WorksheetsDave Ramsey Ch 11 Test
Total questions: 30
Worksheet time: 23mins
It's best to develop good ____ now instead of waiting until you're on your own to figure it all out.
Money habits
Diet and exercise plans
Real estate investments
Friendships
Renting is a great option for many people.
True
False
Your rent payment should total no more than ____% of your take-home pay.
50
15
75
25
What does cost of living refer to?
How much of your monthly income is budgeted specifically for your rent or mortgage
The average cost of the basic goods and services needed to maintain a certain standard of living
The level of wealth, comfort, material goods and necessities available to a group of people
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 ____
20-year VA loan
15-year fixed-rate conventional mortgage
30-year equity loan
30-year fixed rate mortgage
You should rent until you are able to ____.
Buy a home the right way
Become a landlord someday
Real estate investments
Friendships
Buying a house while ____ can put your ____ at risk.
In debt; home purchase
Getting pre-approved; life
Debt-free; renter's insurance
On a budget; social life
Living on campus at college will help you ____ living on your own, while living off campus will require you to ____.
Dive into; live with your parents
Ease into; pay for rent, utilities, and groceries
Get use to; cut half of your college courses
enjoy; find roomate
Your decision to rent or buy depends on your ____.
Feelings towards renting or buying
Friends' opinions
Income tax
Financial situation
A house is an asset that typically will ____ value over time.
Stay the same
Decrease in
Depreciate in
Increase in
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.
Amenities
Mortgages
Tax brackets
Security deposits
You should buy a home, even if you cannot afford it just yet. Renting is a waste of money.
True
False
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 ____.
Buy a house
Lease a house
Rent a house
Sell a house
The only time it's okay to borrow money if you can't pay 100% in cash is . . .
Getting a car lease
Buying a home (mortgage)
For home improvement projects
Renting a home
A leasing contract...
Can be terminated at any time without any fees or penalties
Is a legal document that allows the renter (tenant) to use the property for a period of time
Is something a roommate owes taxes on
Should be signed immediately, even before reading it
No matter what path you choose to take after high school, the money principles stay the same. What are they?
Only use a debit card for purchases, rent-to-own loans are king, and don't open a savings account.
Live on more than you make and debt dominates all.
Invest before anything else and budget if you have time
Save, budget, stay out of debt, live on less than you make, and be generous
If you look at long-term costs, ____ is usually the better deal.
Homeownership
Renting
Leasing
Maintaining
It's important to read your leasing contract, because once you sign it, is enforceable by law.
True
False
A fixed-rate mortgage has a ____ mortgage rate for ____ years.
Set; a set number of
High; a large amount of
12%; 30
Good; 15
When someone spends so much of their income on the costs of homeownership that they struggle to reach their other financial goals, they are ____.
Wise homeowners
House poor
Wealthy
Rent poor
What information should a lease contain?
The names and numbers of the closest shopping malls
Property address, rental term, security deposit terms, and pet fees
Acknowledgement clause, your name, and the local restaurants available
An agreement that your rent will only be paid on a credit card
Which type of loan is not secured by a government entity and usually has the best rate and term?
FHA loan
VA loan
Family loan
Conventional loan
What is your mortgage principal?
The largest amount of money you are legally allowed to borrow
The down payment needed to get a mortgage
The amount borrowed (that must be repaid) to purchase a home
The first payment you make on your new home
To make living with a roommate more peaceful while you're saving money..
Communicate, be respectful, and be considerate
Avoid talking to them in order to avoid conflict
Require your roommate to pay a larger rent check than you do
Assume that your best friend will make a great roommate
After you hire a real estate agent, the next step in the process is to ____
Close on your new home
Get a home inspection
Start looking at homes within your budget
Make an offer on a home
It is impossible to get a mortgage without a credit score.
True
False
Equity is the difference between what you still owe on your home and what it is worth.
True
False
Learning about the costs of living before you need to cover them and creating good money habits early are both examples of ____.
Taking personal responsibility
Poor money management
being a consumer
Wealth building
What type of interest rate in locked in and won't change for the life of the loan?
15-year
Fixed rate
Equity
Adjustable rate
Making periodic payments to a landlord for the use of their property is called ____.
Down payment
Buying
Renting or leasing
Security deposit
