Buying a house
Unlike cars, real estate is a ___ asset
appreciating asset
Cars, unlike real estate, stocks, and savings accounts, are a ____ asset
Depreciating asset
This type of insurance covers damage to your house and other structures from disasters like fire or wind.
Homeowners Insurance
The amount you must pay out of pocket when using the insurance before the insurance steps in.
Deductible
This type of loan of principal (repaying the loan amount) and interest (the cost to borrow)
Amortized mortgage
This type of arrangement often requires lower monthly payments but has mileage restrictions.
Leasing a car
These types of damages that a house insurance would pay for
Home burns down
Pipe bursts
A fixed amount that you pay when using medical services.
Copayment
A report card of how you've used money in the past. It shows if you've paid your bills on time or if you've had any big money problems
Credit score
This is a mandatory coverage that pays for injury or property damage you caused to another person
Liability Coverage
The amount of money you pay out of your own pocket towards a covered claim before the insurer is required to pay.
Deductible
A fixed percentage of the cost of a medical service that you must pay after you paid your deductible.
20% (your insurance will typically pay 80%)
This is the upfront down payment amount (in percentage) that lenders typically require for you to pay to secure a mortgage
20%
While this shorter repayment option reduces total interest paid, it often results in a higher monthly payment.
Shorter loan term
True or false: House insurance will cover your damages due to floods and earthquakes
False
When thinking about low/high premium and deductible, Suitable if you are generally healthy and want lower monthly costs
Low Premium / High Deductible
This is the maximum percentage of gross income that banks generally recommend spending on housing costs.
30%?
What are one of the optional car insurances you can add?
Comprehensive Coverage, Uninsured/Underinsured Motorist (property damage), Collision Coverage, Roadside assistance
True or false: Home insurance typically replaces or repairs these personal belongings (furniture, clothing, electronics) damaged by covered perils like fire, wind, hail, theft, or vandalism
True
When thinking about low/high premium and deductible, this is a suitable if you expect frequent doctor visits or need regular prescriptions