Car Loans & Leasing
This unit of measurement is used by lenders to estimate your reliability when borrowing money
Credit Score
A person who helps people find homes that meet their criteria and guides them through the home buying process
Real Estate Agent
This is a mortgage that is not tied to the federal government meaning that the lender is usually a private mortgage lender such as a bank. Typically for people with high credit scores and little to no debt.
Conventional Mortgage
What is the recommended percentage of a major purchase that should be made as a down payment?
20%
What is a Fixed rate?
An unchanging rate charged on a liability, such as a loan or a mortgage.
This is the minimum Credit Score needed to buy a car
There is no minimum Credit Score
This is a list that home buyers make that describes what they want in their new house
List of Priorities
This mortgage has interest rates that change through out the life of the loan
Adjustable-Rate Mortgage
When making a major purchase, such as a car, what percentage of your income should the total cost of the car not exceed?
30%
True or False: Variable interest rates increase when interest rates rise?
True
When borrowing money to buy a car, this is the minimum credit score for the best rates on your loan
Credit Score 660 or above
Before buying a home, searching home owners should higher one of these to examine the property and check for any faults that could be used for negotiating the price.
Professional Home Inspector
This is the name for something used in a loan that can be seized by the lender if the borrower is not able to make their payments.
Collateral
What is the maximum percentage of your income that should be allocated towards a mortgage payment?
28%
What are two cons to Variable Interest Rates
Loan repayments increase when interest rates rise.
Loans may become more expensive than fixed rate loans should interest rates rise quickly.
Borrowers face greater risk if overcapitalized or already at repayment capacity.
Borrowers may not be able to plan or forecast future cash flow due to changing rates.
This is a type of loan payment where funds are programmed to be deducted from your account on a monthly date you choose.
Automatic Payment
This is the final step in buying a new house
Close on your new home
This type of home loan is often the best choice for borrowers who meet the U.S. Department of Agriculture's guidelines.
USDA Loan
True or False: When making a major purchase, it is advisable to borrow the remaining amount after making a 20% down payment.
True
What are two pros to Fixed Interest Rates
Provide more predictability
More attractive when interest rates are low
Easier to calculate long-term costs of borrowing
These are the 5 steps that describe the Leasing process
Do your research
Visit Dealers
Negotiate the terms of your lease
Compare Offers
Maintain the car throughout your lease
These are the first 3 steps in buying a new house
1. Assess your financial situation
2. Get pre-approved for a mortgage
3. Find a real estate agent
A type of conventional loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
Jumbo Loan
What are three examples of major purchases that often require borrowing money?
Houses, College Tuition, and Cars
This Interest rate is represented by a graph with the time on the x-axis, the interest rate on the y-axis, and a non-linear line with points that fluctuate in y-value.
Variable Interest Rate