Personal Finance Courses: Housing

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1.
_______ are fees you pay to the lender in exchange for a reduced interest rate on a home.
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Points. Points are fees you pay to the lender in exchange for a reduced interest rate. A point is 1% of the mortgage amount.
2.
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.
3.
When you make a mortgage payment, all of it goes toward interest.
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False. It's a mix of both, though the proportion that is interest declines over the life of the loan.
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.
Renters must pay condominium fees.
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False. Owners of condominium units must pay those fees, though they may factor them into any rent they charge to renters.