Personal Finance Courses: Housing

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

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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.
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.
3.
Renter's insurance exists to protect whose belongings?
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The renter's. Renters buy insurance to protect themselves from the financial effects of losing their belongings.
4.
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.
5.
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.