H
What is one of the benefits of renting?
What is "Housing Ratio" also known as?
Front-End Ratio
What is "Debt-to-income Ratio" also known as?
Back-End Ratio
How do you calculate your gross income if you are paid weekly?
Example $400x52 (weeks)/ 12
The savings account you "join" to save money for a special reason like holidays or birthdays.
CLUB
Name the 4Cs of Credit
Capital, Capacity, Collateral, and Credit
What are some sources of income within your household that will make up your gross income? Name 3.
Retirement, Disability, Child Support, Social Security, Alimony, Business
Which one of the 4Cs of credit refers to the ability to repay the mortgage loan.
Capacity
What are the 4 main types of expenses?
Regular- Fixed, Regular- Variable, Irregular-Expected, Irregular-Unexpected
What is Number 1 in the Steps for Creating a Spending Plan?
Identify Goals and Values
What does the acronym PITI stand for?
Principal, Insurance, Taxes, Interest
How many years do you have to show a history of most income types to use for a mortgage loan/ determine affordability?
2 Years
Which step of the homebuying process is where you shop for the home with a realtor?
Step 6: Shop for a Home
Name 3 ways to maximize your income.
Sell unwanted items, Sell books on Amazon, Renting out an unused room, taking a part-time or full-time job, start a small business.
In "making adjustments" to your income, what are some things we can do?
Increase Income, Spend Less, do both
Who is the professional that gets hired to estimate the value of the property that you are showing interest in.
Appraiser
What does the S in the SMART acronym stand for?
Specific
What term is used for (the amount that the lender charges for lending money.
Interest
The tax credit that is available to low income individuals between 25 and 65 years old.
Earned Income Tax Credit (EITC)
What does HUD stand for?
The Department of Housing and Urban Development
List the first 3 Steps of the homebuying Process (in order)
Prepare for Homeownership, Determine How much You can Spend, Get Pre-Approved.
What is gross income?
Income before taxes
What is net income?
Income after taxes
Maintains a listing of financial counseling agency affiliates.
National Foundation for Credit Counseling
Which savings account earns a higher interest rate than a regular savings account (deposit has to be $500-$2500)
Money Market Account