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Housing Vocabulary
Misc.
Home Loans
Steps to Buying a Home
100
The cost of borrowing money.
What is INTEREST.
100

Typical down payment on a house.

What is 20%.

100
Unconventional loan that could go up or down each month.
What is an ADJUSTABLE RATE LOAN.
100
1st Step.
What is DETERMINE HOME OWNERSHIP NEEDS.
200
The value of your home goes up. Historical average is 1.5% a year after inflation.
What is APPRECIATION.
200
A home loan payment.
What is a MORTGAGE.
200
Typically a fixed rate loan for 30 years.
What is a CONVENTIONAL LOAN.
200

4th Step.

What is OBTAIN FINANCING.

300

The fees associated with finalizing the sale of a house.

What are closing costs?

300

True or false: a smaller down payment will reduce the amount of the mortgage needed.

What is false?

300

True or false: Conventional mortgages usually have a rate that changes as market interest rates change.

What is false?
300
Last Step.
What is CLOSE THE PURCHASE TRANSACTION.
400
This person helps you buy/sell a home.
What is REALTOR.
400
Taking out another mortgage on your home.
What is called TAKING OUT A SECOND.
400
Final payment is much larger than previous payments.
What is a BALLOON LOAN.
400

2nd Step.

What is LOCATE AND EVALUATE A HOME.

500

Selling a house without the help of a realtor

What is sale by owner.

500

The down payment you should have for a $100,000 house.

What is $20,000?

500

The total cost of a house you can afford to take out a mortgage on if you have a $35,000 down payment saved up.

What is $175,000?

500

Middle Step.

What is PRICE THE PROPERTY.