Debt
When this form of payment is stolen, you're usually liable for no more than $50.
What is a credit card?
This is considered a perfect credit score in the United States.
What is 850?
Expenses like eating out, going to the movies, or buying comic books, not things you need like rent or groceries.
What are discretionary expenses?
They sound like your chill aunt and uncle, but these two entities buy mortgages so lenders can keep issuing new loans.
What are Fannie Mae and Freddie Mac?
This 2017 legislation did not season your food, but it did limit the SALT deduction at $10,000.
What is the Tax Cuts and Jobs Act (TCJA)?
This is the fee to cover the cost of making a loan.
What is an origination fee?
The biggest piece of the pie when it comes to your FICO credit score.
What is payment history?
This four-letter acronym represents the key components of a monthly mortgage payment: Principal, Interest, Taxes, and Insurance.
What is PITI?
This fee lets you check out the house before you buy it. If you choose to back out, tough luck! The seller keeps your bag $$$.
What is a due diligence fee?
In PFP language, this is an individual’s assets minus liabilities.
What is net worth?
According to the Wall Street Journal, refinancing this type of debt with a private lender can reduce your interest payments, but you will give up federal protections like loan forgiveness.
What are student loans?
If this is 0% on your statement date, it's bad. If it’s over 30%, that’s also bad.
What is utilization?
If you’re single, aim for six months; if you’re married, three. This financial cushion can save you in a crisis.
What is an emergency fund?
Put down less than 20% on a house, and this extra cost protects your lender—just in case.
What is Private Mortgage Insurance (PMI?)
In gaming, you collect these to level up, but in mortgages, you buy them to lower your interest rate.
What are points?
This debt payoff strategy tackles balances with the highest interest rates first.
What is the avalanche method?
They are not the card-holder, but by freeloading on someone else's credit account they begin building their own credit score.
What is an authorized user?
This popular budgeting guideline splits your income into …% for needs, …% for wants, and …% for savings.
What is the 50/30/20 rule?
This special account holds money for things like property taxes and insurance to make sure the lender gets paid on time.
What is escrow?
This corporation is coined with inventing the widely used FICO credit score to assess your creditworthiness.
What is the Fair Isaac Corporation?
Though it shares its name with a term meaning "dead pledge" in old French, this long-term loan lets you own a piece of the American dream.
What is a mortgage?
This act guarantees that credit card holders will have at least 21 days to pay their balance in full without incurring interest charges.
This financial planner certification is the most rigorous and prestigious.
What is a Certified Financial Planner (CFP)?
In this method of tax avoidance, the gain from the sale of a primary residence is excluded if you lived in the home for an aggregate time period of two out of five years immediately preceding the sale of the home.
What is the two-out-of-five rule?
This American Idol judge needs to stop overspending on his kids’ college, sell the house, and get serious about retirement savings.
Who is Randy Jackson?