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Housing Options

Total questions: 55

Worksheet time: 34mins

Name
Class
Date
1.

What are the pros of buying a house?

a)

Building equity, stability, and potential tax benefits.

b)

Higher upfront costs, potential for depreciation, and limited flexibility in location.

2.

What are the cons of buying a house?

a)

High property taxes, difficulty in selling, potential for foreclosure

b)

High upfront costs, ongoing maintenance and repairs, limited flexibility to move, and potential decrease in property value.

3.

What are the pros of renting a house?

a)

Limited customization options, lack of stability, and potential for difficult landlords.

b)

Flexibility, lower upfront costs, and less responsibility for maintenance and repairs.

c)

Higher upfront costs, limited flexibility, and more responsibility for maintenance and repairs.

d)

Less privacy, limited control over the property, and potential for rent increases.

4.

What are the cons of renting a house?

a)

Limited control, potential rent increases, and restrictions on customization.

b)

Lack of stability, maintenance responsibilities, and difficulty in building equity.

5.

What factors should be considered when buying a house?

a)

Number of bedrooms, number of bathrooms, and square footage.

b)

Proximity to schools, shopping centers, and public transportation.

c)

Availability of parking, backyard space, and natural lighting.

d)

Location, price, size, condition, neighborhood, amenities, and future resale value.

6.

What factors should be considered when renting a house?

a)

Number of bedrooms, proximity to schools and shopping centers, availability of parking

b)

Pet policy, maintenance responsibilities, utilities included in rent

c)

Accessibility to public transportation, noise level, natural lighting

d)

Location, rental price, size and layout of the house, amenities, lease terms, landlord reputation, and the condition of the property.

7.

What are the financial implications of renting a house?

a)

Property taxes, homeowner's insurance, and mortgage payments.

b)

Homeowner association fees and property management fees.

c)

Monthly rent payments, security deposit, utility bills, maintenance costs, and potential rent increases.

d)

Costs of purchasing furniture and appliances for the rental property.

8.

What are the financial implications of buying a house?

a)

The financial implications of buying a house include the down payment, mortgage payments, property taxes, homeowners insurance, maintenance costs, and closing costs.

b)

The financial implications of buying a house include the down payment, mortgage payments, property taxes, homeowners association fees, and closing costs.

c)

The financial implications of buying a house include the down payment, rent payments, property taxes, homeowners insurance, and maintenance costs.

d)

The financial implications of buying a house include the monthly rent, property taxes, homeowners insurance, maintenance costs, and closing costs.

9.
Which Type of housing: Three Bedroom Ranch
a)
Apartment
b)
Single-Family
c)
Condo
d)
Efficiency 
10.
Rented living space in a high-rise building 
a)
Single-Family Housing
b)
Manufactured
c)
Apartment
d)
Cooperative 
11.

What is the loan from the bank for the purchase of a house?

a)

Credit Score

b)

Mortgage

c)

Rent

d)

Pool

12.

Which statement below is TRUE?

a)

Buying a home has the potential for more expenses.

b)

Renting has the potential for more expenses.

13.

The agreement between a renter and a landlord is:

a)

Security Deposit

b)

Mortgage

c)

Lease

d)

Deed

14.

A larger down payment will reduce the amount of the mortgage needed.

a)

True

b)

False

15.

The original amount of a loan, excluding interest.

a)

Principal

b)

Equity

c)

Gross Income

d)

Application

16.

A public record of how you've managed your credit and debt in your past, including credit cards, loans and other leases.

a)

Credit History

b)

Credit Reprort

c)

Credit Score

d)

Credit Limit

17.
When signing a lease, it is recommended that you
a)
give it a quick review and sign before someone else gets the apartment you want
b)
read carefully and sign only when you  understand  what everything means
c)
read carefully and sign even though you are not sure what some of the terms mean
d)
read carefully and sign, even though you know that you will not agree to all of the terms stated
18.
The name for a renter is:
a)
landlord
b)
rentee
c)
tenant
d)
lease 
19.
Which of the following should you find out before agreeing to rent an apartment?
a)
are pets allowed
b)
late fees
c)
when is rent due
d)
all of the above
20.

What is a mortgage?

a)

A mortgage is the payment you make each month to the bank so you can own your house at the end.

b)

A mortgage is the money the bank give you each month so they can buy the house from you.

c)

A mortgage is the price you pay to the landlord to rent an apartment

21.

Which of these items are appliances?

a)

b)

c)

d)

22.

What are two examples of amenities?

a)

electricity

b)

a gas fireplace

c)

a double garage

d)

a roof

23.

