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.
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.
3.
What kind of loan uses the equity in your home as collateral so that you can borrow money?
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Home equity loan. Your home equity is the difference between what you own (the current market value of your property) and what you still owe on the property. You can take out a loan against this amount, called a home equity loan.
4.
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.
5.
The proportion of your mortgage that goes to interest _______.
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Declines over time. Your mortgage payment consists of both principal and interest. The proportion that is interest starts out high and gradually declines over the life of the loan.