Personal Finance Courses: Housing

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1.
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.
2.
_______ 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.
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.
Renting a home is _______ cheaper than owning a home.
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Often. Often, renting is cheaper. But sometimes, it is more expensive. It depends on a lot of factors.
5.
Homes always keep increasing in value.
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False. Not always. Over time, the trend is toward growth, but sometimes home values do drop, even for several years in a row.