Fin Lit: Independent Living

A lease is a written agreement between a bank and a borrower.

• True

• False

According to financial experts, a renter should allow no more than _____% of their gross income for rent.

Front-end ratio is the ratio of monthly ​ (a)   to monthly ​ (b)   and is expected to be less than ​​ (c)   .

• housing expenses
• gross income
• expenses (all)
• home owner's insurance
• 28%
• 36%
• 30%

Back-end ratio is the ratio of monthly ​ (a)   ​ to monthly ​ (b)   and is expected to be less than ​ (c)   .

• gross income
• home owner's insurance
• expenses (all)
• housing expenses
• property taxes
• 36%
• 28%
• 30%

Aja made a 20% down payment on a house and was selling for $185,000. Therefore, she should expect her closing costs to be about $3,700 to _________.

The Jacksons sublet their summer cottage during the winter and spring months. For each month they receive 72% of their monthly mortgage of $1,750. How much do the Jacksons earn for the six-month period?

Match each description with the best term.

• co-op

• Occupants are investors who own shares in the entire property and not individual units.

• landominium

• Occupants pay monthly housing fee to the landlord who owns the property.

• rental unit

• Occupants individually own both the home and the land.

• condominium

• Occupants jointly own the common parts of the property and individually own their own units.

There are 15,000 shares in Marybeth’s co-op. If Marybeth owns 2% of the cooperative corporation, how many shares does she own?

• 400 shares

• 300 shares

• 200 shares

• 100 shares

Natalie just rented an apartment for $900 a month. She was told that the rent will increase 5.5% each year. About how much will her rent be in 7 years?

• $1,416

• $1,308

• $1,241

• $1,286

The McQuires pay a monthly mortgage payment of $938. They also pay a semi-annual property tax bill of $3,298 and semi-annual homeowner's insurance of $840. The property tax and insurance are paid monthly into an escrow account to their lender. What is their monthly payment to their lender?