Equity
What is an asset
A resource controlled by an individual or company that provides an economic benefit to them
A loan is...
the amount borrowed to cover the purchase
A property value is
the estimated price of a home
Tenant responsibilities can include
(just one)
Cleaning, lawn, driveway and sidewalk
Following pet restrictions, notices and fees outlined in the rental agreement
rental responsibility
What is a liability
A legal or financial obligation to pay money, deliver goods, or provide services to another party in the future
Is a mortgage a liability or an asset
Liability
A high property tax is the result of
a high government appraisal
Renters insurance covers
loss of personal belongings due to damage or theft
Reporting issues as they arise
Rental responsibility
What is negative equity
The value of the home is less than the balance of the loan, considered a liability
a percentage of the loan annually on top of the loan amount
Interest
A government appraisal determins
the property tax rate for the home
paid when the tenant leaves the lease it ends
Unfavorable real estate market
Homeowner risk
Appraised Value = 200,000
Mortgage Loan = 150,000
What is the equity
50,000
What happens if you don't pay your mortgage
The bank reclaims the house
A bank appraisal determins
if the value of the loan matches the property value
a security deposit is
paid to ensure the property is not damaged, kept by the landlord if damage is found
Property value falls
Homeowner risk
Mortgage Loan = 346,000
Appraised Value = 296,000
The equity is
-50,000
What are the longest the term lengths can be as of now
30 years
Why do mortgage companies require homeowners insurance to get a mortgage
to protect their investment
two possible up front costs
security deposit, first and last months rent, application fees, pet fees
Following city and homeowners association requirements
Homeowner responsibility