MU-10.2 The Costs of Buying a House

Multiple Choice

Which of the following is a significant cost to consider when buying a house?

• Down payment

• Monthly rent

• Car insurance

• Groceries

Multiple Choice

1. What's the average price of a house in the US in 2023?

• $535,800

• 623,200

• 714,000

​$535,800 as of Jan 26, 2023.

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Draw

Once you start learning about buying a house, it can seem there are unexpected costs that show up everywhere. Let’s break it down - what are the most common costs you should prepare for? Read the article and answer the questions.

Draw

Once you start learning about buying a house, it can seem there are unexpected costs that show up everywhere. Let’s break it down - what are the most common costs you should prepare for? Read the article and answer the questions.

Open Ended

2. Amanda is planning to buy a house worth $500,000. She anticipates making a down payment of 8%, paying closing costs around 4% of the home’s value, and paying $1500 in moving costs.  Approximately how much should she save in preparation for the upfront costs?

Open Ended

3. What is one new expense you’ll need to budget for as a homeowner that you don’t pay directly as a renter?

Multiple Choice

1. What is the largest expense that someone generally pays at the time they buy a house?

• Property taxes

• Down payment

• Closing costs

• Utilities

Multiple Choice

2. Mason has a monthly gross income of $4,846. Help him budget that income based on the 28-36 rule. He should spend at most…

• 28% on his mortgage and 36% on his total monthly debt payments

• 28% on his mortgage and 36% on his total monthly housing costs

• 28% on his savings and 36% on his mortgage

• 28% on his down payment and 36% on his mortgage

Multiple Choice

3. Sarah realized that she can’t afford to buy a house right now, but wants to get ready to buy in a few years. All of the following strategies could increase her future housing budget, EXCEPT…

• Reduce her monthly debt payments

  
  

• Increase her income

• Find a house with higher HOAs

• Save for a higher down payment

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