Housing Vocabulary
Typical down payment on a house.
What is 20%.
Backs up the Loan
Collateral
1st Step.
What is SAVE for DOWN PAYMENT
goods
something that you buy. An actual product that you can touch, feel, and use.
The value of your home goes up. Historical average is 1.5% a year after inflation.
What is APPRECIATION or Building EQUITY
Typically a fixed rate loan for 30 years.
What is a CONVENTIONAL LOAN/FIXED RATE
4th Step.
What is OBTAIN FINANCING.
Services
When someone does something for you that does not result in a product in hand. Ex. Landscaper cutting your grass.
The fees associated with finalizing the sale of a house.
What are closing costs?
True or false: a smaller down payment will reduce the amount of the mortgage needed.
What is false?
True or false: Conventional mortgages usually have a rate that changes as market interest rates change.
Last Step.
What is Move In!
Bargain
A deal struck between to businesses or a person dealing with the transfer of goods or services.
Taking out another mortgage on your home. (What is it called?)
What is called TAKING OUT A SECOND.Home Equity Loan or Line of Credit.
Your interest rate will fluctuate throughout the term of your mortgage loan.
What is a ARM/Adjustable Rate Mortgage
2nd Step.
What is CHECK YOUR CREDIT SCORE
Risk
A chance. Usually taken when investing money or purchasing an asset.
A Good Faith Down Payment
Ernest Money
The down payment you should have for a $100,000 house.
What is $20,000?
The total cost of a house you can afford to take out a mortgage on if you have a $35,000 down payment saved up.
What is $175,000?
5th Step
What is Find a House
Cash Flow
Liquid money. Money you have on hand right now.