of the lower down payment requirements.

• I was able to buy my first home with a VA Loan because of the lower down payment requirements.

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

Term: Mortgage Principal Type in a sentence

• Each monthly payment reduces the mortgage principal on my home loan.

• Each monthly payment increases the interest rate on my home loan.

• Each monthly payment covers only the property taxes on my home loan.

• Each monthly payment is used solely for home insurance.

Homeowner’s Insurance is a type of insurance that provides coverage for which of the following?

• Damage or loss to a person's home and belongings

• Medical expenses for illness

• Automobile accidents

• Travel cancellations

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Term: Homeowner’s Insurance Type in a sentence

• Having homeowner’s insurance protected me when my house was damaged by a storm.

• Having car insurance protected me when my house was damaged by a storm.

• Having health insurance protected me when my house was damaged by a storm.

• Having travel insurance protected me when my house was damaged by a storm.

Tags

CCSS.RI.11-12.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RL.11-12.4

CCSS.RL.9-10.4