PF - Chapter 11 - Housing and Real Estate - Review

It's best to develop good ________ now instead of waiting until you are on your own.

• A. Money habits

• B. Diet and exercise plans

• C. Investing strategies

• D. Study habits

Renting is a great option for many people.

• A. True

• B. False

Your rent payment should total no more than ________% of your take-home pay.

• A. 50

• B. 15

• C. 75

• D. 25

What does cost of living refer to?

• A. How much of your monthly income is budgeted specifically for your rent or mortgage

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

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

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

When you're ready to buy a house, the best option is a ________.

• A. 20-year VA loan

• B. 15-year fixed-rate conventional mortgage

• C. 30-year equity loan

• D. 30-year fixed rate mortgage

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

• A. Buying

• B. Renting or leasing

• C. Investing in real estate

• D. Security deposit

You should rent until you are able to ________.

• A. Buy a home the right way

• B. Become a landlord someday

• C. Invest in stocks

• D. Buy amenities

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.

• A. Amenities

• B. Mortgages

• C. Tax brackets

• D. Security deposits

You need to be completely out of debt, have a fully funded emergency fund, and have saved enough cash for a down payment before you ________.

• A. Buy a house

• B. Lease a house

• C. Rent a house

• D. Sell a house

The only time it's okay to borrow money if you can't pay 100% in cash is ________.

• A. Getting a car lease

• B. For home improvement projects

• C. Buying a home (mortgage)

• D. Renting a home