Housing Options Exam Review

Which of the following is not an advantage to renting?

• Don't need a large down payment

• Less Responsibility

• More Flexibility

• No Equity

Amount you pay to landlord to guard against an financial loss or damage by the tenant

• Renter's Insurance

• Security Deposit

• Collateral

• Down Payment

Legal document that defines the conditions of the rental agreement between tenant and landlord

• Charter

• Mortgage

• Lease

• Lessee

Which of the following is not an advantage to home ownership?

• Appreciation (Investment)

• Tax Benefits

• Equity

• Maintenance and Repair Costs

A long term loan extended to someone who buys property.

• Home Equity Loan

• Mortgage

• Lease

• Credit Agreement

Type of mortgage loan where rates go up or down depending on the economy

• Adjustable Rate Mortgage

• Fixed Rate Mortgage

• Variable Mortgage

• Reverse Mortgage

The reduction of a loan balance through payments made over a period of time

• Amortization

• Lease

• Appraisal

• Down Payment

Which of the following is a disadvantage to owning a house?

• Control over changes to house

• Tax Benefits

• Equity

• Limited Mobility

Which of the following is an advantage to renting?

• No Equity

• Less Responsibility/Maintenance

• Size of the living space

• Privacy

Which of the following is not a potential cost of renting?

• Utilities

• Renters Insurance

• Security Deposit

• Mortgage Payment