WorksheetsLesson 10 Day 1 Renting vs Owning
Total questions: 23
Worksheet time: 12mins
In the context of housing, what does a mortgage most closely represent?
A monthly fee paid to a landlord for use of an apartment
A long-term loan used to purchase a home that is repaid over time
A refundable deposit to cover possible damages during a lease
A tax credit received for owning property
Which statement best describes equity when you own a home?
The amount of rent you owe at the end of a lease
The portion of the home's value you truly own after subtracting what you still owe on the mortgage
A type of insurance required by landlords
The security deposit held by the property manager
A lease agreement is primarily used for which housing situation?
Renting a property from a landlord
Buying a home with a mortgage
Paying property taxes on a house you own
Refinancing an existing home loan
According to the passage on disadvantages of owning a home, which responsibility falls solely on the homeowner?
Paying the first month’s rent and security deposit
Covering all maintenance and repairs, from yard upkeep to roof replacement
Submitting an application fee to the landlord
Renewing the lease agreement each year
Which option contrasts a typical upfront cost of renting with a typical responsibility of owning, based on the material?
Security deposit vs. submitting a rental application
First month’s rent vs. paying property taxes
Application fee vs. paying for home maintenance and repairs yourself
Down payment vs. renewing a lease annually
Which statement best summarizes a disadvantage of homeownership highlighted in the passage?
Homeowners have fewer responsibilities because landlords handle repairs.
Keeping a home in good shape can take significant time and money for the owner.
Homeownership eliminates all housing costs after move-in.
Renters must pay for roof replacements in most leases.
Which statement best describes an advantage of renting mentioned in the lesson?
Renting lets you move locations with ease and avoid most maintenance duties.
Renting guarantees lower monthly costs than owning a home in every city.
Renting allows unlimited remodeling without asking permission.
Renting ensures your rent will never increase.
According to the text, who is typically responsible for repairs and maintenance when you rent?
The tenant, using a maintenance fund set aside by the landlord
The landlord, who is generally responsible for repairs and maintenance
A city inspector assigned to the building
A homeowners association that manages renter units
Which items are listed as disadvantages of renting? Select all that apply.
You are paying someone else’s mortgage, so you’re not building equity.
You may face limits on changes you can make to the living space.
Your rent can never increase once you sign a lease.
You might have to deal with difficult landlords.
What does the phrase “paying someone else’s mortgage” imply about renting?
Renters gradually build equity in the property they live in.
Renters’ payments help the property owner, not the renter, build equity.
Renters avoid all housing costs by splitting them with the owner.
Renters must pay a mortgage in addition to rent each month.
Which statement reflects a loss of personal autonomy when renting?
You can customize the home without limits, including structural changes.
You are limited in the changes you can make in your living space.
You can sublet the apartment to anyone at any time.
You can lock in the same rent for life with your first lease.
Using the 30% rule, what is the maximum recommended monthly housing cost for someone earning $3,600 before taxes each month?
$900
$1,080
$1,200
$1,500
The 30% rule suggests your housing costs should not exceed what portion of your monthly income before taxes?
One-fifth (20%)
Just under half (45%)
About one-third (30%)
Two-thirds (66%)
A student earns $4,000 a month before taxes. According to the 30% rule, which target best matches the guidance in the example?
Limit housing costs to around $800 per month.
Limit housing costs to around $1,200 per month.
Limit housing costs to around $1,800 per month.
Limit housing costs to around $2,400 per month.
Which of the following is an advantage of renting related to maintenance?
You personally cover major repairs to build home equity.
You schedule repairs, but the landlord typically pays and handles them.
You must purchase homeowner’s insurance to cover all maintenance.
You are required to perform all routine maintenance tasks yourself.
Which potential challenge of renting is highlighted in the material?
Guaranteed annual rent decreases after the first year
A fixed mortgage payment that never changes
The possibility of rent increases and dealing with difficult landlords
Unlimited freedom to renovate without permission
According to the lesson, which items should be included when calculating total housing costs for budgeting purposes? Select all that apply.
Rent or mortgage payments
Homeowners or renters insurance
Property taxes
Utility bills
Maintenance or repair costs
A student plans to follow the 30% rule and has a monthly housing budget of $1,200. What renting strategy best fits the guidance in this lesson?
Choose an apartment priced exactly at $1,200 so every dollar of the budget is used
Search for a place costing a little less than $1,200 to leave room for insurance, utilities, and other housing expenses
Pick a unit above $1,200 because utilities will be cheaper in a newer building
Ignore utility and maintenance costs because the 30% rule only applies to rent
Which statement best describes the purpose of the 30% rule discussed in the material?
It limits total income to 30% of rent and utilities combined
It suggests keeping all housing expenses, not just rent, around 30% of your monthly income
It requires landlords to set rent at 30% below market value
It says only mortgage payments should count toward the 30% threshold
A landlord applies the 3x rent rule. If monthly rent is $1,000, what gross monthly income would the landlord likely want to see?
$1,000
$2,000
$3,000
$30,000
Why do landlords use the 3x rent rule, based on the lesson? Select all that apply.
To ensure tenants can cover rent and still afford other living expenses
To make sure tenants buy renters insurance from a specific company
To check that tenants’ pre-tax income is at least three times the rent
To lower property taxes for the building
Which of the following is NOT listed as a typical housing cost to include in a budget?
Homeowners or renters insurance
Property taxes
Utility bills
Streaming service subscriptions
Which pair correctly matches the guideline with what it checks?
30% rule — credit score must be 30% higher than average
3x rent rule — monthly income should be at least three times the rent before taxes
3x rent rule — rent must be three times the property taxes
30% rule — only rent counts toward the budget
