ch 11 pf

You should rent until you are able to _______.

buy a home the right way

It is impossible to get a mortgage without a credit score.

false

What type of interest rate is locked in and won't change for the life of the loan?

fixed rate

a leasing contract

legal document that allows the renter to use property for a period of time

When you're ready to buy a house, the best option is a _____________.

15 year fixed rate mortgage

Your rent payment should total no more than ___% of your take-home pay.

25

To make living with a roommate more peaceful while you're saving money . . .

communicate, be respectful, and be considerate

Living on campus at college will help you ______ living on your own, while living off campus will require you to ___________.

ease into, pay for rent, utilities, and groceries

If you look at long-term costs, _____ is usually the better deal.

homeownership

When someone spends so much of their income on the costs of homeownership that they struggle to reach their other financial goals, they are _______.

house poor

What information should a lease contain?

property address, rental term, security deposit terms, and pet fees

Making periodic payments to a landlord for the use of their property is called ___________.

renting or leasing

A fixed-rate mortgage has a ___________ mortgage rate for _________ years.

set, a number of

Equity is the difference between what you still owe on your home and what it is worth.

true

It's important to read your leasing contract, because once you sign it, is enforceable by law.

true

Renting is a great option for many people.

true

Buying a house while _____ can put your ________ at risk.

in debt, home purchase

A house is an asset that typically will ________ value over time.

increase in

After you hire a real estate agent, the next step in the process is to _____________.

start looking at home within your budget

Learning about the costs of living before you need to cover them and creating good money habits early are both examples of _______________.

taking personal responsibility

As you shop around and compare rent prices, remember that paying extra for ________ is not worth it if it keeps you from reaching your financial goals.

amenities

What does cost of living refer to?

average cost of the basic goods and services needed to maintain a certain standard of living

You need to be completely out of debt, have a fully funded emergency fund, and have saved enough cash for a down payment before you _______________.

buy a house

The only time it's okay to borrow money if you can't pay 100% in cash is . . .

buying a home (mortgage)

Which type of loan is not secured by a government entity and usually has the best rate and term?

conventional law

You should buy a home, even if you cannot afford it just yet. Renting is a waste of money.

false

Your decision to rent or buy depends on your _________.

financial situation

It's best to develop good _________ now instead of waiting until you're on your own to figure it all out.

money habits

No matter what path you choose to take after high school, the money principles stay the same. What are they?

save, budget, stay out of debt, live on less than you make, and be generous

What is your mortgage principle?

the amount borrowed (must be repaid) to purchase a home