Personal Finance Chp 7 Review 2

Renting is a wise choice for someone who wants _______

• privacy

• mobility

• space

• a large backyard

A _______ is someone who is familiar with the local housing market.

• tenant

• librarian

• real estate agent

• homeowner

The legal document that defines the conditions of the rental agreement between the tenant and the landlord is called a _______.

• mortgage

• security deposit

• deed

• lease

The value of the house minus the amount still owed on the money borrowed to purchase it is called _______.

• mortgage

• equity

• points

• renters insurance

The most popular type of housing in the United states is the _______.

• mobile home

• condominium

• single-family dwelling

• duplex

A _______ is a person who evaluates a house and land for a buyer.

• home inspector

• real estate agent

• tenant

• landlord

The _______ is the amount that the owner asks for the house.

• listing price

• points

• down payment

• mortgage

A(n) ___________ has an interest rate that increases or decreases during the life of the loan.

• Adjustable-Rate Mortgage (ARM)

• Principal Balance

• Fixed-Rate Mortgage

• An escrow account

In the first years of a mortgage, most of the monthly payment goes toward paying off the ___________ .

When homeowners ___________ , they take out a new mortgage at a lower interest rate.