Lesson 1

Key Terms

Cost of Living: the average cost of the basic goods and services needed to sustain a certain standard of living
Standard of Living: the level of wealth, comfort, material goods, and necessities available to a group of people​​​​​​​
House Poor: when someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goals

Lesson 2

Key Terms

Renting: periodic payments (usually monthly) by a tenant to a landlord in return for the use of a property
Fixed-Rate Mortgage: a mortgage with a set interest rate for a set number of years​​​​​​​
Mortgage Principal: the amount borrowed (that has to be paid back) to purchase a home

Lesson 3

Key Terms

Amenities: things that help provide convenience, comfort, or enjoyment
Leasing Contract: a legal contract that allows the renter, or lessee, rights to the use of a property owned or managed by the lessor for a period of time
Legal Contract: an agreement made between two or more parties that is enforced by law​​​​​​​
Acknowledgment Clause: the portion of a legal contract signed by both parties

Lesson 4

Key Terms

Mortgage: a loan obtained for the purchase of a home
Down Payment: a lump sum of money, usually a percentage of the total price of that home, paid by the buyer at the time of purchase​​​​​​​
Private Mortgage Insurance (PMI): insurance that protects lenders against loss if the borrower defaults on the loan; does not go toward paying down your mortgage at all​​​​​​​
Equity: the increase in value of a home over time; the difference between the amount owed and what the home could be sold for