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Buying a house, borrowing, and credit

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Realtor

a)

represents buyer or seller

b)

The portion of the loan that is charged with interest to the borrower

c)

a professional who acts as an intermediary between a consumer and an insurance company

d)

a person who buys and sells goods or assets for others

2.

Loan

a)

A legal document that transfers title from one person to another, usually real estate

b)

The amount of the house that you have paid for, or the amount you would get if you sold the house

c)

Money borrowed and must be repaid with interest

d)

Free money, a gift, from your bank

3.

Down Payment

a)

The proportion of the loan that is charged with interest to the borrower

b)

A percentage of the sale price that goes to the seller's and buyer's agent.

c)

an amount of money paid before a particular piece of work or a particular service is done or received

d)

An initial cash payment that is made when something is bought on credit

4.

Mortgage

a)

A bank loan for the purchase of a home

b)

A legal document that transfers title from one person to another, usually real estate.

c)

The amount of money you borrow, or the amount you owe before interest is calculated.

d)

The up front payment for your landlord

5.

Loan principle

a)

A bathroom that contains a toilet and sink but no bathtub or shower.

b)

A bank loan for the purchase of a home.

c)

any value-added loan where the proceeds are used to finance construction of some kind.

d)

The amount of money you borrow, or the amount you owe before interest is calculated.

6.

The cost of borrowing money is referred to as...

a)

interst

b)

credit

c)

credit line

d)

Annual percentage rate

7.

There’s no penalty if I pay my credit card balance after the due date.

a)

true

b)

false

8.

Having a high credit score will allow lenders to give you lower interest rates.

a)

true

b)

false

9.

To build a good credit history you should

a)

open as much credit as possible quickly

b)

pay on time and as much of your balance as possible

c)

use the maximum credit allowed on all your credit cards

d)

all of these

10.

When renting you _____ of your take-home pay on housing

a)

don't want to pay over 25%

b)

pay half

c)

pay 35-40%

d)

should pay over 25%

11.

Can certain places you move be cheaper than other places and will that effect you salary based on that difference

a)

true - will not effect your salary

b)

false - will not effect your salary

c)

true - will and can lower or raise your salary based on your other payments

d)

false - it will not effect your salary but, your other payments will change

12.

When renting most will require ___

a)

first months rent

b)

last months rent

c)

security deposit of a third months rent

d)

all of these