Credit
This three-digit number summarizes your credit risk to lenders.
Credit Score (FICO Score)
This three-letter acronym represents the total cost of borrowing money on a credit card over the course of a year, including interest and fees
APR
This budgeting practice advocates saving BEFORE paying any bills
"Pay Yourself First"
This type of mortgage features an interest rate that stays the same for the entire life of the loan
Fixed Rate Mortgage
What is the recommended % (limit) that people should spend on their housing
30%
What is the low end & high end of FICO Credit Scores
300-850
Name 3 things to examine when shopping for a Credit Card
Annual Fee
APR
Perks
In the popular 50/30/20 budget plan, identify the categories for each of the numbers.
50% Needs
30% Wants
20% Save
If your home is worth $500,000 and you owe $350,000, this is the dollar amount of your equity
$150,000
Landlords use this legal procedure to remove a tenant who has breached their lease agreement or stopped paying rent
Eviction
Name & explain 3 of the "C's" of Credit
Character (Credit History)
Capacity (income)
Collateral (assets of value(
Capital (savings, net worth)
What is the term for the maximum amount of money a lender allows you to borrow on a single card.
Credit Limit
This detailed budgeting method requires you to assign every single dollar of your income to a specific category
Zero Based Budget
What is meant by a 5/1 ARM?
Mortgage rate is fixed for 5 years then adjusts annually with the market
Name 3 disadvantages of renting
Not building Equity (ownership)
Cannot make changes to property
Pet policies or restrictions
Lease could change at renewal time
Making up 35% of your total score, this is the most influential factor in determining your FICO credit rating.
Payment History (Paying on time)
Name all 5 of the areas that make up your credit score
Credit History
Credit Utilization Ratio
Length of Credit history
New credit
Mix of Credit
This term refers to the total amount of money you take home after taxes (and deductions like health insurance) are removed from your paycheck.
Disposable Income or Net Income
What is the most popular mortgage package in the USA?
30 Year Fixed Rate Mortgage
Name 3 advantages of renting (instead of owning)
Flexibility
Not responsible for maintenance
Cheaper (less per month)
To maintain a healthy credit score, experts recommend keeping this "ratio" below 30%.
Credit Utilization Ratio
Closing an old, unused credit card can actually hurt your score by reducing this specific factor
Length of Credit
This term refers to the amount of money you have left after taxes, deductions and been removed from your check AND bills have been paid (nicknamed "Spending Money")
Discretionary Income
This term describes the difference between the current market value of your home and the amount you still owe on your mortgage.
Equity
What is meant by "First and Last Month's rent" required
Renter must pay double rent up front