Everfi More2

Question 1

Mortgages

Answer 1

loans to individuals or businesses to purchase homes, land, or other real property

Question 2

Appreciation

Answer 2

a percentage of increase in the value of the property over it’s value when it was originally purchased.

Question 3

Depreciation

Answer 3

the loss of value of an asset as a result of wear and tear, age, or obsolescence

Question 4

Tax Incentives

Answer 4

A tax break used to reward people for investing or spending in a way that promotes economic growth.

Question 5

Lease Terms

Answer 5

rules a tenant must agree to abide by before moving in

Question 6

Balloon Payment

Answer 6

a financing agreement in which the last payment of a loan is much higher than the regular monthly payment

Question 7

Liens

Answer 7

A charge or claim which one person has upon the property of another as security for a debt or obligation

Question 8

Foreclosure

Answer 8

The process by which a home owner loses their home due to non-payment of mortgage, violating the due on sale clause, failing to keep taxes and insurance paid, or failing to maintain the home.

Question 9

Fixed Rate Mortgage

Answer 9

The monthly payment doesn’t change, regardless of what happens to market interest rates. No matter how much interest rates fluctuate, your payment remains the same.

Question 10

Adjustable Rate Mortgage

Answer 10

also known as a variable-payment mortgage has an interest rate that increases or decreases during the life of the loan