14 Questions
Which factor should be considered when deciding between buying a home or renting?
The price-to-rent ratio
What is one advantage of renting a home?
Flexibility to move around
What is one disadvantage of renting a home?
Monthly rent payments build your landlords’ equity (not yours)
Amelia wants to buy a home for $250,000. Her gross annual income is $50,000. The estimated mortgage payment would be $1,700 per month. Amelia’s other monthly expenses are: Credit card payment - $300, Student loan payment - $700, Car loan payment - $550. What is her debt-to-income ratio?
78%
What is the average down payment for a home in the nation right now?
10%
What is private mortgage insurance (PMI)?
Extra payment embedded within the mortgage that you must pay if you put down less than 20% as a down payment on a house
Why should the age of a house be an important consideration for homebuyers?
Older homes typically require more maintenance and replacement of worn-out components
Which of the following factors should be considered when deciding between buying a home or renting?
The cost of living in the area
What is the formula to calculate the debt-to-income ratio?
Debt-to-income ratio = (Annual income) / (Monthly debt payments)
What is the Price-to-Rent ratio used for?
To decide between buying a home or renting
Which of the following is NOT an advantage of home ownership?
Monthly housing payments can be higher
What is the recommended down payment for buying a home?
20% down
Which of the following is NOT a potential cost of home ownership?
Repairs/Updates
Which of the following is a component of a house that typically requires replacement after 10 to 15 years?
Faucets
Is Renting or Buying a Home Right for You? Find Out with This Quiz!
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