Chapter 9: The Finances of Housing

Home Equity Loan

A(n) ____________________ is an option for homeowners to take a second mortgage when extra cash is needed for other expenses.

Amortization

Another way to save money on a mortgage is through ____________________. Reduction of a loan balance through payments made over a period of time.

Complex

Apartments may be located in a house , a high-rise building, or a(n) ____________________. A building or group of buildings with housing units.

Foreclose

Be sure you can afford the payments for your loan or the lender can ____________________ and you will be left without a place to live. Take possession of the property

Deed

Closing costs include legal fees, such as fees for recording the ____________________, appraisal fee, and title insurance. Official document transferring ownership from seller to buyer

Appraisal

Closing costs include legal fees, such as fees for recording the deed, ____________________ fee, and title insurance. Estimate of the current value of property

Title Insurance

Closing costs include legal fees, such as fees for recording the deed, appraisal fee, and ____________________.

Refinance

Home owners will sometimes ____________________ their mortgage to reduce monthly payments when interest rates fall. To obtain a new mortgage to replace an existing one.

Mortgage

If you choose to buy, you will need to obtain a(n) ____________________.

Tenant

If you choose to rent, you will sign a lease, which will protect rights of both ____________________ and landlord.

Landlord

If you choose to rent, you will sign a lease, which will protect rights of both tenant and ____________________.

Lease

If you choose to rent, you will sign a(n) ____________________, which will protect rights of both tenant and landlord.

Equity

Making extra payments toward the principal can increase your ____________________ while decreasing your interest charges. Value of a home minus the amount still owed on the money borrowed to purchase it.

Mobility

Many young adults choose to rent for the increased ____________________ and decreased responsibilities. Ability to move easily from place to place

Closing

Part of the ____________________ process is setting up an escort account which will be used to pay taxes and private mortgage insurance (PMI). Meeting of a seller, a buyer, and a lender of funds to complete a transaction.

Escort Account

Part of the closing process is setting up a(n) ____________________ which will be used to pay taxes and private mortgage insurance (PMI).

Private Mortgage Insurance (PMI)

Part of the closing process is setting up an escort account which will be used to pay taxes and ____________________. A special policy that protects a lender in case a buyer cannot make payments at all or on time.

Sublet

Some apartments will allow you to ____________________ if you decide to move before your lease has expired. To have a person other than the original tenant take over the rental unit and payments for the remaining term of the lease.

Dwelling

Though most people think of a single-family or multi-unit ____________________, a house can also be a condominium, cooperative housing, a prefabricated home, or a mobile home. Shelter

Considerations

Two ____________________ when deciding whether to rent or buy are your lifestyle and financial situation. Matters for thought

Lifestyle

Two consideration when deciding whether to rent or buy are your ____________________ and financial situation.

Adjustable-Rate Mortgage

When applying for a loan to buy a house, compare the terms of a fixed-rate mortgage and a(n) ____________________ to determine which best fits your situation.

Fixed-Rate Mortgage

When applying for a loan to buy a house, compare the terms of a(n) ____________________ and an adjustable-rate mortgage to determine which best fits your situation.

Security Deposit

When considering the cost of an apartment, include the ____________________ and renter insurance.

Renter Insurance

When considering the cost of an apartment, include the security deposit and ____________________.

Points

You may be able to get lower interest rate by buying ____________________ and offering a higher down payment. Extra charges that must be paid by a buyer to a lender in order to get a lower interest rate.