Renting a House
A person can afford to spend ___________ of their monthly income on monthly rent
30%
A person can spend __________ times their annual salary when buying a house
3 to 5 times
Rachel was gifted money from her parents to buy her first home, so she only needs to take out a mortage for $65,000 to cover the rest. She plans to put 5% down on the property. How much money does she need to save?
$3,250
Give three examples of bills you might pay when owning or renting a house.
Electric, cable, internet, phone, water, trash
What is a landlord?
The person who owns and rents a house or property
Why is it important to purchase renters insurance?
So that if something is damaged or stolen, you are covered!
If a person has an annual salary of $65,000, how much can they afford to spend on a house?
What would a 3.5% down payment be on a loan of $99,258?
$3474.03
Give two examples of what homeowner's insurance covers.
Storms, burglaries, fire, smoke, flood
What is a mortgage?
a property loan
If a person makes $2,400 a month, how much can they afford for one month of rent?
$720 per month
If a person makes an annual salary of $55,000, can they afford to buy a house that costs $240,000? If not, how much more money do they need to make annually?
No, they need to make $5,000 more annually.
Homer bought a $185,000 home! Congrats Homer! He's not sure what percentage to put down, but he has $40,000 saved. What is the largest whole percent he can afford to put down?
21% down will be $38,850
When do you pay a security deposit? When do you get the money back?
You pay the security deposit BEFORE you move in, and you get the entire deposit back when you move out as long as there is no damage to the property.
What is the term of a mortgage?
the period or time, or number of years, you take the loan out for
If a person has an annual income of $43,800, how much can they afford on one month of rent?
$1,095 per month
If a person has a monthly income of $3,560, how much should they spend on a house? Hint: Calculate their annual income first!
Annual income: $42,720
Home: $170,880
Eric bought a new condo for $250,000, and plans to put 20% down on the home. How much money will he need to borrow from his lender?
$200,000
Billy's water bill is charged quarterly, based on usage. If he is charged $46.50 in quarter 1, estimate how much money he will pay annually.
$186
What is interest?
a payment charged to the person borrowing the money
(what the bank makes you pay back after you borrow money from them--this is how they make money)
How much should a person make annually if they want to rent a house for $1,170/month?
$46,800 annually
Your homeowners policy has a premium of $150, a deductible of $3000, and a limit of $500,000. Your home suffers $15,000 in damages from hurricane winds. How much money do you pay? How much does your insurance pay?
You pay $3,000. Your insurance company pays $12,000.
Jennifer is buying a starter home for $110,000. She has enough money to put 15% down on her home, but wants to save enough money to put 20% down. How much more money would she have to save?
$5,500 more
Bob's homeowner insurance policy has a premium of $107/month, a deductible of $5,000, and a limit of $500,000. If Bob had a house fire, and it cause $560,000 worth of damages, how much would Bob have to pay? How much would his insurance pay?
Bob would pay $60,000. His insurance would pay $500,000.
What is a down payment?
A percentage of the price or amount paid before you borrow money