Rent vs Buy Key Terms Quiz

3 quick questions on the terms from the Rent vs Buy calculator. Answer one at a time, then see your full results at the end.

Question 1 of 3

What does "equity" mean when it comes to your home?

The total amount of interest you've paid on your mortgage so far The part of your home you actually own — its value minus what you still owe on the mortgage A type of home insurance that covers structural damage The annual property tax assessment on your home

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Question 2 of 3

"Amortization" refers to...

The process of increasing your home's resale value through renovations A penalty fee for paying off a mortgage early How a loan payment splits between interest and principal, shifting more to principal over time The legal process of transferring property ownership at closing

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Question 3 of 3

"Opportunity cost" in a rent-vs-buy decision is...

The real estate agent's commission on a home sale The extra cost of buying in a competitive housing market A tax deduction available only to first-time homebuyers What you give up by tying up cash in a down payment instead of investing it elsewhere

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Test what you learned: Rent vs Buy key terms