Financial Literacy Chapter 11

What happens to a mortgage down payment?

It's important to read your leasing contract, because once you sign it, is enforceable by law.

You should buy a home, even if you cannot afford it just yet. Renting is a waste of money.

If you’re “house poor”, it means you can’t afford to buy a house.

Buying a house is the largest financial decision a person makes.

Your rent payment should total no more than ____% of your take-home pay.

What is mortgage principal?

A house is an asset that typically will ________ value over time.

Another word used for “renting” is:

You should have the first four foundations and a down payment saved before you _______ .

No matter what path you choose after high school, the money principles stay the same.

When the costs of homeownership cause people to struggle to reach their other financial goals, they are:

An apartment lease is a legal contract for a set period of time.

The larger your down payment, the lower the risk to the lender that you will default on your loan.

Buying a house while ______ can put your ______ at risk.

Equity is the difference between what you still owe on your home and what it is worth.

When you're ready to buy a house, the best option is a:

Which type of loan is not secured by a government entity and usually has the best rate and term?

Pre-approval (finding out how much a bank will loan you) for purchase is the last step to buying a house.

What type of interest rate is locked in and won't change for the life of the loan?

It is impossible to get a mortgage without a credit score.

When buying a house, you’ll typically need a ___% down payment to avoid paying PMI.

Renting is a great option for many people.

When buying a house, you don't have a choice in who your real estate agent will be.

A mortgage payment covers: