Real Estate Yes or NoOnline version Familiarize yourself with Veteran-level financial literacy terminology! Can you complete the entire set? by WM 1 The HOA is a group that enforces rules and maintains common areas in a community, often requiring monthly fees Yes No 2 An inspection is a professional evaluation of a home's condition before purchase Yes No 3 Leverage is borrowing money to invest more money, hoping for higher returns Yes No 4 Rental yield is the annual rental income as a percentage of a property's price Yes No 5 The debt-to-income ratio is the percentage of income used for debt payments, which affects mortgage approval Yes No 6 A fixed-rate mortgage is a home loan with an interest rate that changes over time Yes No 7 An adjustable-rate mortgage is a home loan with a set interest rate that doesn't change Yes No 8 Cash flow refers to the money left after paying expenses on an investment property Yes No 9 A deed is a physical document transferring property ownership Yes No 10 A tenant is a property owner who rents out space Yes No 11 Flipping is when you buy a home that needs repairs for a lower price Yes No 12 Capital gains tax is a tax on profit made from selling real estate Yes No 13 Escrow is the portion of a home that a homeowner actually owns, calculated as the home's value minus any outstanding mortgage Yes No 14 A down payment refers to the fees paid at the end of a real estate transaction, which includes lender fees, title insurance, and taxes Yes No 15 A short sale is when a homeowner fails to pay the mortgage and the lender takes back the property Yes No 16 Closing costs are the fees paid at the end of a real estate transaction, including lender fees, title insurance, and taxes Yes No 17 Foreclosure is when a property is sold for less than the mortgage balance, often to avoid repossesion Yes No 18 Tax value is the dollar amount a local government assigns to a property, which is used to determine how much property tax a homeowner owes Yes No 19 The vacancy rate is the percentage of rental properties that are unoccupied Yes No 20 Zoning is a legal concept that proves property ownership and describes ownership rights and responsibilities Yes No 21 A pre-approval is a lender's confirmation of how much a buyer can borrow before house hunting Yes No 22 A landlord is a person who rents a property Yes No 23 An origination fee is paid upfront to reduce a mortgage's interest rate Yes No 24 Capital gains refer to the profit made when selling something for more than it was purchased for Yes No 25 Market value is the price a home would likely sell for in the current market Yes No 26 Property tax is tax paid by homeowners based on property value Yes No 27 A real estate agent is a licensed professional who helps buyers and sellers with real estate transactions Yes No 28 Equity is a third-party account that holds money or documents until all conditions of a sale are met Yes No 29 A fixer-upper is when buy and resell a property quickly for profit Yes No 30 A listing is the price a home would likely sell for in the current market Yes No 31 Refinancing is replacing an old mortgage with a new one, oftentimes to get better terms Yes No 32 A REIT is a ompany that owns income-producing real estate Yes No 33 Points are charges by lenders to process a mortgage application Yes No 34 A mortgage is a loan used to buy a house, which you pay back over time with interest Yes No 35 A title refers to the government rules that determine how land can be used, such as residential or commercial Yes No 36 An appraisal is the upfront amount a buyer pays when purchasing a home, which is a percentage of the total price Yes No
