WorksheetsLesson 10 Quiz
Total questions: 23
Worksheet time: 12mins
When you buy a home, your monthly payments help you build:
Rent
Equity
Appreciation
Insurance
Renting is best for people who want:
Long-term commitment
Full control over remodeling
Flexibility and fewer responsibilities
To pay property taxes
Which of the following is an upfront cost of buying a home?
Property taxes
Closing costs
Monthly utilities
Rent
A downside to renting is:
You pay fewer upfront costs
You are responsible for major repairs
You are paying someone else’s mortgage
You can move easily
A benefit of owning a home is:
No responsibility for repairs
Fixed rent
Ability to renovate however you want
No upfront costs
Renting usually requires which upfront payment?
Down payment
Security deposit
Appraisal fee
Mortgage fee
The 30% rule states that:
Rent should be 3 times your income
Housing costs shouldn’t exceed 30% of monthly income
You must save 30% for a down payment
Your income must triple your rent
The 3x rent rule means:
Your rent should be three times your expenses
You must have a 3-year lease
Your income should be at least 3 times the rent
Rent increases happen every 3 months
A disadvantage of homeownership is:
No flexibility
Lower upfront costs
No equity
No taxes
A fixed-term lease usually lasts:
6 months
1 year
3 years
Until the landlord ends it
A month-to-month lease requires:
A 60-day notice
No notice
About a 30-day notice
A full-year commitment
Month-to-month leases are usually:
Cheaper
More expensive
Free after the first month
Only for homeowners
Which insurance protects your belongings from theft or fire?
Homeowner’s insurance
Liability insurance
Renters insurance
Mortgage insurance
A security deposit is used to cover:
Late fees
Damages to the property
Rent increases
Utilities
If you pay your rent late, you may be charged a:
Deposit fee
Late fee
Utility fee
Lease termination fee
Lease termination rules explain:
How rent increases work
Who can live in the unit
How the lease can be ended
What utilities are included
Ending a lease early may require paying a:
Mortgage fee
Deposit return
Lease termination fee
Utility balance
A typical fixed-rate mortgage term is:
5 years
10 years
15 or 30 years
45 years
A 30-year fixed mortgage has payments that:
Change every year
Stay the same
Increase monthly
Depend on the landlord
A 15-year mortgage usually has:
Lower monthly payments
A higher interest rate
Higher monthly payments & a shorter payoff
No interest
An ARM mortgage has an interest rate that:
Never changes
Changes every year after the fixed period
Changes only at the start
Increases automatically every month
In a 5/1 ARM, the “5” stands for:
5% interest
5-year fixed rate
5 days of interest changes
5 payments per month
In a 5/1 ARM, the “1” means the rate changes:
Once a year
Once a month
Every 6 months
Every 5 years
