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Personal Finance Chp 7 Review 2

Total questions: 20

Worksheet time: 40mins

Name
Class
Date
1.

Renting is a wise choice for someone who wants _______

a)

privacy

b)

mobility

c)

space

d)

a large backyard

2.

A _______ is someone who is familiar with the local housing market.

a)

tenant

b)

librarian

c)

real estate agent

d)

homeowner

3.

The legal document that defines the conditions of the rental agreement between the tenant and the landlord is called a _______.

a)

mortgage

b)

security deposit

c)

deed

d)

lease

4.

The value of the house minus the amount still owed on the money borrowed to purchase it is called _______.

a)

mortgage

b)

equity

c)

points

d)

renters insurance

5.

The most popular type of housing in the United states is the _______.

a)

mobile home

b)

condominium

c)

single-family dwelling

d)

duplex

6.

A _______ is a person who evaluates a house and land for a buyer.

a)

home inspector

b)

real estate agent

c)

tenant

d)

landlord

7.

The _______ is the amount that the owner asks for the house.

a)

listing price

b)

points

c)

down payment

d)

mortgage

8.

A(n) ___________ has an interest rate that increases or decreases during the life of the loan.

a)

Adjustable-Rate Mortgage (ARM)

b)

Principal Balance

c)

Fixed-Rate Mortgage

d)

An escrow account

9.

In the first years of a mortgage, most of the monthly payment goes toward paying off the (a)   .

10.

When homeowners (a)   , they take out a new mortgage at a lower interest rate.

11.

The ability to move easily from place to place is called (a)   .

12.

A(n) (a)   is an estimate of the current value of a property.

13.

An amount of money paid to the owner of a property by an tenant to guard against any financial loss or damage that the tenant might cause is called a(n) (a)   .

14.

Select 3 services that a real estate agent is responsible for

a)

Negotiate a purchase price

b)

Find a house

c)

Sell the house without your knowledge

d)

Handle the financial aspects of the sale

e)

Decorate the home for you

15.

Select 3 advantages of renting over buying

a)

A sense of stability and permanence

b)

Greater mobility

c)

Lower initial costs

d)

Fewer responsibilities

e)

Tax deductions

16.

Select 3 benefits of owning a home

a)

A sense of stability and permanence

b)

Not tied to a mortgage

c)

Have pets

d)

Fewer responsibilities

e)

Tax deductions

17.

Select 2 advantages of a fixed-rate mortgage

a)

Offer peace of mind because monthly payments always remain the same

b)

The rate changes according to economic indicators

c)

Your rates will change according to the terms of your agreement with the lender.

d)

Guarantee a particular interest rate

18.

Once your house is paid off, you still need to pay ____________ & ___________ each month, in addition to utilities and other household maintenance costs.

(a)  

19.

What 4 things are included in your monthly payment to a lender?

a)

Mortgage Payment

b)

Property Taxes

c)

Down Payment

d)

Home Insurance

e)

PMI (if applicable)

20.

Select 3 types of Closing Costs

a)

Security Deposit

b)

Title insurance

c)

Appraisal Fees

d)

Home repair costs

e)

A fee for recording the deed