Personal Finance Courses: Housing

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1.
Having a cosigner when you sign a lease on an apartment can be helpful if _______.
Choose wisely. There is only one correct answer.
You have bad credit or not enough credit history. Having a cosigner might make a landlord more willing to rent to you than if you did not.
2.
Renters must pay condominium fees.
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False. Owners of condominium units must pay those fees, though they may factor them into any rent they charge to renters.
3.
Homes always keep increasing in value.
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False. Not always. Over time, the trend is toward growth, but sometimes home values do drop, even for several years in a row.
4.
Why does having a cosigner on an apartment lease make a landlord more willing to rent to you than if you didn't?
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The cosigner is liable for the rent if you default on it. The cosigner is like an insurance policy on the rent.
5.
You must pay private mortgage insurance if your down payment on a home is less than _______.
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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.