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WorksheetsChapter 7 Vocabulary
Total questions: 18
Worksheet time: 18mins
What is a lease?
A document outlining a home’s sale price
A legal contract between a landlord and tenant outlining rental terms
A type of home loan
A security deposit agreement
What is a security deposit?
A refundable amount paid to cover damages beyond normal wear and tear
A monthly rent payment
A fee for moving into an apartment
A non-refundable landlord fee
Who is a landlord?
A person who rents an apartment from someone else
The owner of a rental property who leases it to tenants
A real estate agent helping people buy houses
A legal official handling eviction cases
What is a tenant?
A person who owns a rental property
A person who rents an apartment or house from a landlord
A person who provides mortgage loans
A person who manages rental properties
What is an eviction?
The process of finding a new tenant
A legal process of removing a tenant from a rental unit
A security deposit refund
A lease renewal
What is a co-signer?
A person who manages rental properties
A person who signs a lease and is responsible if the tenant fails to pay
A landlord’s legal representative
A tenant’s roommate
What is a pet deposit?
A non-refundable payment for pet food
A fee paid by tenants with pets to cover potential damage
A monthly rent increase for tenants with pets
A tax on pet ownership in rental properties
What is a mortgage?
A contract between a landlord and tenant
A loan used to purchase a home, typically repaid over time
A fee for renting an apartment
A home insurance policy
What is a down payment?
The total cost of a home purchase
An upfront payment made by the buyer, usually a percentage of the home’s price
The monthly mortgage payment
A tax on home purchases
What are closing costs?
Additional expenses paid at the time of home purchase, including loan fees and title insurance
The total cost of a home purchase
The principal loan amount
The interest rate on a mortgage
What is equity in homeownership?
The full cost of a mortgage
The difference between a home's market value and the amount owed on the mortgage
The interest rate on a home loan
A type of home insurance
What is escrow?
A fee paid to a real estate agent
Taxes and insurance added to your mortgage payment
A type of home loan
The down payment on a house
What is a fixed-rate mortgage?
A mortgage where the interest rate stays the same throughout the term
A loan where the interest rate changes frequently
A short-term loan for homebuyers
A loan that only covers the down payment
What is an adjustable-rate mortgage (ARM)?
A loan with an interest rate that stays the same
A mortgage with an interest rate that may change over time based on market conditions
A home loan with no interest
A short-term rental agreement
What is the principal in a loan?
The original amount of money borrowed before interest is added
The monthly mortgage payment
The closing costs on a home purchase
The amount of interest paid over time
What is interest in terms of a loan?
The total loan amount
A refund from a lender
The cost of borrowing money
The amount of a home’s down payment
What is the front-end ratio?
Total monthly expenses divided by monthly gross income and lenders typically prefer this ratio to be 28% or lower.
Total monthly expenses divided by monthly gross income and lenders typically prefer this ratio to be 36% or lower.
Monthly housing expenses divided by monthly gross income and lenders typically prefer this ratio to be 36% or lower.
Monthly housing expenses divided by monthly gross income and lenders typically prefer this ratio to be 28% or lower.
What is the back-end ratio?
Total monthly expenses divided by monthly gross income and lenders typically prefer this ratio to be 28% or lower.
Total monthly expenses divided by monthly gross income and lenders typically prefer this ratio to be 36% or lower.
Monthly housing expenses divided by monthly gross income and lenders typically prefer this ratio to be 36% or lower.
Monthly housing expenses divided by monthly gross income and lenders typically prefer this ratio to be 28% or lower.
