Renting vs. Buying a Home

A security deposit covers the rent for the first month when moving into an apartment.

• True

• False

A ___________ deposit refers to money held to cover possible damage in an apartment.

• Cleaning

• Security

• Telephone

• Utilities

The agreement between a renter and a landlord is:

• Security Deposit

• Mortgage

• Lease

• Deed

Buying a home will usually have fewer costs then renting.

• True

• False

A common disadvantage of buying a home is:

• Few financial benefits

• Limited mobility

• Restrictions on decorating and having pets.

• Conditions in the lease.

The amount of a mortgage a person can afford is affected by:

• The location of the house

• Her or his income

• The cost of insurance

• Her or his age

A larger down payment will reduce the amount of the mortgage needed.

• True

• False

A common moving-in cost for an apartment would be:

• A down payment

• Building insurance

• Real estate taxes

• A security deposit

A roomate may reduce the financial burden of renting an apartment.

• True

• False

The home-buying process starts with:

• Locating and evaluating a home.

• Pricing the property.

• Determining homeownership needs.

• Obtaining an appraisal of the property.