Key lease and mortgage terms, the renting versus buying decision, and other housing vocabulary, distinct from the budgeting focus of the Personal Finance Basics deck.
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- What is a lease term?
- The period of time during which a rental agreement is binding between landlord and tenant.
- What is a security deposit in renting?
- Money paid upfront by a tenant to cover potential damage or unpaid rent, typically refundable.
- Name two common landlord responsibilities.
- Maintaining the property in safe, habitable condition and making repairs promptly.
- What is an eviction notice?
- A formal notice from a landlord giving a tenant a set time to vacate the property.
- What is a month-to-month lease?
- A rental agreement that automatically renews each month unless terminated by either party.
- What is a fixed-term lease?
- A rental agreement for a specific period, usually one year, that ends on a set date.
- What is rent control?
- Legal restrictions limiting how much a landlord can increase rent each year.
- What is a mortgage?
- A loan used to purchase property, with the property serving as collateral for the lender.
- What is a down payment?
- The initial sum paid by a buyer, typically expressed as a percentage of the purchase price.
- What does the interest rate on a mortgage represent?
- The annual percentage the lender charges for borrowing money.
- What is the principal on a mortgage?
- The original amount borrowed, excluding interest.
- What is amortization?
- The process of paying off a loan through regular installments over a set period.
- What is a fixed-rate mortgage?
- A mortgage where the interest rate stays the same for the entire loan term.
- What is an adjustable-rate mortgage (ARM)?
- A mortgage where the interest rate changes periodically based on market conditions.
- What are closing costs?
- Fees and expenses like title, appraisal, and inspection paid at the end of a home purchase.