Test your knowledge

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

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Review your answers below to learn more.

_______ are fees you pay to the lender in exchange for a reduced interest rate on a home.

Choose wisely. There is only one correct answer.

Property taxes

Earnest dollars

Points

Points. Points are fees you pay to the lender in exchange for a reduced interest rate. A point is 1% of the mortgage amount.

Renters must pay condominium fees.

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True

False

False. Owners of condominium units must pay those fees, though they may factor them into any rent they charge to renters.

Mortgage insurance protects your home and its contents.

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True

False

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.

Owning a home is _______.

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More expensive than renting

Less expensive than renting

About equal in cost to renting

None of the above

None of the above.It depends on many factors, such as location and the state of the housing market.

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 good credit

You have bad credit or not enough credit history

You rent at a large apartment complex

You rent a house

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.

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