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