Pay Now, Panic Later
Keeping your utilization rate below 30% is a strategy to improve this
What is credit score?
Monthly Debt Payment divided by Gross Monthly Income
What is Debt-to-Income Ratio?
Individuals may refinance their student debt in order to receive __ interest rates.
What is lower?
Offered by the AICPA and is an “add on” certification for CPAs
What is a Personal Financial Specialist (PFS)?
This ratio is generally capped at around 45% for conventional mortgage approval
What is the Debt-to-Income Ratio?
This range is considered to be an exceptional credit score
What is 800-850?
Money set aside that can cover 3-6 months of expenses
What is an Emergency Fund?
Method where you pay off your debts from smallest balance to largest balance regardless of interest rates
What is the Debt Snowball Method?
Also known as a stockbroker, is a salesperson working for a broker-dealer.
What is a Registered Representative?
This minimum credit score is typically required to qualify for a conventional mortgage loan
What is a 620 FICO Score?
Makes up 30% of a FICO Credit Score
What is Utilization/Amounts Owed?
Projects annual income and expenses
What is a Spending Plan?
Method where you pay off your debts from highest interest rate to lowest interest rate regardless of balance
What is the Debt Avalanche Method?
These financial planners are in the business of providing advice about securities (but not usually other types of investments) to their clients.
What is an Investment Advisor?
This account is established at closing and used to accumulate funds for property taxes and homeowners insurance, which are paid on the borrowers behalf
What is an escrow account?
New credit inquiries are attributed to __% of a FICO credit score
What is 10%?
Snapshot of financial condition at a given moment in time
What is Personal Statement of Financial Position?
This Debt Payoff Method will generally result in less total interest.
What is the Avalanche Method?
The certification that is generally considered the “gold standard”.
What is a Certified Financial Planner (CFP)?
This fee, paid up front to the lender is essentially prepaid interest used to reduce the borrowers interest rate
What are points?
The period between the end of the Statement Period and the Payment Due Date
What is the Grace Period?
This rule breaks up your income into Needs, Wants, and Savings
What is the 50/30/20 rule?
This strategy allows borrowers to move high-interest credit card debt to a new card with a low or 0% introductory APR, but requires discipline to avoid feeds and new debt accumulation
What is a balance transfer strategy?
To gain this certification, advisors must meet significant education and work experience requirements, pass a series of three exams, and they have expertise in investment analysis and portfolio management.
What is a Chartered Financial Analyst (CFA)?
Due to changes under TCJA, this must be exceeded before mortgage interest provides any tax benefit for many homeowners
What is the standard deduction?