Housing Flashcards
The Landlords responsibilities are…?
- Make sure utilities work
- The common area is clean
- Comply with state, local and housing codes
- pay interest on security deposit
What is the #1 thing to think about when buying/renting house/apartment?
Location!!!
Evit
When your legally forced to leave
Sublet
Someone who takes over the lease
What does PITI stand for?
Payment (mortgage amount) Interest (on the montage loan) Taxes (property) Insurance (home owners or renters) (breakdown of total housing cost)
When you break down a lease, you think about what?
Total move in cost Length of lease Pets allowed? Can alterations be made? Who pays for utilities?
Condominium
(Grandma me)
Common areas, shared ownership, property owner cares for lawns/gardens
Row house
A row of houses joined by common sidewalls
Town house
Multiple family units, no common area, individual ownership
Ownerships
Condominium
Townhouse
Cooperative
When you find a house you should (blank) and (blank)
Find a mortgage lender, and have it inspected
Mortgage
Legal document that pledges the house and a security for a loan
Escrow account
Account you pay into for housing costs
The money is held until it needs to be sent to the appropriate person
An application for a mortgage requires what?
Personal info, employment/salary, and current debt
Down payment should be what % purchase price?
20%
Credit report
A report that includes data from all 3 major credit bureaus
Credit score (FICO score)
Ranges from 350-800
Mortgage lender wants a score of 650+ for a conventional mortgage
Debt-to-income ratio
What of scenario, determines qualification for conventional mortgage
Takes estimate mortgage payment and adds any current installment and credit card payment
For conventional mortgage, lender generally want debt ration under (blank)%
38%
Appraisal
Estimate value made by a qualified person (required by insurance companies)
Ballon payments
A large payment at the end of the loan, which pays off the rest of the loan
Bimonthly
Payments are made twice a month, cutting the cost in half because it is payed more quickly
Homeowners insurance, 2 main category’s
Property and liability coverage
Benefits like having your house close to a fire station lower what?
Premium
Real vs personal property insurance
House
Things you own inside the home
Physical damage protects you from damage to your house, or someone else’s?
Someone else’s
What sources do you use to find an apartment?
Family/friends
Websites
Newspaper
Agencies and/or realtor
Why might someone choose to buy rather than rent?
Independence
Tax advantages
Investment opportunity
How much of your gross income should you spend when searching for a home?
30%
Property coverage
Protects you house (real property) and stuff (personal property) from damages
Liability coverage
Covers people getting hurt at your house or you damaging other people’s property
Renters do not need to cover the actual structure, but instead cover…?
Personal property
Personal liability
Protects you from lawsuits of someone was hurt on your property
Medical payment
Protects you from paying medical bills if someone is hurt on your property
Physical damage (one of the liabilities)
Protects you from damage you might commit on someone else’s property
The tenants rights are…?
Receive a written lease, or withhold rent if:
- building has code violations
- landlord failed to repair
- landlord failed to pay utility bill
Someone broke in and took your stuff. Which coverage would you use?
Personal property
Someone stepped in nails in your garage during a party. Which coverages apply?
Medical payments and personal Liability
Tornado record your house. Which coverage would pay for it?
Real property
A friend falls down the stairs at your house. You use Med to pay. Why not Liability?
Not your fault she got hurt
Neighbors window broken by you. Which coverage will pay for it?
Physical damage
