Living on your own
Living on your own can be ______
It can be really great
True or false: Renting is always cheaper than buying
False, not always the case because of maintenance and renter's insurance
What are advantages of having a roommate?
They can help you save on rent and reach your money goals faster.
True or False: Buying a house is a quick and hassle-free process
False, buying a house is a long and patient process.
True or False: Renting is perfectly fine
True
People get in such a hurry to buy. Renting, sometimes, is just ______
It's just patience
What are some factors to consider when looking for a place to rent?
Location, if it's the right time, price range, amenities
A house is an asset that ____ overtime
It's an asset that grows overtime
What is cost of living?
The average cost of the basic goods and services needed to sustain a certain standard of living
What is fixed-rate mortgage?
A mortgage with a set interest rate for a set number of years
When is it a good idea to rent instead of buy?
When you're paying off debt, still building your emergency fund, saving your down payment.
What is a mortgage?
It's a loan that people take out in order to make a payment.
What is house poor?
When someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goods.
It's a good idea to rent while you save up for a ______
For a down payment on a house
Your rent should total no more than ___ % of your take-home pay.
25%
What happens to the value of a house with a fixed rate?
The value won't go up
Name 2 things that cost of living on your own includes
Groceries, furniture, utilities, first month's rent, or renter's insurance
What is a mortgage principal?
The amount borrowed (that has to be paid back) to purchase a home
What is an acknowledgement clause??
The portion of a legal contract signed by both parties
The bigger your down payment, the faster you'll pay off your mortgage and avoid _________
PMI (Private Mortgage Insurance)