WorksheetsPF - Chapter 11 - Housing and Real Estate - Review
Total questions: 36
Worksheet time: 18mins
It's best to develop good ________ now instead of waiting until you are on your own.
A. Money habits
B. Diet and exercise plans
C. Investing strategies
D. Study habits
Renting is a great option for many people.
A. True
B. False
Your rent payment should total no more than ________% of your take-home pay.
A. 50
B. 15
C. 75
D. 25
What does cost of living refer to?
A. How much of your monthly income is budgeted specifically for your rent or mortgage
B. The average cost of the basic goods and services needed to maintain a certain standard of living
C. The level of wealth, comfort, material goods and necessities available to a group of people
D. How wealthy or poor you are at the time of purchasing your first home
When you're ready to buy a house, the best option is a ________.
A. 20-year VA loan
B. 15-year fixed-rate conventional mortgage
C. 30-year equity loan
D. 30-year fixed rate mortgage
Making periodic payments to a landlord for the use of their property is called ________.
A. Buying
B. Renting or leasing
C. Investing in real estate
D. Security deposit
You should rent until you are able to ________.
A. Buy a home the right way
B. Become a landlord someday
C. Invest in stocks
D. Buy amenities
As you shop around and compare rent prices, remember that paying extra for ________ is not worth it if it keeps you from reaching your financial goals.
A. Amenities
B. Mortgages
C. Tax brackets
D. Security deposits
You need to be completely out of debt, have a fully funded emergency fund, and have saved enough cash for a down payment before you ________.
A. Buy a house
B. Lease a house
C. Rent a house
D. Sell a house
The only time it's okay to borrow money if you can't pay 100% in cash is ________.
A. Getting a car lease
B. For home improvement projects
C. Buying a home (mortgage)
D. Renting a home
Buying a house while __________ can put your _____________ at risk.
On a budget; social life
In debt; home purchase
Debt-free; renters insurance
Getting pre-approved; life
You should buy a home, even if you can't afford it yet. Renting is a waste of money.
True
False
You decision to rent of buy depends on your ___________--
Financial Situation
Income Tax
Friends' Opinions
Feelings Towards Renting or Buying
Living on campus at college will help you ___________ living on your own,
while living off campus will require you to ____________
Ease into; pay for rent, utilities, and groceries
Dive into; live with your parents
Enjoy; find roomates
Get used to; cut half of your college courses
A house is an asset that typically will __________ value over time
Depreciate in
Increase in
Stay the same
Decrease in
A fixed rate mortgage has a ___________ mortgage rate for __________ years
Set; a set number of
Good; 15
12%; 30
High; a large amount
What type of interest rate is locked in and won't change for the life of the loan
15 year
Equity
Adjustable rate
Fixed rate
A leasing contract ...
is a legal doc that allows renter to use property for a pd of time
should be signed immediately, even before reading it
is something roommate owes taxes on when they move in with current renter
can be terminated at any time without any fees or penalties
Its important to read your leasing contract, because once you sign it, it is enforceable by law
True
False
When someone spends so much of their income on the costs of homeownership
that they struggle to reach their other financial goals, they are
Wealthy
House Poor
Wise Homeowners
Rent Poor
If you look at long term costs, __________ is usually the better deal
Homeownership
Renting
Leasing
Maintaining
No matter what path you choose to take after high school, the money principles stay the same, they are:
Live on more than you make and debt dominates all
Save, budget, stay out of debt, live on less than you make and be generous
Only use a debit card for purchases, rent-to-own loans are king, and don't open a savings acct
Invest before anything else and budget if you have time
Which type of loan is not secured by a govt entity and usually has the best rate and term.
FHA
VA
Family
Conventional
What info should a lease contain?
names and numbers of closest malls
agreement that your rent will only be paid on a credit card
acknowledgement clause, your name, and local restaruants
property address, rental term, security deposit terms and pet fees
What is your mortgage principal
largest amount of money you are legally allowed to borrow
down payment needed to get a mortgage
amount borrowed (that must be repaid) to buy home
1st pmt you make on your new home
Learning about the costs of living before you need to cover them and
creating good money habits early are both examples of
personal responsibility
poor money mgmt
wealth building
being a consumer
To make living with a roommate more peaceful while yo are saving money ...
communicate, respect, considerate
roommate pays more rent than you
ignore them = avoiding conflict
your best friend will make the best roommate
It is impossible to get a mortgage without a credit score
True
False
After you hire a real estate agent, next step in the process is to _____________
close your new home
make an offer on a home
start looking for homes in your budget range
get a home inspection
Equity is the difference between what you still owe on your home and what it is worth
True
False
Can you list ways someone can save money on rent
Yes
No
Can you list some costs of living on your own?
Yes
No
Can you explain how renting or buying is connected to someone's ability to be generous?
Yes
No
Can you list some questions to ask an adult to help you prepare to be financially independent someday?
Yes
No
Can you explain why a 15-year-fixed-rate mortgage is better than a 30-year?
Yes
No
Are you ready for tomorrow's test over chapter 11?
Yes
No
