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
