PFP Basics
Engage, Discover, Analyze, and Recommend are the required steps for what process?
What is Personal Financial Planning?
History of timely payments, length of credit history, credit mix, credit inquiries, and amount owed are all metrics to consider when determining…
What is Credit Score?
HOLD IT! This fee lets house sellers know that you mean business but need more information.
What is a Due Diligence Fee?
A fee or credit associated with the cost of obtaining a mortgage.
What is a point(s)?
Automobile, credit card, & housing payments are categorized as this.
What are fixed expenses?
Also considered a natural disaster, this debt repayment strategy focuses on interest rates rather than balance.
What is an Avalanche?
This makes up 35% of a credit score.
What is the history of timely payments?
A combination of property tax and homeowners insurance that protects the lender.
What is Escrow?
This is a type of mortgage payment that typically has a lower interest rate than a traditional mortgage payment due to the borrower assuming more risk.
What is a balloon payment?
When there are two incomes in a singular household, this many months of expenses should be saved for the emergency fund.
What is 3 months?
The most rigorous financial planning examination will earn you this certification.
What is a Certified Financial Planner (CFP)?
Pay all debt on time, keep utilization below 30%, maintain cards of credit over a long period of time are all factors that contribute to this.
What are ways to improve credit scores?
This ratio is recommended to be between 28%-30%.
What is PITI?
Under this rule, a single homeowner can exclude a gain of up to $250,000.
What is the two-out-of-five rule?
This ratio is generally the highest financial ratio and should be no higher than 45% for a conventional mortgage.
What is Debt-to-Income Ratio?
This is the 20 in the 50-30-20 rule.
What is spending on savings and debt repayment?
This is the third highest weighted component in determining credit score accounting for 15%.
What is Length of Credit History?
This is a required payment on your mortgage when you own less than 20% of the equity in your mortgage.
What is Private Mortgage Insurance?
These rates are becoming more popular due to high interest rates.
What is an Adjustable Rate Mortgage?
Debit or credit? The three main reasons to use a credit card instead of a debit card are increased credit usage, points/rewards gained from using the card, and what third reason?
What is Fraud Protection?
A single person has monthly payments of auto $205, groceries $250, clothing $150, Credit Card balance of $1,250, with minimum payment of $35, Utilities $135, Entertainment $250, housing $350, and property tax $75. Personal Finance Planning professionals would recommend having an emergency fund of…
What is $6,300?
When the lender reports the information about the balance. Credit score is based on the amount on…
What is Statement Closing Date?
Insurance premium + (2 months worth of reserve) + (1 monthly tax payment + 2 months of reserve) + $50 for the lender if he/she wants equals...
What is the escrow calculation?
These two Congressional created entities, named after people, are often linked and help provide liquidity and lower interest rates to mortgage borrowers?
What is Fannie Mae and Freddie Mac?
Leave the debit card at home! This is the maximum liability amount a credit card holder can expect as a result of fraud.
What is $50?