Buying and Renting Quiz

Which is an example of a fixed expense

• Mortgage payment or rent

• groceries

• Gas and electric bill

What is an example of a variable expense?

• Mortgage payment or rent

• internet bill

• Grocery expenses

What is a mortgage?

• A loan borrowed to buy a house (if you don't pay the loan the bank takes your house)

• A loan borrowed with your house as collateral (if you don't pay the loan the bank takes your house)

• Both of these are true

What is the recommended down payment for buying a house?

• 10%

• 20%

• 30%

Who will you NOT have to pay in the process of buying a house?

• A real estate agent (if you use one)

• A home inspector

• The home owners every time you visit the house

• A lawyer to complete the closing paperwork

What is an appraisal?

• An unbiased professional value of a home

• An advertisement used to praise a property in order to sell it

  Answer option 2

Who do you have to pay to manage the closing? (draft the contract, make sure that fees are paid, make it legal)

• A Lawyer

• A real estate agent

What are the options for the length of a standard mortgage?

• 10 or 20 years

• 15 or 30 years

A policy that covers a renters personal property against loss by theft, fire, or other hazards. 

• Security Deposit
• Equity 
• Renter's Insurance
• Principal

Fee that covers the cost of any future damage the renter might cause to the unit. 

• Material Resources
• Renter's Insurance
• Security Deposit
• Interest