Who Wants to Be a Financial Planner?
This is the gold standard certification in financial planning.
What is Certified Financial Planner (CFP)?
This is the time between your statement date and due date when you can pay without interest.
What is a Grace Period?
These are the two common methods for repaying debt.
What are the avalanche and snowball methods?
This is the minimum down payment needed to avoid PMI.
What is 20%?
This is the first step in the personal financial planning process where the planner and client define roles.
What is establishing and defining the client-planner relationship?
This type of planner is a CPA with specialized training in personal financial planning.
What is a Personal Financial Specialist (PFS)?
This strategy improves your credit utilization before reporting to credit bureaus.
What is paying before the statement date?
This fund, typically 3–6 months of expenses, is designed to cover unexpected expenses and loss of income.
What is an emergency fund?
This ratio compares total housing costs to gross monthly income.
What is the PITI ratio?
This type of bias occurs when people seek out information that supports their pre-existing beliefs.
What is confirmation bias?
This certification focuses on investment analysis and requires passing three exams.
What is a Chartered Financial Analyst (CFA)?
Credit history, utilization, credit mix, new credit and "blank" make up your credit score.
What is the length of credit history?
This ratio compares monthly debt payments to gross monthly income and should usually be below 45%.
What is the debt-to-income ratio?
These four components make up the numerator of the PITI ratio.
What are principal, interest, taxes, and insurance?
This financial ratio measures how much of your gross income is allocated to savings.
What is the savings ratio?
This planner is a licensed broker who earns commissions from product sales.
What is a Registered Representative?
This is the maximum amount you can charge on your credit card without incurring a penalty or decline.
What is the credit limit?
The member’s evaluation of progress toward achieving the client’s PFP goals is part of this type of engagement.
What is a monitoring engagement?
To qualify for the IRS capital gains exclusion, a homeowner must have lived in their home this long.
What is at least 2 out of the last 5 years before the sale?
This type of mortgage has an interest rate that may change after an initial fixed period.
What is an adjustable-rate mortgage (ARM)?
This advisor must register with the SEC or state if they manage investment assets.
What is an Investment Advisor?
These types of credit checks by lenders may affect your credit score for up to two years.
What are hard inquiries?
This financial document is like a personal balance sheet showing net worth.
What is a personal statement of financial position?
This fee, typically paid at loan closing, covers underwriting and processing the mortgage.
Answer: What is an origination fee?
This type of loan is backed by the federal government and helps low-to-moderate income homebuyers.
What is an FHA loan?