Buying a House Vocabulary

A person would like to purchase a home. The type of loan chosen requires that they pay 3.5% of the home price before they begin making monthly payments. They will be paying a(n)

• down payment

• interest

• car payment

• credit score

Someone applied to get a home loan, but they were denied because they had missed many payments on previous loans. They were probably denied because they had a low...

• income

• self esteem

• credit score

• interest rate

USDA, VA, FHA, and Conventional are all types of...

• car dealerships

• loans

• tax agencies

• incomes

A person wants to pay their mortgage off early. Every month they pay extra money towards the ....

• income

• interest

• principal

• credit

What measure compares the amount of money a person is responsible for paying each month to the amount of money they make?

• debt to income ratio

• credit score

• principal

• interest

When a person takes out a loan, they are responsible for paying back what they borrowed as well as ________________ (a percentage of the loan amount paid to the lender in return for allowing them to borrow the money)

• Taxes

• Interest

• Principal

• Title

_____________ covers your home's structure and items inside in case of fire or other misfortune.

• Property Taxes

• Homeowner's Insurance

• Mortgage Lender

• Loan officers

_______________ are a percent of your home's value that must be paid yearly to help fund local government entities.

• credit scores

• property taxes

• mortgage insurance

• down payments

True or False? Property tax rates vary based on location?

• True

• False

Some loans require the buyer to pay _______________ to protect the lender if the buyer stops paying for the loan.

• Mortgage Insurance

• Property Taxes

• Homeowner's Insurance

• Principal