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, 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, 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, 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​​​​​​​, 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​​​​​​​, Equity - the increase in value of a home over time; the difference between the amount owed and what the home could be sold for,

Chapter 11

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