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