Chapter 14: Real Estate and Homeownership Quiz

1 point(s)

Which of the following is NOT typically a responsibility of a renter?

Capital appreciation

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Dividends

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Diversification

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Guaranteed returns

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1 point(s)

What is one key benefit of owning a home compared to renting?

Lower upfront costs

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Flexibility to move

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No maintenance responsibilities

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Potential for property value appreciation

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1 point(s)

What is a primary advantage of a fixed-rate mortgage over an adjustable-rate mortgage (ARM)?

Lower initial interest rates

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Predictable monthly payments

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Shorter loan term

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No down payment required

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1 point(s)

Renting a home typically offers more flexibility to move than owning a home.

True

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False

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1 point(s)

Homeowners are responsible for property taxes and homeowner’s insurance.

True

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False

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1 point(s)

Arrange these homeownership costs from most to least predictable:

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1 point(s)

Rank these reasons for renting a home from most to least common: Flexibility to move / Lower upfront costs / No maintenance responsibilities

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1 point(s)

What is one concept you found most interesting in this chapter and why?

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3 point(s)

Definition

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Offers predictable monthly payments with a constant interest rate
Has interest rates that may change periodically, affecting monthly payments
Allows the borrower to pay only the interest for a set period, followed by higher payments

Fixed-Rate Mortgage

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Adjustable-Rate Mortgage (ARM)

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Interest-Only Mortgage

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3 point(s)

Definition

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Duration of the rental agreement
Funds held by the landlord as insurance against damage or unpaid rent
Legal process by which a tenant is removed for violating lease terms

Lease Term

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Security Deposit

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Eviction

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Chapter 14: Real Estate and Homeownership Quiz