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Housing
Ch 18 Personal Finance
| Term | Definition |
|---|---|
| Amount of money a renter pays a landlord to insure against financial losses if the renter damages the dwelling or fails to pay rent | Security Deposit |
| A contract that specifies the conditions, terms, and rent for the use of an asset | Lease |
| The deposit made when a buyer signs a purchase agreement to show the offer is serious. | Earnest money |
| An agreement that calls for certain requirements to be met before the contract is binding. | Contingency clause |
| A home loan | Mortgage |
| The process by which loan payments are applied to the principal, or amount borrowed, as well as to the interest on a loan according to a set schedule | Amortization |
| Fees that must be paid before the sale of a home can be made final | Closing costs |
| A map of the property drawn by a surveyor to show size, boundaries, and characteristics of a property | Property Survey |
| A legal document that proves ownership of a particular piece of property | Title |
| A summary of the public record or history of the ownership of a particular piece of property | Abstract of title |
| An account used to hold money until it can be paid to the party that is owed | Escrow account |
| Insurance that protects the lender from loss if the borrower defaults on the loan | Private mortgage insurance |
| A mortgage that guarantees a fixed or unchanging interest rate for the life of the loan | Fixed rate mortgage |
| A mortgage in which the interest rate is adjusted up or down periodically | Adjustable rate mortgage (ARM) |
| A mortgage that allows the buyer to pay low monthly payments at first and higher payments in the future | Graduated payment mortgage |
| A mortgage in which monthly payments are applied only to the interest, not the principal, for a certain number of years | Interest only mortgage |
| A mortgage made by leaders who charge higher than prime rates to borrowers who have poor or no credit ratings | Subprime mortgage |
| A loan in which the Federal Housing Administration insures the lender against the borrowers' possible default or failure to pay | FHA-insured loan |
| A long-term, fixed rate mortgage insured by the Veterans Administration for veterans of the U.S. Armed Forces | VA-guaranteed loan |
| A loan in which homeowners borrow the money they paid on a mortgage | Home equity loan |
| The Bureau of Labor Statistics provides cost of living figures for different cities and parts of the country (T/F) | True |
| All neighborhoods are pretty much the same (T/F) | False |
| Neighborhood and schools near a home are only important to families with children (T/F) | False |
| Condominium owners have the same tax and equity benefits as house owners (T/F) | False |
| Cooperative apartments are owned by a corporation, and buyers receive shares in the corporation along with the right to occupy a specific unit (T/F) | True |
| Custom-built houses are usually the least expensive type of single-family housing (T/F) | False |
| Manufactured homes generally cost more than other types of housing with comparable living space and facilities (T/F) | False |
| Under no circumstances should people spend more than 2 1/2 times their gross annual income to buy a home (T/F) | True |
| Factors to consider when choosing a home are the same whether you rent or buy (T/F) | False |
| Renters do NOT need to worry about property values (T/F) | True |
| Once you sign a lease, you give up your rights as a tenant (T/F) | False |
| It is a good idea to hire a reliable home inspection service to evaluate any house you are seriously interested in buying (T/F) | True |
| Before spending any money, it is a good idea to create a floor plan for each room you plan to furnish (T/F) | True |
| A floor plan can help you visualize the space you have available for decorating (T/F) | True |
| The price of a given piece of furniture will be pretty much the same regardless of where you buy it (T/F) | False |
| Buying brand name furniture in a well-known department is the least expensive way to furnish a home (T/F) | False |
| Hard floors are colder, noisier, and less comfortable than other flooring (T/F) | True |
| It pays to buy the best quality furniture you can afford regardless of how you intend to use it (T/F) | False |
| It is important to read labels when buying upholstered furniture because much of the construction is hidden (T/F) | True |
| The quality of rugs and carpets depends largely on the fiber content and the density of the pile (T/F) | True |
| Sources of information on places you might like to live include___ | All of the above |
| The main difference between rental, condominium, and cooperative apartments is ____ | Ownership |
| A home designed by an architect for the person or family wanting to build is called a ____ | Custom-built home |
| The amount you can afford to spend on housing depends on all of the following EXCEPT ____ | The amount of money your friends spend for housing |
| Do NOT spend more than guidelines suggest for housing if ____ | Nonhousing obligations and debts are high |
| Advantages of renting a home rather than buying include all of the following EXCEPT _____ | You build up equity or ownership |
| Most apartment leases give renters the right to ____ | Occupy a designated apartment |
| Persons you may need to call on for service and advice when buying a home include all of the following EXCEPT ____ | A certified public accountant |
| Factors to consider when shopping for a mortgage include all EXCEPT ____ | Homeowner's insurance coverage |
| A fixed rate mortgage is a loan in which ____ | Monthly payments and the interest rate remain the same throughout the term of the loan |
| Four points on a $150,000 mortgage comes to ____ | $6,000 |
| To get better service and lower rates, plan to move ____ | Between mid-October and mid-April |
| Important factors to consider when furnishing and decorating a home include all EXCEPT ____ | The type of furniture your parents own |
| Arranging furniture patterns on a floor plan can help you ____ | All of the above |
| Factors to consider when buying furniture include ____ | All of the above |
| All of the following describe aggressive rent-to-own plans for furniture and appliances EXCEPT ____ | Involve applying for credit, signing a lease agreement, and paying a security deposit and down payment |
| Location of housing is important when you are buying a home | False |
Created by:
SavvyBean122
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