If you live in an apartment, what payment do you make each month?

a)

a mortgage payment

b)

a rent payment

c)

a security deposit

d)

a maintenance fee

24.
Which of the following is an advantage to renting a place to live?
a)
Limited expenses for maintainance.
b)
Limited expenses for utilities
c)
Limited options for size and location
d)
Limited rights for redecorating
25.
The terms of a lease should include all of the following EXCEPT the
a)
amount of the rent and any late fees
b)
names of the persons who live next door
c)
policies you are expected to follow
d)
names of all roommates and the landlord
26.
When signing a lease, it is recommended that you
a)
give it a quick review and sign before someone else gets the apartment you want
b)
read carefully and sign only when you  understand  what everything means
c)
read carefully and sign even though you are not sure what some of the terms mean
d)
read carefully and sign, even though you know that you will not agree to all of the terms stated
27.
A one time fee to cover damages beyond normal wear and tear is a
a)
Eviction
b)
Rental paymnent
c)
Security Deposit
d)
Amenities
28.
After you signed the lease, you decided to have 2 roommates to share the cost.  Are they legally responsible to help you pay the rent?
a)
Yes
b)
No
29.
Experts agree that as a rule, a prospective renter should budget ______________ of their gross income for rent.
a)
20% to 25%
b)
25% to 30%
c)
30% to 35%
d)
35% to 40%
30.
If a person makes about $6000/month, what is the most they should spend on rent?
a)
$1200
b)
$1500
c)
$1800
d)
$2100
31.

A MORTGAGE THAT GUARANTEES A FIXED OR UNCHANGING INTEREST RATE FOR THE LIFE OF THE LOAN.

a)

FIXED RATE MORTGAGE

b)

ADJUSTABLE RATE MORTGAGE

c)

INTEREST ONLY MORTGAGE

d)

BALLOON MORTGAGE

32.

A LOAN USED TO PAY FOR A HOME

a)

MORTGAGE

b)

TITLE LOAN

c)

HOME EQUITY LOAN

d)

SECURED LOAN

33.

AN OWNER MUST RETURN A TENANT'S SECURITY DEPOSIT WHEN THE RENTER MOVES OUT.

a)

TRUE

b)

FALSE

34.

WHEN YOU RENT HOUSING, YOU ARE RESPONSIBLE FOR THE REPAIR OF THE BUILDING.

a)

TRUE

b)

FALSE

35.

HOMEOWNERSHIP IMPROVES YOUR CREDIT RATINGS

a)

TRUE

b)

FALSE

36.

UTILITIES INCLUDE ___.

a)

HEAT, WATER, AND ELECTRICITY

b)

RENT AND RENTER'S INSURANCE

c)

DOWN PAYMENT AND SECURITY DEPOSIT

d)

FOOD, INTERNET AND CELL PHONE

37.

A LEASE SPECIFIES THE RIGHTS AND RESPONSIBILITIES OF THE ___.

a)

TENANT

b)

PROPERTY OWNER

c)

TENANT AND PROPERTY OWNER

d)

TENANT, BUILDER AND PROPERTY OWNER

38.

A LEASE IS A ___.

a)

CASUAL AGREEMENT

b)

LEGAL DOCUMENT

c)

SLIDING SCALE OF PAYMENTS

d)

CLOSING COST SCHEDULE

39.

WITH A FIXED RATE MORTGAGE, IF INTEREST RATES RISE, THE MORTGAGE PAYMENT WILL ___.

a)

STAY THE SAME

b)

GO UP

c)

GO DOWN

d)

BE ELIMINATED

40.

Renting is a wise choice for someone who wants _______

a)

privacy

b)

mobility

c)

space

d)

a large backyard

41.

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

42.

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

43.

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

44.

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

45.

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)

46.

Living on your own can be expensive.

a)

True

b)

False

47.

A house loses value over time.

a)

True

b)

False

48.

An investment makes your money work for you._

a)

True

b)

False

49.

To afford something is to _____________.

a)

Buy it now

b)

buy it later

c)

be able to pay for something

50.

Interest is _________________.

a)

money you have in the bank

b)

Money you pay to borrow money

51.

An Acknowledge Clause is the portion of a legal contract signed by both parties,

a)

True

b)

False

52.

The cost of living is the extreme cost of the basic goods and services needed to sustain a certain standard of living.

a)

True

b)

False

53.

House poor is spending so much of your income on the costs of home ownership, so you struggle financially.

a)

True

b)

False

54.

Private Mortgage Insurance protects the lender.

a)

True

b)

False

55.

Mortgage Principal is the amount borrowed to purchase a house.

a)

True

b)

False