WorksheetsJack & Jill - MAR
Total questions: 30
Worksheet time: 16mins
What is Real Estate?
Equity that turns into something real
Anything that costs money
Land, plus permanent improvements
Your primary residence
Which answer is NOT an important reason to own real estate ?
There is a finite amount of land
Builds wealth
Usually grows in value
It is the only way to build wealth
It diversifies your investments
What is equity in real estate?
Amount that is owed on the property
Value of the property
Value of the county tax commissioner
Market value minus what is owed on it
What is the standard way of determining the value of real estate?
A licensed appraiser
What the market is willing to pay
What you think it's worth
The amount you paid for it
What is an appraisal?
An unbiased professional opinion of a property's value
A report provided by the county as to tax value
The amount a homeowner's insurance policy covers
What your neighbor's home sells for
What are some ongoing problems with appraising and Black homeowners?
Not enough Black appraisers
The Black homeownership rate has dropped
Black people don't typically get their homes appraised
Appraisal bias against Black homeowners
What is the difference between tax value and market value?
Tax value is usually lower than market value
Tax value is what the county uses to access taxes
Market value is what a typical buyer would be willing to pay
They are the same thing
What is the role of a Real Estate professional?
To help you sell your house
To help you buy a house
To only write the contract
To help you both sell and buy a new home
What is the role of a lender in real estate transactions?
To help you pay for the move
To help you buy the house with a mortgage
To help you determine your credit score
To help you determine if you should sell
What is the difference between a Realtor and a Realtist?
One is for selling and the other for buying
They are the same thing
One has a license to be a real estate professional and the other does not
One is a trademark that would not allow Blacks to use
What is interest?
The cost of borrowed money
The cost of a mortgage
The amount of money you are able to get from a mortgage
The amount you pay up front to get a loan
What is the FICO score?
Fair Isaac Corporation score to assess credit worthiness
Front Issue Commodity Only to get mortgages
Fair Incubator Corporation to start a business
Frank Inks Coop to help make mortgage payments
What is the overall homeownership rate in America?
87%
43.5%
72.3%
65.4%
What is the Black home ownership rate in America?
36.5%
40.6%
52.8%
60.1%
What are some of the main factors that affect Blacks ability to buy a home?
Desire
Down payment
Credit scores
Income & assets
What are some economic advantages to buying vs renting?
Prestige
Can paint the walls any color
Don't have to hear your neighbors
Building wealth with equity
How old do you have to be to buy and sell property?
As young as 12
16 years old
Usually 18, depending on the state
Usually 21, depending on the state
Since you can't eat or spend housing equity, how is it typically liquidated or turned into money?
By buying bonds against it
By selling it
By renting it out
By taking out a mortgage on it
What is gentrification?
When white people steal property
When there is blight in the city center
When black people move to the suburbs
When a poorer area sees an influx of white and better resourced people
Which is NOT a negative consequence of gentrification?
Increased property taxes
Displacement of legacy residents
Social capital is reduced
New stores and amenities are developed
What does the word, "gentrification" come from?
Originally from London from the word "gentry"
Originally from the Bay area from the word "gentle"
Originally from India from a word meaning to take over
Originally from a Latin word meaning the rich
What are property taxes?
Money collected when you purchase a home
Money collected annually on the value of your home
Money collected from people with school aged children
Money paid by business and corporations only
What does it mean to own a home free & clear?
To be exempted from paying property taxes
When the value of the house is more than what is owed on it
To not owe a mortgage or other lien on the property
To go into foreclosure
If you own your house free & clear are taxes and homeowner's insurance required?
No
Yes
homeowner's insurance is required but property taxes are not
Property taxes are required but homeowner's insurance is not
What is a security deed?
A legal document showing you owe a mortgage
A public document that shows you've purchase a property
A private document that only you see
A deed that shows you own the property
How long is the typical mortgage for?
10 years
20 years
30 years
40 years
What is a mortgage?
A loan used to buy a car
A stock that is an asset
A loan to buy a piece of real estate
A loan used to pay for college
Which of these are NOT a type of mortgage?
Condo Mortgage
Reverse Mortgage
Home Equity Line of Credit
Conventional
What are some ways you can lose your home?
Not making your mortgage payment
Not paying your property taxes
Not paying your homeowner's insurance
Not complying with the mortgage contract
Why is owning a home considered the FOUNDATION for building wealth?
Once you pay off the mortgage it is something you own
It's more important than buying stocks and bonds
It allows you to pass on to your children
Easiest way to build equity
