Buying vs Renting

which of the following is an advantage of renting a home?

• Individuals can rent a home with a smaller financial commitment than if you were to buy a home.

• It is easy to move or change homes if you don’t like the first home.

• There is less maintenance associated with renting a home.

• Individuals can rent a home with a smaller financial commitment than if you were to buy a home, It is easy to move or change homes if you don’t like the first home, and There is less maintenance associated with renting a home.

• Individuals can rent a home with a larger financial commitment than if you were to buy a home and There is less maintenance associated with renting a home.

all of the following is a disadvantage of buying a home, except:

• It can be difficult to find a buyer that can qualify for a loan to buy your home.

• The cost of buying a home is greater than the cost of renting a home.

• It can be hard to maintain ownership of the home.

• It can be difficult to find a buyer that will pay what your home is worth.

• It can be hard to move if you buy a home because you must sell the home to someone else.

the decision to rent or buy a home is an important decision that can affect not only your ________________, but also your _________________.

• Bank account; mental health

• Happiness; debt

• Family; friends

• Financial decisions; quality of life

• Credit rating; shopping habits

Paisley has an annual income of $54,600 and has additional debt of $350. Her estimated monthly property taxes and homeowners insurance is equal to $390. What is Paisley’s affordable monthly mortgage payment?

Formula: 38% of Monthly Gross Income minus (other debt + Taxes and Insurance)

• $989.00

• $761.50

• $390.00

• $350.00

Mason is applying for a 30-year mortgage with a 5.37% interest rate. Mason has an annual income of $50,000 and has no additional debt. His estimated monthly property taxes and homeowners insurance is equal to $430. What is Mason’s affordable mortgage amount?

Formula:

step 1. 33% x Monthly Gross Income minus (other debt + taxes and insurance)

step 2. (Answer/Interest rate) x 1,000

• $3,458,100.56

• $432,029.80

• $214,773.67

• $198,632.48

• $175,977.65

Aubrie is going to make a 22% down payment on her house. If her affordable mortgage amount is $212,476.35, what is Aubrie’s affordable home purchase price?

Formula: Affordable mortgage amount/ (1 - down payment)

• $760,782.12

• $553,884.36

• $275,350.86

• $272,405.58

• $225,612.37

all of the following are seller estimated costs, except:

• Recording fees or transfer taxes

• Title insurance

• Appraisal fee

• Property survey

• Attorney’s fee

Condominiums usually require a monthly fee for various services. At $285 a month, how much would a homeowner pay over a 10-year period for living in this housing facility?

• $50,000

• $34,200

• $28,500

• $3,400

Which of the following is an advantage of buying?

• Mobility

• Lower initial cost

• Tax deduction for mortgage interest

• Little to no maintenance cost

Tags

CCSS.RL.11-12.9

CCSS.RL.6.3

CCSS.RL.7.3

CCSS.RL.8.3

CCSS.RL.9-10.3

a legal document that defines the conditions of the rental

• mortgage

• lease

• Insurance

• contract

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5