INTEREST
A charged for borrowing money that’s calculated based on the loan amount and rate, which is calculated as a percent of the loan amount.
What is SIMPLE INTEREST?
A spending plan that is based on your expenses and income.
What is a BUDGET?
There are a lot of potential advantages in doing this. Examples: it allows you to build equity in it over the years, money that is likely to be repaid when you sell in 10 or 20 years. Offers the promise of payment-free living once paid off, dramatically cutting your expenses later in life. Finally, the interest is tax deductible, potentially saving thousands of dollars per year versus renting.
What is HOME OWNERSHIP?
These loans are backed by the US government and tend to be the cheapest non-veteran loans available. There is more red tape involved with these loans, and homes purchased with these loans must also pass a rigorous inspection, meaning the fixer-upper homes may not qualify.
WHAT IS A FHA LOAN?
When you control your money rather than letting your money control you. When you’re in control, you have choices about how to spend, save, and invest your money.
WHAT IS BEING FINANCIALLY HEALTHY?
These so-called “alternative” financial services typically charge this rather than interest for their services.
What are FEES?
By subtracting your expenses from your income, the amount of money you are saving or losing per month.
What is CASH FLOW?
There are often times when this actually makes more financial sense than buying. If you plan to move within five years or so, the costs associated with maintaining and selling a home probably makes this a better bet.
What is RENTING?
One of the most popular types of mortgages. These are the most predictable mortgages since the interest rate and payment remains the same over the term of the loan. Terms are typically either 15 or 30 years.
WHAT IS A FIXED RATE MORTGAGE?
Anything of financial value, meaning it can either be sold or it generates income. This could include individual possessions like a car or home, investments in stocks or bonds, and cash.
WHAT IS AN ASSET?
Know your worth and remember it changes over time. The important point is that you want it to grow and not shrinks, as long as it is growing according to your plan, the 'number' is completely up to you!
What is NET WORTH?
Serious debt problems can happen because of a single catastrophic event - like the loss of a job. But many times, debt problems happen so slowly that what could have been a manageable situation turns into a life-changing financial burden.
What is a SETBACK?
Once the home is purchased your obligation schedule is for a portion of the loan’s principal (the amount you owe on the home), interest, property taxes, and insurance.
What is a MONTHLY PAYMENT?
The interest may change many times over the term of the loan. Interest rates are typically determined by a widely accepted standard, such as federal interest rates, and will vary depending on that rate.
WHAT IS AN ADJUSTABLE RATE MORTGAGE?
choosing the right loans and managing them responsibly has a major impact on the overall cost of the money borrowed (and your ability to borrow in the future).
WHAT IS PLANNED BORROWING?
. Albert Einstein said, "____is the eighth wonder of the world. He who understands it, earns it... he who doesn’t, pays it."
What is COMPOUND INTEREST?
____helps you stay on track, day-to-day and month-to-month, for meeting your financial goals.
What is a WRITTEN PLAN?
Homeowners are often able to take out low interest home loans to cover large expenses, but these type of low interest loans may not be available for several years after the purchase of a home.
What is an EQUITY LOAN?
This type of loan offers very favorable loan options to veterans. In some loans, a home can be purchased without a down payment.
What is a VA Loan?
This is a debt – something that must be repaid. It could include student loan debt, credit card debt, a car loan, and a home mortgage.
What is a liability debt?