Question

1.If you rent a home rather than buy one you will not accumulate an equity interest in the property.

True or False

2.Some of the recurring costs associated with either renting or owning a home are uncertain. You must budget for these uncertain costs to limit the chances of financial distress.

True or False

3. Mortgage rates are uniform and equal across all cities and counties in the United States.

True or False

4.Adjustable rate mortgages shift risk from the borrower to the lender.

True or False

Answer 1

1. True. Because when you buy property that means you're building up equity. The value will be increased unlike paying rent is like giving away money.

2. True. Indifference of whether renting or owning a property some costs still remain uncertain as they depend on external factors like rent, rates, etc.

3. False. Mortage rates are not uniform and equal. They change from state to state and from country to country.

4. False. Adjustable rates mortages transfer part of the interest rate risk from the lender to the borrower.