CM Chapter 11 Review (Housing and Real Estate)

________ is the difference between what you still owe on your home and what it is worth.

• Equity

• Principle

• Maintenance

• Amenities

After you hire an agent, the next step in buying a house is to...

• get preapproved

• find a home

• close on your home

• make an offer

In a mortgage, the principle is...

• the first payment you make

• the last payment you make

• the amount borrowed

• the legal limit of how much you can borrow

In a mortgage, the down payment is the...

• first payment you make

• large sum of money paid at the time of closing

• amount borrowed to purchase a home

• last payment you make

Which type of loan will usually give you the best rate and terms?

• Family Loan

• VA Loan

• Conventional Loan

• FHA Loan

A lease should contain which of the following information?

• address of the property

• terms of the rental

• security deposit terms

• local restaurants

If someone spends so much of their income on the costs of homeownership that they struggle to reach their other financial goals, they are...

• house poor

• apartment rich

• financially smart

• relaxed and having fun

Which of the following are Ramsey's money principles?

• Save

• budget

• live on less than you make

• buy the cheapest car you can find

Before you buy a house, you should do which of the following?

• Buy life insurance

• Buy earthquake insurance

• be completely out of debt

• have a credit score of at least 700

Which of the following is true?

• You should buy the most expensive home you can qualify for

• Buying a home if you plan on living in an area for six months is an excellent idea

• renting is a great option for many people

• credit is king