Living On Your Own
Living on your own can be __________________?
What is expensive.
Many people, while being mistaken, believe this is an absolute must to rent an apartment.
What is a credit score.
This is the most significant factor in the price of rent.
What is location.
This building block is known as "Get out and stay out of debt."
What is the Second Foundation.
Refers to an interest rate that's locked in and won't change for the life of the loan.
What is fixed-rate.
Rent should be no more than _______ of your monthly take-home pay.
What is 25%
If someone is debt free this is a great option.
What is buying a property.
Things that provide convenience, comfort, or enjoyment in life.
What are amenities.
A loan obtained for the purchase of a home.
What is a mortgage.
Have interest rates that can fluctuate from year to year.
What is ARM's or Adjustable Rate Mortgage.
Living in a property not owned by you will require this protection.
What is renter's insurance.
This range is acceptable for the down payment amount for a house purchase.
What is 10-20%
An agreement made between two or more parties that is enforced by law.
What is legal contract.
A lump sum of money, usually a percentage of the total price of that home, paid by the buyer at the time of purchase.
What is down payment.
Backed by the Federal Housing Administration, very popular, with little or no down payment
What is FHA loan.
This refers to the average cost of the basic goods and services needed to sustain a certain standard of living.
What is cost of living.
Periodic payments by a tenant to a landlord in return for the use of property.
What is renting.
This clause is the portion of a legal contract signed by both parties.
What is the acknowledgment clause.
The unabbreviated term for the insurance that protects lenders against loss if the borrower defaults on the loan.
Private Mortgage Insurance
Must have 20% or greater down payment to avoid PMI.
What is conventional loan.
This is the level of wealth, comfort material goods, and necessities available to a group of people.
What is standard of living.
The amount borrowed to purchase a home which has to be paid back. (2 word answer/vocab)
What is mortgage principal.
A legal contract that allows the renter, or lessee, rights to the use of the property owned or managed by the lessor for a period of time.
What is leasing contract.
Ramsey recommended length, type of mortgage, and payment amount for a home purchase.
Are only available for active or former military members.
VA loans or Veteran's Administration.