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Personal Finance Courses: Housing

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1.
Why does having a cosigner on an apartment lease make a landlord more willing to rent to you than if you didn't?
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The cosigner is liable for the rent if you default on it. The cosigner is like an insurance policy on the rent.
2.
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.
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.
As a rule of thumb, a mortgage payment shouldn't exceed how much of your monthly gross income?
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30%. The rule of thumb for monthly payments is that they shouldn't exceed 30 percent of your monthly gross income.
5.
A down payment on a home could cost as much as _______ of the actual price of the home.
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20%. This is generally the upper limit of a down payment.