AFA: Unit 5A-Renting Vs. Buying Review

Front

What is typically required when applying for a mortgage?

Back

A credit report and proof of income.

Front

What does a lease specify when renting an apartment?

Back

The rights and responsibilities of both the tenant and the landlord.

Front

Calculate the total interest on a $190,000 house with an 8.5% interest rate over 20 years.

Back

$205,726.40.

Front

What is the front-end ratio in relation to housing expenses?

Back

It is a measure of how much of a person's income goes towards housing costs.

Front

What is one advantage of renting an apartment?

Back

Less responsibility for maintenance and upkeep.

Front

Define 'front-end ratio'.

Back

The percentage of a person's gross income that goes towards housing costs.

Front

What is a mortgage?

Back

A loan specifically for purchasing real estate, secured by the property itself.

Front

What is the difference between renting and buying a home?

Back

Renting involves paying for the use of a property without ownership, while buying involves purchasing the property and gaining equity.

Front

What is equity in real estate?

Back

The difference between the market value of a property and the amount owed on the mortgage.

Front

What are property taxes?

Back

Taxes paid by property owners based on the value of their property.