Personal Finance Unit 11 Housing

Real estate professionals created and maintain private databases in order to help buy and sell their clients homes more efficiency. What are these databases called?

• Multiple Listing Services (MLS)

• Realtor Association Databases (RAD)

• Homeowner Assistant Realtor (HAR)

• Electronic Sales Agent (EAS)

There are a number of costs that must be considered in addition to the purchase price of the home. Which of the following is NOT a cost associated with home ownership that would most likely be different from renting an apartment?

• Utility Bills

• Home Owner’s Insurance

• Auto Insurance

• HOA Fees

• Property Tax

Which of the following common utility bills should you plan on paying for when buying a house that you most likely did NOT pay for when renting an apartment?

• Electricity

• Natural Gas

• Water/Sewer/Garbage

• Cable/Internet

Which of the following organizations determine and charge you property tax on your home?

• School district you live in

• City you live in

• All of them

• County you live in

Dillon has enjoyed a manageable house payment for the first 3 years he owned his home. However, last year his payment went up about $65 and this year it went up $130! Which of the following types of interest rate structures does Dillon have on his mortgage?

• Fixed Rate Mortgage

• Adjustable Rate Mortgage

• Depreciating Rate Mortgage

• FHA Rate Mortgage

• Commercial Rate Mortgage

Which of the following is a major difference between Fixed and ARM loans?

• Fixed interest rates start out higher, but never change.

• ARM interest rates start out higher but get smaller over the life of the loan.

• Fixed interest rates start out lower but require higher credit scores to get.

• Both have interest rates that change, but a fixed rate changes every year the same amount.

What is the term used to describe when a house’s value increases over time?

• Depreciation

• Appreciation

• Inflation

• Expansion

• Appraised Value

What is the term used to describe when a house’s value decreases over time?

• Appreciation

• Inflation

• Compression

• Depreciation

Home values have increased more than double the rate of inflation.

• True

• False

Unlike living in an apartment, when renting a home, you gain equity in it the same as if you purchased it yourself.

• True

• False