Chapter 11 Review- Personal Finance

It's best to develop good _______ now instead of waiting until you're on your own to figure it all out.

• diet and exercise plans

• money habits

• real estate investments

• friendships

Renting is a great option for many people.

• True

• False

Your rent payment should total no more than ____ percent of your take-home pay.

• 10

• 20

• 25

• 50

When you are ready to buy a house, the best option is a _______.

• 20-year VA loan

• 15-year fixed-rate conventional mortgage

• 30-year equity loan

• 30-year fixed rate mortgage

What does cost of living refer to?

• How much of your monthly income is budgeted specially for your rent or mortage.

• The average cost of the basic goods and services needed to maintain a certain standard of living.

• The level of wealth, comfort, material goods, and necessities available to a group of people.

• How wealthy or poor you are at the time of purchasing your first home.

Making periodic payments to a landlord for the use of their property is called

• Down payment

• Buying

• Renting or leasing

• Security deposit

You should rent until you are able to ____.

• Buy a home the right way

• Become a landlord someday

• Invest in stocks

• Buying amenities

Buying a house while ____ can put your home purchase at risk.

• in debt

• getting pre-approved

• debt-free

• on a budget

Your decision to rent or buy depends on your _____.

• feelings towards renting or buying

• friends' opinions

• income tax

• financial situation

As you shop around and compare rent prices, remember that paying extra for _____ is not worth it if it keeps you from reaching your financial goals.

• Amenities

• Mortgages

• Tax brackets

• Security deposits