Name ________________________
Date ____________________
Hour ________________
Chapter 10 Study Guide
1. One of the advantages of renting is that you have ______ responsibility for maintenance
and upkeep.
2. Condominiums are owned by ____________ and common parts of the property, such as
the grounds and building structures, are owned _________ by the unit owners.
3. When making decisions about a place to live, you should determine how much you can
_________________ and stay _________________________________________.
4. Define Amenities.
________________________________________________________________________
_______________________________________________________________________.
5. T or F: Everyone would own a house if they could afford to do so.
Why is it T or F? ________________________________________________________.
6. Renter’s insurance should be purchased by anyone who ____________ a place to live.
7. A lease specifies the rights and responsibilities of both the ____________ and the
_____________________.
8. A down payment is the part of the purchase price paid in cash ____________________.
9. A lease should include the ____________ of rent and _________ it must be paid.
10. Eric is graduating from college and moving out of the dorm. His best friend found a job
in Texas and plans to move soon. Eric is not sure whether to keep his job in Tulsa or
move to Texas with his friend. He needs a place to live until he decides. Eric should rent
an apartment, either on a ________-to-__________ lease or with a lease that can be
________________ if relocating out of state.
11. Buying a house offers a ________________________ over renting because homeowners
can deduct the ____________ they pay on a mortgage from their personal income
taxes.
12. Wayne wants to buy a place but he does not like doing yard work. Wayne should
consider buying a __________________________.
13. The purpose for a security deposit is to provide ________________________ for the
____________________ for damages you made to the apartment, cleaning fees, or
other costs.
14. What are costs associated with buying a house?
________________________________________________________________________
_______________________________________________________________________.
15. A month-to-month lease can be terminated _________________________________
_______________________________________.
Name ________________________
Date ____________________
Hour ________________
16. Most landlords will ask you to inspect your apartment when you move in, they give you
a form to sign. You should complete the form you were given, making a note of any
needed repairs, sign the form, make a _____________ for yourself, and return it to the
___________________.
17. T or F: Owning a house is a greater financial commitment than renting an apartment.
18. A disadvantage to renting a place to live is finding an apartment that will accept
__________.
19. Juan and Rebecca want to buy a house, but they have no idea what price range they can
afford. They should get _____________________ for a mortgage before looking for a
place to buy.
20. If you want to buy a house, most experts would recommend that you finance it with a
____________________ mortgage.
21. When ______________ an offer on a house, your top priority is making an offer that
includes the contingencies and details that you want considered.
22. The deposit you pay when making an offer to show you are serious about buying the
house is called ________________________.
23. When suggesting to someone advice about buying a house, tell them to buy a house
they can ________________.
24. T or F: Buying a house is the most expensive purchase most people make.
25. In addition to making a mortgage payment month to month, homeowners are
responsible for utilities, property insurance, and maintenance, but not a
____________________.
26. When buying a house, the buyer is required to pay closing costs which includes title
insurance, __________________ and ________________ fees, points, and ___________
costs.
27. If the down payment is less than 20% of the house price, you may be required to pay
_______________________________________________ each payment with your
mortgage payments.
28. To reduce your monthly house payment, you can make a ____________________ down
payment.
29. Suppose your gross monthly income is$3, 000. Using the Housing Expense Ratio, your
maximum housing expense should be $__________________.
30. When renting a place to live, utilities are paid by either the ______________ or
_________________________.