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9th -
12thgrade
Chapter 11: Housing and Real Estate (Ramsey Classroom)
30 questions
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- 1. Multiple Choice
To make living with a roommate more peaceful while you're saving money...
Communicate, be respectful, and be considerate
Require your roommate to pay a larger rent check than you do
Avoid talking to them in order to avoid conflict
Assume that your best friend will make a great roommate
- 2. Multiple Choice
Your decision to rent or buy depends on your _________.
Financial situation
Income tax
Friends' opinions
Feelings towards renting or buying
- 3. Multiple Choice
It is impossible to get a mortgage without a credit score.
True
False
- 4. Multiple Choice
Renting is a great option for many people.
True
False
- 5. Multiple Choice
When someone spends so much of their income on the costs of homeownership that they struggle to reach their other financial goals, they are _______.
Rent poor
Wise homeowners
House poor
Wealthy
- 6. Multiple Choice
After you hire a real estate agent, the next step in the process is to _____________.
Make an offer on a home
Start looking at homes within your budget
Get a home inspection
Close on your new home
- 7. Multiple Choice
The only time it's okay to borrow money if you can't pay 100% in cash is . . .
Getting a car lease
For home improvement projects
Buying a home (mortgage)
Renting a home
- 8. Multiple Choice
A leasing contract...
Can be terminated at any time without any fees or penalties
Is a legal document that allows the renter (tenant) to use the property for a period of time
Is something a roommate owes taxes on when they move in with the current renter
Should be signed immediately, even before reading it
- 9. Multiple Choice
It's important to read your leasing contract, because once you sign it, is enforceable by law.
True
False
- 10. Multiple Choice
What does cost of living refer to?
How much of your monthly income is budgeted specifically for your rent or mortgage
The average cost of the basic goods and services needed to maintain a certain standard of living
The level of wealth, comfort, material goods and necessities available to a group of people
How wealthy or poor you are at the time of purchasing your first home
- 11. Multiple Choice
Equity is the difference between what you still owe on your home and what it is worth.
True
False
- 12. Multiple Choice
If you look at long-term costs, _____ is usually the better deal.
Maintaining
Leasing
Renting
Homeownership
- 13. Multiple Choice
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
Poor money management
Being a consumer
Wealth building
- 14. Multiple Choice
Which type of loan is not secured by a government entity and usually has the best rate and term?
Conventional loan
Family loan
VA loan
FHA loan
- 15. Multiple Choice
Buying a house while _____ can put your ________ at risk.
In debt; home purchase
Getting pre-approved; life
Debt-free; renter's insurance
On a budget; social life
- 16. Multiple Choice
Making periodic payments to a landlord for the use of their property is called ___________.
Security deposit
Renting or leasing
Buying
Down payment
- 17. Multiple Choice
What is your mortgage principal?
The largest amount of money you are legally allowed to borrow
The down payment needed to get a mortgage
The amount borrowed (that must be repaid) to purchase a home
The first payment you make on your new home
- 18. Multiple Choice
What type of interest rate is locked in and won't change for the life of the loan?
Adjustable rate
Equity
Fixed-rate
15-year
- 19. Multiple Choice
What information should a lease contain?
The names and numbers of the closest shopping malls
Property address, rental term, security deposit terms, and pet fees
Acknowledgement clause, your name, and the local restaurants available
An agreement that your rent will only be paid on a credit card
- 20. Multiple Choice
Living on campus at college will help you ______ living on your own, while living off campus will require you to ___________.
Dive into; live with your parents
Get used to; cut half of your college courses
Ease into; pay for rent, utilities, and groceries
Enjoy; find roommates
- 21. Multiple Choice
When you're ready to buy a house, the best option is a _____________.
30-year fixed rate mortgage
30-year equity loan
15-year fixed-rate conventional mortgage
20-year VA loan
- 22. Multiple Choice
You should rent until you are able to _______.
Buy amenities
Invest in stocks
Become a landlord someday
Buy a home the right way
- 23. Multiple Choice
Your rent payment should total no more than ___% of your take-home pay.
25
75
15
50
- 24. Multiple Choice
You should buy a home, even if you cannot afford it just yet. Renting is a waste of money.
True
False
- 25. Multiple Choice
It's best to develop good _________ now instead of waiting until you're on your own to figure it all out.
Friendships
Real estate investments
Diet and exercise plans
Money habits
- 26. Multiple Choice
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 _______________.
Sell a house
Rent a house
Lease a house
Buy a house
- 27. Multiple Choice
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.
Security deposits
Tax brackets
Mortgages
Amenities
- 28. Multiple Choice
A fixed-rate mortgage has a ___________ mortgage rate for _________ years.
Good; 15
12%; 30
High; a large amount of
Set; a set number of
- 29. Multiple Choice
A house is an asset that typically will ________ value over time.
Increase in
Depreciate in
Decrease in
Stay the same
- 30. Multiple Choice
No matter what path you choose to take after high school, the money principles stay the same. What are they?
Live on more than you make and debt dominates all.
Invest before anything else and budget if you have time.
Save, budget, stay out of debt, live on less than you make, and be generous.
Only use a debit card for purchases, rent-to-own loans are king, and don't open a savings account.
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