Personal Finance Courses: Housing

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1.
When you make a mortgage payment, all of it goes toward interest.
Choose wisely. There is only one correct answer.
False. It's a mix of both, though the proportion that is interest declines over the life of the loan.
2.
Tenants renting apartments are liable for _______.
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None of the above. Tenants do not pay any of these, though their landlords do pass some of the costs onto them indirectly through their rent.
3.
Having a cosigner when you sign a lease on an apartment can be helpful if _______.
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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.
4.
An amount paid to secure a price agreement is called _______.
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Earnest money. To secure the agreed price, the buyer is expected to give earnest money to the seller to secure the agreement.
5.
Mortgage insurance protects your home and its contents.
Choose wisely. There is only one correct answer.
False. Homeowner insurance is what protects your home and its contents. Mortgage insurance protects the lender who loaned you the money to buy the home in case you default on your payments.