Renting Versus Buying Does renting or buying have
Renting Versus Buying
Does renting or buying have less responsibility for maintenance and upkeep?
Renting
Apartments, Houses, or Condominiums? Owned by individuals and common parts of the property, such as the grounds and building structure, are owned jointly by the unit owners?
Condominiums
True or False When making decisions about a place to live, you should determine how much you can spend and stay within your budget.
True
What does the term amenities refer to?
Swimming pools, exercise rooms, etc
What should be a lease before you sign?
Amount of rent and how it must be paid
What is the part of the purchase price paid in cash up front referred to as?
Down Payment
Where should the rights and responsibilities of the tenant and landlord be spelled out?
The lease
What should be purchased by anyone who rents a place to live?
Renter’s Insurance
True/False Everyone wants to own a home.
False
What is known as the money paid to provide some protection for the landlord for damage you made to the apartment, cleanings fees, or other costs?
Security Deposit
If you do not want to do yard work, what should you consider buying?
A condominium
True/False Renting an apartment offers a tax advantage over homeownership.
False
True/False Buying a house offers a tax advantage over renting because homeowners can deduct the interest they pay on a mortgage from their personal income taxes.
True
True/False If you are unsure of your plans after college, you should buy a house.
False
True/False If you are unsure of your plans after college, you should rent an apartment, either on a month-tomonth lease or with a lease that she cancel if relocating.
True
True/False Renting an apartment is a greater financial commitment than owning a house.
False
True/False Owning a house is a greater financial commitment than renting an apartment.
True
What should you do with the inspection form given to you by the landlord?
Complete the form, make a note of needed repairs, sign the form, make a copy for yourself, and return it to the landlord
Who cancel a month-tomonth lease?
Tenant or Landlord
What are some of the costs associated with buying a house?
Down payments, points, and homeowner association fees
What is known as the deposit you pay when making an offer to show you are serious about buying the house?
Earnest Money
True/False When negotiating an offer on a house, your top priority is making an offer that you know the seller will accept without further negotiations.
False
True/False When negotiating an offer on a house, your top priority is making an offer that includes the contingencies and details you want considered.
True
What type of mortgage should you considered?
Fixed rate mortgage
After working on a budget and you are ready to buy a house, how do you know how much house you can afford?
Which is one of the disadvantages of renting?
Finding an apartment that will allow pets
What are some of the closing costs the buyer must pay?
Title Insurance Attorney Fees Survey Costs Points Inspection Fees
What are homeowners responsible for paying?
Utilities Property Insurance Maintenance
True/False Buying a house is the most expensive purchase most people make.
True
What is a good piece of advice for anyone considering buying a house?
Buy a house you can afford
Who pays the utilities when renting an apartment?
Either by tenant or landlord
What percentage of your income is considered good when purchasing a home? (house expense ratio)
28%
How can you reduce your monthly house payment?
Make a larger down payment
If the down payment on your house is less than 20% of the house price, you may be required to pay ____ each month with your mortgage payment.
Private mortgage insurance
Get pre-approved for a mortgage before looking for a place to buy
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