Personal Finance Courses: Housing

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1.
As a rule of thumb, a mortgage payment shouldn't exceed how much of your monthly gross income?
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30%. The rule of thumb for monthly payments is that they shouldn't exceed 30 percent of your monthly gross income.
2.
Mortgage insurance protects your home and its contents.
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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.
3.
A down payment on a home could cost as much as _______ of the actual price of the home.
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20%. This is generally the upper limit of a down payment.
4.
Owning a home is _______.
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None of the above.It depends on many factors, such as location and the state of the housing market.
5.
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.