Loans #1
What is a loan?
Money borrowed from someone (usually a bank) that typically ha an interest rate tied to it.
What is a fixed interest rate?
An interest rate that is permanent and "locked" in. It will not change during the loan term.
What is a mortgage?
A loan specifically used to purchase real estate.
What is your mortgage secured/backed by?
The property itself serves as collateral for the loan, meaning if the borrower fails to repay the loan, the lender can take possession of the property through foreclosure.
Who won the first Super Bowl?
Green Bay Packers
What is a secured loan?
A loan that is backed by something. (Like a mortgage)
What is an unsecured loan?
A loan that has no backing. (Like a credit card)
Define an Escrow Account
An account where funds are held to cover property taxes and insurance premiums.
Define a downpayment
The initial payment made by the buyer, usually a percentage of the purchase price.
What year was the NFL founded?
1920
Define Loan Term
The length (life) of a loan.
What is a variable interest rate and name something that has a variable interest rate?
Your interest rate will change, meaning it is not always the same.
Example: Credit Card, ARM Mortgage, Etc.
Why do people refinance their mortgages?
To get a better interest rate.
In the case of divorce to get someone's name off the mortgage.
What is the most common type of mortgage?
Fixed-Rate Mortgage
Which NFL teams are named after a bird?
Atlanta Falcons
Philadelphia Eagles
Seattle Seahawks
Baltimore Ravens
Arizona Cardinals
How does a loan impact your monthly and/or yearly budget?
A loan will typically result in a set amount that you are liable to pay each month, such as student loans, meaning that you will need to build that payment into your budget.
Define Revolving Credit
It allows borrowers to access funds up to a certain limit, repay the borrowed amounts, and the borrow again without needing to reapply for a new loan.
Why are FHA Loans beneficial?
These loans often require lower down payments and have more flexible qualification requirements.
Name two responsibilities that come with buying a house/getting a mortgage.
Monthly Mortgage Payments
Property Maintenance
HOA Dues
Monthly Utilities Payments
How many different states have an NFL franchise?
23 States
How can loans help someone build wealth?
Loans can be used strategically to invest in assets such as education, homes, or businesses, which can potentially increase wealth over time.
What risks come with taking out a loan?
Loans come with various risks, including interest rate fluctuations, economic downturns, and unexpected life events
Name two factors that affect your mortgage and mortgage rate
Credit Score
Loan to Value Ratio
Debt to Income Ratio
Economic Conditions
What is the Mortgage Process?
Pre-Approval
Application
Underwriting
Closing
Who is the NFL's all time leading scorer?
Adam Vinatieri with 2,673 points scored all time