Vocabulary
Affording Rent
Lease/Security Deposit
Affording Mortgage
Down Payment, Insurance, Closing Costs
100
A person who owns an apartment or house and rents it to other.
Landlord
100
Travis earns $1,150 per month. How much rent can he afford?
25% of 1,150 = 0.25 x 1,150 $287.50 per month
100
Nick signed a one-year lease. He pays $520 a month in rent. If he wants to move out 4 months early, how much will he owe when he moves out?
520 x 4 = $2,080
100
Susan's annual income is $28,500. How much can she borrow?
2.5 (banker's rule) x 28,500 = $71,250
100
Wesley's homeowner's insurance is $900 per year. The first payment is 20%. What is his first payment?
900 x .20 = $180
200
An legal contract between the renter and the landlord.
Lease
200
Darla earns $5,500 per month. How much rent can she afford?
25% of 5,500 = 0.25 x 5,500 $1,375 per month
200
Tyrone pays $600 per month for rent. He signed a one-year lease that began on March 1. He decided to move out at the end of December. How much money does Tyrone owe when he moves out?
12 months - 10 months = 2 months 2 x 600 = $1,200
200
Susan's annual income is $32,500. How much can she borrow?
2.5 (banker's rule) x 32,500 = $81,250
200
Jamie's house costs $162,000. She wants to put a 5% won payment on the house. How much will this be?
162,000 x .05 = $8,100
300
The money a renter pays to the landlord before moving in.
Security Deposit
300
Darren earns $22,500 per year. How much rent can she afford?
22,500/12 months = 1,875 25% of 1,875= 0.25 x 1,875 $468.75 per month
300
Lucretia will pay $550 per month for rent. The security deposit is one and a half months' rent before moving in. How much does she owe all together before moving in? (Rent is paid before moving in)
550 x 1.5 = 825 825 + 550 = $1,375
300
How much is John's annual income if he can afford a $125,000 mortgage loan?
125,000/2.5 = $50,000 per year
300
Jason's real estate tax is $975 per year. His monthly mortgage payment is $608. How much total per month will Jason pay if he pays his mortgage and tax at the same time?
$689.25
400
A local tax paid on property by the owner.
Real estate tax
400
Keyshawn earns $34,500 per year. How much rent can she afford?
34,500/12 months = 2,875 25% of 2,875= 0.25 x 2,875 $718.75 per month
400
Gloria Moved out of her apartment. There were stains on the carpet. The landlord paid a carpet cleaner $350 to remove the stains. Gloria paid a $1,000 security deposit. How much will she get back?
1,000 - 350 = $650
400
How much is John's annual income if he can afford a $275,000 mortgage loan?
275,000/2.5 = $110,000 per year
400
Joe's real estate tax is $1,500 per year. His monthly mortgage payment is $890. How much total per month will Joe pay if he pays his mortgage and tax at the same time?
$1,015
500
Pays for damages such as smoke, fire, water, theft and some types of weather.
Homeowner's insurance
500
Theresa's hourly wage is $9. She works 40 hours a week . If she spends 30% of her monthly pay on rent, how much does she spend? (use 4.2 to represent weeks per month)
9 x 40 = 360 360 x 4.2 weeks = $1,512 1,512 x .30 = $453.60 for rent
500
Joe and Adam share their housing expenses equally. When they move out, the landlord spent $250 to have the door fixed that they had damaged. If they spent $1,500 on the security deposit, will Joe have enough to afford putting his portion of the security deposit towards a $700 deposit on his next apartment?
1,500 - 250 = $1,250 1,250/2 people = $625 per person $625 < $700 No, Joe will not have enough.
500
Can Tom afford a $285,000 house if he makes $105,000 per year?
285,000/2.5 = 114,000 No, he needs to make $114,000 per year according to the Banker Rule.
500
Jason's real estate tax is $1,074 per year. His monthly mortgage payment is $1,076. How much total per month will Jason pay if he pays his mortgage and tax at the same time?
$1,165.50
M
e
n
u