Buying a House Quiz

What is one advantage of buying a house instead of renting?

• You don't have to worry about maintenance

• You can build up equity in your own property

• You don't have to pay property taxes

• You can easily move to a different location

What is the purpose of earnest money when buying a house?

• To cover the closing costs

• To compensate for any problems with the house

• To show that you are serious about buying the house

• To pay for the home inspection

What is the recommended down payment when buying a house?

• 1-3% of the purchase price

• 50-60% of the purchase price

• 10-20% of the purchase price

• 30-40% of the purchase price

What are closing costs associated with buying a house?

• Property taxes

• Fees charged by various people involved with the home sale

• Monthly mortgage payments

• Cost of repairs and maintenance

What is the difference between a fixed mortgage and an adjustable mortgage?

• Fixed mortgage has a fixed term, while adjustable mortgage has a variable term

• Fixed mortgage has a variable interest rate, while adjustable mortgage has a fixed interest rate

• Fixed mortgage has a variable term, while adjustable mortgage has a fixed term

• Fixed mortgage has a fixed interest rate, while adjustable mortgage has a variable interest rate

What should you consider before taking on the responsibility of homeownership?

• All of the above

• Moving expenses

• Miscellaneous expenses

• Appliances and furniture

What does a monthly mortgage payment consist of?

• Principal and interest only

• Interest and insurance only

• Taxes and insurance only

• Principal, interest, taxes, and insurance

What does a bank or lending institution check before offering a home loan?

• Credit history and loan amount

• Income and employment status

• All of the above

• Value of similar homes in the area

What type of loan is usually needed to buy a house?

• Auto loan

• Mortgage loan

• Student loan

• Personal loan