Financial Fitness
What is a credit score?
A number representing creditworthiness
What is principal?
The original loan amount
What is a “fixer-upper”?
A home needing significant repairs
What is title insurance?
Protects against future ownership disputes
What is mortgage protection life insurance designed to do?
Pay off the mortgage if the homeowner passes away
What is a credit mix?
Variety of credit types you use
What is interest?
The cost of borrowing money
What does “as-is” mean in a listing?
Seller won’t make repairs
What is a title search?
A check of public records for ownership issues
What does 'return of premium' mean in a life insurance policy?
You may get a refund of premiums if the policy is not used within a certain period
What is length of credit history?
How long you’ve had credit accounts
What does an escrow account do?
Holds funds for taxes and insurance
Why is an inspection contingency important?
Lets buyer cancel if major issues arise
Why is a clean title important?
Ensures no liens or disputes
What life insurance feature allows access to funds for emergencies or investments?
Cash value or tax-free borrowing
What is utilization rate?
% of available credit you’re using
What happens if you miss a mortgage payment?
You may incur fees or hurt your credit
What’s one red flag in a listing?
Mold, water damage, foundation issues
What is a lien?
A legal claim against property for debt
What is the average cost of long-term care in Florida?
$117,000
T or F: Adding an authorized user will affect your credit score
False, as long as you don't give the credit card to the authorized user.
What’s mortgage amortization?
Paying off a loan over time with scheduled payments
What’s the benefit of getting pre-approved?
Shows sellers you’re a serious buyer
Who handles the title transfer?
A title or escrow company
What percentage of people will need long-term care in their lifetime?
72%