Hello AVG - Welcome to NamePros :tu:
[1] Yes, after 1 year of registering the name, you will be prompted to renew your domain for another year [or more if you wish]. The cost of renewals vary, but usually cost the same price as the price you registered it for. Note, if you don't pay for it, it will be dropped, and it will be harder for you to pick it up to reg again.
[2] Depending on where you register the name, hosting usually does not come with the domain. Cheap registrars allow you to change NameServers, and you will have to provide hosting yourself. You can have another host, and use URL forwarding so when someone accesses your URL, it forwards to another host. There are many cheap hosts around where you can just host your domains there.
:tu: