The Costs and Benefits of Purchasing a Residence

What is one benefit of renting a home?

• Building equity

• Tax deductions

• Personalizing the home

• Easy to move at the end of the lease

Which of the following is a cost associated with buying a home?

• No equity

• Property taxes

• Restrictions on home modifications

• Increased rent costs

What is a benefit of making a larger down payment when buying a home?

• Increases the principal

• Reduces the principal and interest

• Increases property taxes

• Increases mortgage costs

What is a potential risk of buying a home?

• Easy to move

• No maintenance costs

• Foreclosure if mortgage payments are not made

• No property taxes

Why is a home inspection important when buying a house?

• To avoid paying property taxes

• To ensure the property is in good condition

• To reduce the down payment

• To increase the sale price

What is one advantage of getting pre-approved for a mortgage?

• Higher interest rates

• Saves time and possibly money

• Increases the down payment

• Reduces the need for a real estate agent