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Chapter 11 Test Review Flashcards | StudBud
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Chapter 11 Test Review
Chapter 11 Test Review
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Foundations in Personal Finance, Chapter 11 (Housing and Real Estate) multiple choice review.
Flashcards
30 cards
F
Practice quiz
P
Host live
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Questions
30
Answers
1
Renting is a great option for many people.
False
True
2
You should buy a home, even if you cannot afford it just yet. Renting is a waste of money.
True
False
3
When you're ready to buy a house, the best option is a ____.
30 year equity loan
30-year fixed-rate mortgage
15-year fixed-rate mortgage
4
What information should a lease contain?
Acknowledgement clause, your name, and the local restauarants available
The names and numbers of the closet shopping malls
Property address, rental term, security deposit terms, and pet fees
5
What is your mortgage principle?
The amount borrowed (that must be repaid) to purchase a home.
The largest amount of money you are legally allowed to borrow.
The first payment you make on your new home.
The down payment needed to get a mortgage.
6
Which type of loan is not secured by a government entity and usually has the best rate and term?
Conventional loan
FHA loan
Family loan
VA loan
7
Living on campus at college will help you ____ living on your own, while living off campus will require you to ____.
ease into; pay for rent, utilities and groceries
dive into; live with your parents
enjoy; find roommates
8
When someones housing costs cause them to stuggle to reach their other financial goals, they are _______.
Wise homeowners
Wealthy
House poor
Rent poor
9
You should rent until you are able to _________.
Invest in stocks
Buy a home the right way
Buy amenities
Become a landlord someday
10
Learning about the costs of living before you need to cover them and creating good money habitsearly are examples of __.
Wealth building
Taking personal responsibility
Being a consumer
Poor money management
11
A house is an asset that typically will......................... value over time
Stay the same
Decrease in
Depreciate in
Appreiciate in
12
As u shop around & compare rent prices, remember that paying extra for__is not worth it if it delays your financial goal
security deposits
amenities
tax brackets
mortgages
13
It's best ro develop good ____ now instead of waiting until you're on your own to figure it all out.
friendships
money habits
diet and exercise plans
14
What type of interest rate is locked in and won't change for the life of the loan?
15-year
Equity
Adjustable rate
Fixed-rate
15
To make living with a roommate more peaceful while you are saving money...
assume that your best friend will make a great roommate
avoid talking to them in order to avoid conflict
communicate, be respectful, and be considerate
require your roommate to pay a larger rent check than you do
16
If you look at long-term costs, _____ is usually the better deal.
maintaining
renting
homeownership
17
The only time it's okay to borrow money if you can't pay 100% cash is...
Renting a home
Getting a car lease
Buying a home (mortgage)
For home improvement projects
18
Buying a house while ____ can put your ____ at risk.
On a budget; social life
in debt; home purchase
getting pre-approved; life
19
U need 2 be completely out of debt,have a fully funded emergency fund&have saved enough cash 4 a down payment before U__
Rent a house
Lease a house
Sell a house
Buy a house
20
What does cost of living refer to?
The average salary that someone makes
The average cost of a house
The average cost of basic needs
21
Making periodic payments to a landlord for the use of their property is called_____
Security deposit
Down payment
Renting or leasing
Buying
22
Your rent payment should be no more than _____% of your take-home pay.
75%
25%
15%
50%
23
No matter what path you choose to take after high school, the money principles stay the same. What are they?
Save, budget, stay out of debt, live on less than you make, and be generous
Live on more than you make and debt dominates all
Invest before anything else and budget if you have time
Only debit card for purchases, rent-to-own are king, don't open savings.
24
It is impossible to get a mortgage without a credit score.
False
True
25
A fixed-rate mortgage has a _____ mortgage rate for _______ years.
12%; 30
set; a set number of
high; a large amount
good; 15
26
Equity is the difference between what you still owe on your home and what it is worth.
False
True
27
Your decision to rent or buy depends on your _____.
financial situation
friend's opinion
feelings towards renting or buying
28
It's important to read your leasing contract, because once you sign it, it is enforcable by law.
False
True
29
A leasing contract...
is a legal document that allows renters to use the property
is something a roommate owes taxes on when they move in
30
After you hire a real estate agent, the next step in the process is to
Get a home inspection
Start looking at homes within your budget
Make an offer on a home
Close on your new home
