Chapter 16

What is private mortgage insurance PMI?

Special policy that protects the lender in case the buyer cannot make payments

What is not an advantage of owning a condominium?

Tax benefits

The meeting of the buyer, seller, and lender of funds, or the representatives of each party, to complete a real estate transaction?

closing

The official document transferring ownership of a home from seller to buyer?

deed

The value of a home less the amount still owed on the loan?

equity

A home inspector is responsible for?

evaluating the house and the land

A loan based on the difference between the current market value of a home and the amount still owed on the mortgage?

home equity loan

Renting is often a wise choice for someone who wants?

mobility

the ability to move easily from place to place

mobility

A long-term loan extended to someone who buys property

mortgage

A lender may ask a buyer to deposit money in an escrow account for paying?

property taxes

A type of insurance that covers the loss of a tenants property as a result of damage or theft ?

renters insurance

What is a lease?

A legal document that describes the conditions of a rental agreement

Title insurance protects the buyer is problems are found with the property's tax. True or false?

False

To sublet is to let a roommate move in with you and share the cost of rent. True or false ?

False

What should homeowners do when preparing to sell their home?

Make needed repairs

Are tax benefits an advantage is renting a house?

No

What might a buyer do to get a low interest rate?

Pay points

The process of obtaining a new mortgage to replace an exhausting one?

Refinance

What are zoning laws?

Regulations that limit how property in a given area can be used

A disadvantage of renting is?

Restricted activities

Who usually pays a real estate agent a commission?

Salesperson. Person selling the home

An amount of money paid to a landlord by a tenant to cover damages caused by the tenant ?

Security deposit

A bank pays the full amount of a mortgage to?

The seller

An example of an attached home?

Townhouse

A disadvantage to owning a condominium is that it is hard to sell. True or false?

True

When deciding how to offer for a home, what do you not need to consider?

Whether the interior walls need to be painted

Do members own their condominiums?

Yes

Do most adjustable rate loans have a rate cap?

Yes

The process of reducing the balance of a loan every time a payment is made?

amortization