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Buying a House

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

loan

a)

Money borrowed, must be repaid with interest

b)

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

c)

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

2.

earnest money

a)

A percentage of the sale price that goes to the seller's and buyer's agents. Usually paid by the seller.

b)

A deposit made to a seller showing the buyer's good faith in a transaction. Refundable with some conditions.

c)

Coverage against damages to the house or possessions in the home. Also, liability coverage against accidents in the home or on the property.

3.

closing costs

a)

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

b)

When a person pays off a mortgage faster than planned

c)

Fees paid at the sale of a home. May be paid by either the buyer or the seller.

4.
In the early years of a 30-year mortgage loan,
a)
equal amounts go to principal and interest.
b)
most of the payment goes to the principal.
c)
most of the payment goes to interest.
d)
Principal is more than interest
5.

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

6.

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.

7.

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

a)

interst

b)

credit

c)

credit line

d)

Annual percentage rate

8.

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

9.

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

10.

What information do you need to provide lenders to get preapproved for a mortgage?

a)

Pay stubs, credit check, bank statements

b)

Down payment amount and desired mortgage amount

c)

W-2 statements and signed, personal and business tax returns

d)

All of the above

11.

What’s the average price of a home in the US in 2021?

a)

408,800

b)

$293,349

c)

$490,944

d)

$683,996

12.

What fees can you expect when closing on a home

a)

Application fee

b)

Closing fee

c)

Home inspection

d)

All of the above

13.

PMI stands for which of the following?

a)

Principal Mortgage Income

b)

Partial Means Index

c)

Private Mortgage Insurance

d)

Private Mortgage Income

14.

If you don't have enough money to put down 20% on a house then you will probably have to pay ________?

a)

PMI-Personal Mortgage Investment

b)

MPI-Mortgage Primary Insurance

c)

PMI -Private Mortgage Insurance

d)

PIM-Personal Insurance for Mortgages