F&CS: Lesson 1.04: Establishing a Home

F&CS: Lesson 1.04: Establishing a Home

​Thursday Sept. 10th

Where to Live?

• Job market:

• Cost of living:

• Security:

• Things to do:

• Closeness to friends and family:

Poll

What's most important to you when choosing a place to live?

• Job market

• Cost of Living

• Security

• Things to do

• Closeness to friends & family

Housing Options

• Single-family home: Great for families! Buy it or rent.

• Condo: Like an apartment but instead of renting you own it.

• Cooperative apartment: Buying shares in a corporation that owns the building.

• Apartment: Rent it!

Multiple Choice

Where would you expect to find a singe-family home?

• In urban high-rise buildings.
• In rural farmland areas.
• In commercial districts.
• In residential neighborhoods or suburban areas.

Multiple Choice

Which do you think would be the smartest option when you move out on your own for the first time?

• Move in with a roommate without discussing finances.
• Create a budget to manage your finances.
• Buy expensive furniture before budgeting.
• Ignore all expenses and spend freely.

Multiple Choice

The biggest factor in determining if you should buy or rent:

• Size of the property
• Location of the property
• Type of lease agreement
• Financial implications

Multiple Choice

This is another factor that determines if you should buy or rent:

• Personal taste in home decor.
• Location preferences and lifestyle choices.
• Availability of public transportation.
• Financial stability and market conditions.

Multiple Choice

Down payments are usually _____ % of the price of the home.

• 5

• 10

• 15

• 20

Neighborhood Covenants & Housing Regulations

• Covenants & housing regulations help maintain a home's value

• They are agreements among homeowners about what they can and cannot do to their homes. 

• Ex: Preventing owners from removing healthy trees, home color where you can park

• Covenants and regulations say that a community values property values more than individual rights.

Multiple Choice

The following is classified under what? Security deposit to ensure you treat the property well.

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? Down-payment to offset the amount of the loan

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? A credit check

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? Maintenance of the roof, plumbing, and heating

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? Utilities such as electricity

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? Monthly payments that do not create equity

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? Insurance on your property

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? Monthly payment due before you can move in

• Buy

• Rent

• Both

Multiple Choice

The following is classified under what? Property taxes

• Buy

• Rent

• Both

Mortgages

• Considered a "good" debt.

• Good credit helps you get the best interest rate possible on your mortgage.

Multiple Choice

What is a mortgage?

• A mortgage is a type of insurance for homeowners.
• A mortgage is a government grant for buying land.
• A mortgage is a rental agreement for commercial properties.
• A mortgage is a loan used to buy real estate, secured by the property itself.

Multiple Choice

This helps you get the best interest rate on a home mortgage:

• Choose a fixed rate without considering market trends.
• Increase loan amount and avoid comparison shopping.
• Ignore credit history and rely on personal recommendations.
• Improve credit score and shop for rates.

Multiple Choice

A mortgage is considered to be a "good" debt because...

• it has no interest rates.
• it can appreciate in value and may offer tax benefits.
• it is always paid off quickly.
• it can be used for any type of purchase.

Mortgages

• Collateral debt and describes the assets you pledge in order to receive a loan. 

• This means that if you default on your loan (cannot make payments for a certain period of time), then you can lose your house. 

• Amortization is the process of paying off a loan through specially structured payments.

Multiple Choice

What happens if you default on your home loan?

• You will receive a tax refund.
• Your home will appreciate in value.
• You can sell your home for a profit.
• If you default on your home loan, you risk foreclosure and damage to your credit score.

Multiple Choice

• Amortization is...

• a way to invest in stocks over time
• the process of gradually paying off a debt over time through regular payments.
• a method of calculating interest on a loan
• the process of increasing a debt through additional borrowing

Homeowner's Insurance covers

• Dwelling - if something happens to your home, then insurance will cover the cost to repair or rebuild your house.

• Personal - if the contents in your home are damaged or stolen, then insurance will cover the value of your possessions.

• Liability - this type of coverage will pay your legal expenses if someone gets injured on your property or if your home causes damage elsewhere 

Multiple Choice

When the economy is doing poorly housing prices ____.

• increase
• decrease
• remain stable
• fluctuate

Multiple Select

The ______ rate is a big part of the economy.

• interest
• savings
• unemployment
• inflation

Multiple Choice

When unemployment is high, fewer people are able to afford a house and the housing prices _____.

• decrease
• fluctuate
• remain stable
• increase

Multiple Choice

As interest rates fall, the cost to get a mortgage _________.

• fluctuates unpredictably
• decreases
• increases
• remains the same

Multiple Choice

If the cost to get a mortgage decreases there is a higher demand for ______.

• furniture
• cars
• vacation homes
• homes

Multiple Choice

How do high unemployment rates in a community affect the housing market there?

• High unemployment rates have no effect on the housing market.
• High unemployment rates lead to more investment in housing development.
• High unemployment rates increase housing demand and property values.
• High unemployment rates typically lead to a decline in housing demand and property values.

Multiple Choice

Credit is the ability to...

• borrow money or access goods or services with the promise to pay later
• increase your income immediately
• save money for future use
• reduce your expenses effectively

Multiple Choice

Low credit in a community drives home prices ...

• to decrease

• to increase

• to stabilize

• to remain unchanged

Congratulations!

You've finished the ClassConnect lesson for Thursday Sept. 10th.