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Personal Finance Courses: Housing

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1.
You must pay private mortgage insurance if your down payment on a home is less than _______.
Choose wisely. There is only one correct answer.
20%. If your down payment is less than 20% of the price of the home, you will have to pay for mortgage insurance. This insurance protects the lender (but not you) in case you fail to keep making payments on the home.
2.
An advantage of _______ is that you can build equity.
Choose wisely. There is only one correct answer.
Owning a home. When you own a home, the money that you paid on it will be your equity.
3.
Why does having a cosigner on an apartment lease make a landlord more willing to rent to you than if you didn't?
Choose wisely. There is only one correct answer.
The cosigner is liable for the rent if you default on it. The cosigner is like an insurance policy on the rent.
4.
As a renter, you might find that you are responsible for shoveling snow or cutting the grass.
Choose wisely. There is only one correct answer.
True. Some leases require you to do some maintenance.
5.
Homes always keep increasing in value.
Choose wisely. There is only one correct answer.
False. Not always. Over time, the trend is toward growth, but sometimes home values do drop, even for several years in a row.