101 of Renting
What is typically not covered by renters' insurance?
Floods
Do homeowners need home insurance?
YES
Unlike your fixed monthly rent payments, owning a home requires a bit more. What are some of the indirect costs of owning a home?
Utilities such as electricity, water, REPAIRS!!
List one advantage of getting a realtor’s help in finding a place to rent.
They might know about better deals or better areas.
Why do people feel like buying a home is the ultimate end goal in life? Why is owning a home so impactful?
It provides a sense of ownership and proves success.
What does Renters' insurance cover?
Water damage, fire, smoke, or theft.
You can fill out this document to take note of all of your home belongings in the case you have to make an insurance claim
Home Inventory
OH NO!! Your Uncle Billy fell off your trampoline!! The ___ liability coverage under renters insurance protects you if someone is injured in your home and pays legal costs if you are liable.
Personal
You are planning to relocate to a major city like seattle for work and need to figure out your living situation. You calculate your cities price-to-rent ratio and it ends up being 18. What's the best course of action?
Renting!!
What is something that both potential renters and potential homeowner have in common when they are looking for where to live?
Cost of Living, job availability, education, safety, transportation.
What do financial experts say about renting or buying with the price-to-rent ratio
Experts say that if a city’s price-to-rent ratio is more than 15, renting is probably less expensive.
In order to qualify for home loan terms that make home buying a good investment, you’ll need to prove what 3 main things?
Source of income, a credit score of 760 or higher, and a down payment at or close to 20% of the purchase price
Oh NO! Your job site just closed down and are relocating, good news they still want you on the team! Bad news, you have to move across the country! Would moving quickly and inexpensively be more attainable with renting or owning your own home?
Renting!
What percentage of your monthly income do financial advisors suggest to have for renting or owning a home for a stable budget?
30%
What is a major benefit of owning a home?
It is an asset.
What is a Price to Rent ratio?
It is a metric used to determine whether buying or renting a property is more affordable. It's calculated by dividing the median home price by the median annual rent in a specific area.
What happens to the monthly payment (APR) on an adjustable-rate mortgage loan when interest rates in the economy rise?
The APR rises
If Billy makes an annual after tax income of 55,463, what is his monthly budget for rent?
$1386.58
How much of your allocated budget for housing is allocated to utilities?
5-10%
If you are a dependent, your parent's homeownership policy may cover your stuff even if you aren't living at home. Usually it is limited to about ___ % of your personal property
10%!!!!!!!!!!!!!!
How much money do you have to have to qualify for renting an apartment?
Most apartments require you earn 3 times the amount of the rent - gross pay.
You should have an emergency fund of at least ____ times your monthly expenses left over after your down payment?
3 times!
If Billy makes an annual after tax income of 55,463, how much of his monthly budget for rent goes toward utilities?
$462.19-$693.29
What are two things APR included besides the interest rate
Taxes, insurance, fees
What is the most expensive utility?
Electricity