"They live down past the house."
Translation:De bor nedenfor huset.
They both mean "to live", but "bor" emphasizes where you live. She "resides" in Oslo. Hun bor i Oslo. If Hun lever i Oslo, you are emphasizing her actions ... she eats, breathes, drinks, sleeps, plays, works, goes to school in Oslo, i.e, she "lives" in Oslo. She resides, no other life actions pop into your mind with "bor". At least that's my take on it. Experts?