UNHS - Personal Finance - Self check 13

An apartment with a bathroom and one big room that serves as living room, kitchen, and bedroom is a

• studio apartment.

• townhome.

• condominium.

• landominium.

What is an ADVANTAGE of renting a home?

• more control over your living space

• property is likely to increase in value

• not having to pay property taxes

• building homeowner’s equity

A detailed list of property items and their condition that you complete when you move into a rental property is a

• bill of lading.

• rental inventory checklist.

• housing cooperative.

• purchase agreement.

Suppose a house is advertised for $250,000. The buyer and seller negotiate a price of $238,000. What is the

MARKET VALUE of the house at this time?

• $250,000

• $238,000

• $12,000

• $488,000

To apply for a mortgage, you must submit

• a subprime mortgage.

• a contingency clause.

• a loan application package.

• a lease.

Refer to Figure 12-3 on page 331 in your textbook. Section IV of the URLA requests information about

• the terms of the mortgage.

• assets and liabilities.

• monthly income.

• employment.

The longer you take to pay off a home loan, the interest you will pay.

• more

• less

What is an ADVANTAGE of owning a house?

• less responsibility for maintenance

• greater mobility

• homeowner’s equity

• more free time

A fee that lenders charge at closing, and that equals 1 percent of a mortgage, is a(n)

• title.

• escrow account.

• down payment.

• point.

Look at Figure 12-5 on page 333 of your textbook. What is the difference in monthly payment between a 4

percent interest rate and an 8 percent interest rate?

• $385

• $282

• $183

• $770