Test your knowledge

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

Keep studying!

Review your answers below to learn more.

Tenants renting apartments are liable for _______.

Furnace costs

Interest costs

Mortgage costs

None of the above

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.

It is possible to negotiate the rent on an apartment.

True

False

True. Though not all landlords do, some are open to negotiating if it will help them rent a unit.

The current market value of your home, minus what you owe on it, is commonly known as your _________.

Mortgage

Interest

Capital gain

Home equity

Home equity. Your home equity is the difference between what you own (the current market value of your property) and what you owe on the property.

Why does having a cosigner on an apartment lease make a landlord more willing to rent to you than if you didn't?

The cosigner is liable for the rent if you default on it.

The cosigner is likely to pursue legal action against you so he or she can get off the hook.

Having a cosigner makes you look more responsible.

It doesn't. Having a cosigner doesn't help at all.

The cosigner is liable for the rent if you default on it. The cosigner is like an insurance policy on the rent.

Mortgage insurance protects your home and its contents.

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.