Compare renting and buying with the full costs: test your skills
The sticker price of a mortgage rarely tells the whole story — here's how to run the real math. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Count the full cost of owning
- Include transaction costs
- Weigh flexibility against equity
- Practice
1. What does comparing rent with only the mortgage payment miss?
- Practice
2. A common maintenance rule of thumb is…
- Practice
3. Who usually benefits from renting?
- Key idea
4. Which statement best explains "Mortgage is not the cost of owning"?
- Key idea
5. Which statement best explains "Buying and selling cost money"?
- Key idea
6. Which statement best explains "Time decides"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
A $320,000 home: 3% closing costs to buy, 6% to sell at the same price. Total transaction costs?
Show the answer
$28,800
3% = $9,600. 6% = $19,200. Total $28,800.
Add property tax, insurance and 1% maintenance to a mortgage payment you are considering.
More tests in this bootcamp
- Compare renting and buying with the full costs
- Check home affordability with the 28/36 guideline
- Balance your down payment, PMI and cash cushion
- Count closing costs before you buy a home
- Build a home repair reserve before something breaks
- Explore shared housing costs and landlord responsibilities
- Understand REITs: property exposure through investments
- Final exam: Housing and real estate