Loans and Mortgages
What is it called when a borrower fails to meet the terms of a loan?
What is a FICO score used for?
What is to measure creditworthiness
What is the term that refers to Financial assets used to invest or build wealth
What is capital
What is the purpose of a savings account?
Store money safely while earning interest
What is the difference between gross and net income?q
What is gross = before taxes and deductions, what is net = after taxes and deductions
A mortgage rate that changes over time is known as
What is an ARM (adjustable-rate mortgage)
What does a higher FICO score indicate?
what is Better credit
A profit made when selling an asset for more than you originally paid is known as
What is Capital Gains
A timed savings product with a fixed rate and restricted access until maturity is known as what type of savings account?
What is a CD (certificate of deposit)
What is garnishment?
What is A court-ordered withholding of part of someone’s paycheck to pay a debt
What type of mortgage keeps the same rate and monthly payment for the entire term?
What is fixed-rate
What is the range of FICO scores?
What is 300-850
Spreading investments across assets to reduce risk is known as
What is diversification
What is escrow used for?
To safely hold funds during a real estate transaction (think of it like an account to hold funds to pay insurance and property taxes)
What is the purpose of a W-4 form?
What is Lets employers know how much tax to withhold
What is amortization?
A loan paid back in fixed payments of principal and interest over time.
What is a credit report?
What is a document used to show an individual's credit history
Interest earned on both the principal and previous interest is known as
What is compound interest
Distributing resources among assets to optimize returns or reduce risk is known as
What is allocation
Which form reports wages and taxes withheld to the IRS?
What is a W-2
What legal right allows a lender to claim a borrower’s property until a debt is paid?
What is lien
What does FICO stand for?
What is Fair Issac Coorporation
An investment that pools money from many people to buy diversified assets is known as
What is mutual fund
What is maturity?
The date when a financial instrument ends or comes due
What economic condition causes prices to rise over time?
What is inflation