Personal Finance Courses: Housing

Test your knowledge

Choose wisely. There is only one correct answer to each question.

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1.
Homes always keep increasing in value.
Choose wisely. There is only one correct answer.
False. Not always. Over time, the trend is toward growth, but sometimes home values do drop, even for several years in a row.
2.
It is possible to negotiate the rent on an apartment.
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True. Though not all landlords do, some are open to negotiating if it will help them rent a unit.
3.
An advantage of _______ is that you can build equity.
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Owning a home. When you own a home, the money that you paid on it will be your equity.
4.
You must pay private mortgage insurance if your down payment on a home is less than _______.
Choose wisely. There is only one correct answer.
20%. If your down payment is less than 20% of the price of the home, you will have to pay for mortgage insurance. This insurance protects the lender (but not you) in case you fail to keep making payments on the home.
5.
Whom does title insurance protect?
Choose wisely. There is only one correct answer.
You and your lender. Title insurance protects you and your lender in case you discover afterward that someone else could lay claim to the house.