Personal Finance Chapter 7 Vocabulary

Question 1

The ability to move easily from place to place

Answer 1

Mobility

Question 2

A legal document that defines the conditions of a rental agreement between a tenant and a landlord.

Answer 2

Lease

Question 3

An amount of money paid to the owner of a property by a tenant to guard against any financial loss or damage the tenant may cause.

Answer 3

Security Deposit

Question 4

The value of a home less the amount still owed on the money borrowed to purchase

Answer 4

Equity

Question 5

Money that is held in trust until it can be delivered to a designated party

Answer 5

Escrow Account

Question 6

Extra charges a home buying might pay in order to get a lower interest rate on a mortgage

Answer 6

Points

Question 7

A type of mortgage that has an interest rate that increases or decreases during the life of the loan

Answer 7

Adjustable-Rate Mortgage (ARM)

Question 8

Taking out a new mortgage to lower the interest rate or to get a smaller payment.

Answer 8

Refinance

Question 9

Protects the buyer in case problems with the title are found later.

Answer 9

Title Insurance

Question 10

An estimate of the current value of a property

Answer 10

Appraisal