Homeowners Unit Quiz

What is the principal in the lending context?

• The interest charged on a loan

• The amount of money originally received from the lender

• The fee paid for borrowing money

• The percentage of a sum borrowed

What does the interest rate represent?

• The total amount of money borrowed

• A fee charged by a lender for the use of money

• A percentage of a sum borrowed charged by a lender

• The principal amount of a loan

What is a mortgage used for?

• To pay off credit card debt

• To buy a home or borrow money against a home's value

• To finance a car purchase

• To invest in the stock market

What is the closing date in a property transaction?

• The day the buyer makes an offer

• The day the buyer receives the keys and becomes the owner

• The day the mortgage is approved

• The day the security deposit is paid

What is a security deposit?

• A monthly rent payment

• A one-time payment made to a landlord before moving in

• A fee for breaking a lease agreement

• An insurance policy for property damage

What is included in real estate?

• Personal property like cars

• Only the land itself

• Land, buildings, and physical structures

• Furniture and appliances

What is a Purchase Agreement?

• A contract between a landlord and tenant

• A legally-binding contract signed by the buyer and seller of a property

• A type of mortgage with a fixed interest rate

• An expense added to each mortgage payment

What is a Mortgage?

• A type of insurance for property

• A legally-binding contract for renting a property

• A specific kind of installment loan used to buy a property

• A payment made to show commitment to buying a property

What does Eviction mean?

• The process of selling a property

• The act of forcing someone to move out due to a lease violation

• A type of mortgage with a fixed interest rate

• An expense added to each mortgage payment

What is Earnest Money?

• A monthly rent payment

• A one-time payment to show commitment to buying a property

• An insurance payment for a mortgage

• A type of mortgage with a variable interest rate