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WorksheetsRenting/Leasing vs Buying
Total questions: 25
Worksheet time: 13mins
Which of the following statements is TRUE?
an adjustable rate mortgage will give you a fixed amount each month that you will have to pay for your mortgage payment
an adjustable rate mortgage is safer than an adjustable rate mortgage because you will know in advance what your payment is each month
a fixed rate mortgage is safer than an adjustable rate mortgage because you will know in advance what your payment is each month
none of these are true
Someone might choose to own a car instead of leasing a car because:
it will be less expensive
it will be more expensive
it could lead to lower repair expenses
it could be sold later on to make some money back on the vehicle
Some apartment/condo rental leases might require you to purchase which of the following?
a down payment
rental insurance
depreciation
a car or other vehicle
Most mortgages are for how many years?
10
15
30
either 15 or 30
If you don't pay your mortgage on time, what might happen?
the bank might foreclose on your house
you might have to declare bankruptcy
you might not be able to get credit for 7-10 years
all of these are things that might happen if you don't pay your mortgage on time
A car is a(n) ________________________ asset.
appreciating
depreciating
The amount of money paid toward purchasing a home is called:
security payment
underwriting payment
down payment
loan payment
Car leases usually have:
unlimited terms
minimum mileage agreements
maximum mileage agreements
none of these
How can you reduce your monthly mortgage payment?
by getting a higher interest rate
by putting less money as a down payment
by shortening the term of the loan
by lengthening the term of the loan
Money collected by the landlord and paid by the tenant that are used only if the tenant causes damage to the property that is rented is called a:
security payment
down payment
depreciation payment
mortgage
Which of the following might be required of the tenant when it comes to a typical housing lease?
the tenant might have to repair types of damage to the property
the tenant might have to avoid participating in illegal activity on the property
the tenant might have to purchase renter's insurance for the property
all of these might be required
Which factors will affect the size of your monthly mortgage payment?
the interest rate
how much is borrowed (principal)
the size of your down payment
all of these
A tenant might need permission from the landlord for which of the following if s/he is renting?
modifying a kitchen
having guests sleep over or stay for a period of time
painting a wall in the unit
all of these
Which is an advantage of owning a home over renting?
it is yours and you can make all decisions
you build equity over time
you can sell it later on for a profit if it increases in value
all of these
Which of the following is an advantage of renting over purchasing a home?
you are responsible for maintenance
you don't have to come up with a very large down payment
you must put down a security deposit
it builds equity over time
The biggest factor in determining the cost of a mortgage is the total cost of the home.
true
false
Renting might require a lease that often costs money to break.
true
false
Cars typically lose the most value in the second year after they are purchased.
true
false
Renting a home provides greater flexibility but can lead to higher costs in the long-term.
true
false
A loan used to finance the purchase of real estate is called a mortgage.
true
false
Putting a down payment of at least 10 percent on a home is usually what banks suggest.
true
false
A home is a depreciating asset.
true
false
With certain situations, a new car might actually wind up costing you less than an old car.
true
false
A person who occupies rented property:
landlord
tenant
mortgage
none of these
A written agreement between a a tenant and a landlord:
mortgage
lease
cooperative
assessment
