Test your knowledge

Choose wisely. There is only one correct answer to each question.

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1.
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.
2.
An amount paid to secure a price agreement is called _______.
Choose wisely. There is only one correct answer.
Earnest money. To secure the agreed price, the buyer is expected to give earnest money to the seller to secure the agreement.
3.
Having a cosigner when you sign a lease on an apartment can be helpful if _______.
Choose wisely. There is only one correct answer.
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.
4.
What kind of loan uses the equity in your home as collateral so that you can borrow money?
Choose wisely. There is only one correct answer.
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.
5.
Which of the following is more likely to have predictable housing expenses?
Choose wisely. There is only one correct answer.
A renter. Renters do not get hit with unexpected expenses, as owners sometimes do.