Understanding the Costs of Buying a House

What is the typical range of closing costs as a percentage of the home purchase price?

• 10% - 15%

• 5% - 10%

• 2% - 6%

• 1% - 3%

What is the primary benefit of making a 20% down payment?

• Avoiding private mortgage insurance (PMI)

• Securing a government-backed loan

• Avoiding property taxes

• Reducing closing costs

What is earnest money used for in the home buying process?

• To cover property taxes

• To pay for homeowners insurance

• To prove to a seller that you are serious about buying their home

• To pay for moving costs

What is the average cost of a local move?

• $3,000

• $500

• $1,700

• $5,000

What is the purpose of an escrow account in relation to property taxes?

• To cover closing costs

• To pay for moving expenses

• To keep funds for property taxes and home insurance

• To hold funds for future property repairs

What is the average monthly cost of home utilities for American homeowners?

• $362

• $270

• $500

• $150

What percentage of a home's value should be budgeted annually for maintenance and repairs?

• 0.5% - 1%

• 1% - 3%

• 3% - 5%

• 5% - 7%

What is a benefit of starting an emergency fund before buying a home?

• To reduce property taxes

• To avoid PMI

• To pay for unexpected repairs

• To cover closing costs

What is a potential cost associated with homeowners association (HOA) fees?

• Property taxes

• Home insurance

• Utility bills

• Shared common area maintenance

What should you ask the seller regarding appliances when buying a home?

• If the appliances are under warranty

• If the appliances are energy efficient

• How much the appliances cost

• Which appliances are included with the house