Buying a House
What type of interest rate won't change for the entire time of the loan?
Fixed-rate loan
What is some of the information you can expect the find on a credit report?
Open accounts, closed accounts, late payments
What is the form you receive from your employer?
W-4 form
What is a premium?
The money paid to pay for the insurance policy
What is 50/30/20 budgeting?
Dividing your money into three primary categories on your after-tax income: 50% needs, 30% wants, 20% savings/debt
What type of loan is not secured by the government and usually has the best rate and term?
Equifax, Experian, and TransUnion
What form do you use to file a tax return with the IRS?
Form 1040
What is a deductible?
The out-of-pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss
What is pay yourself first budgeting?
Prioritizes savings goals and allocating a portion of your income to savings and investments
How many days does the home-buying process take?
197-257 days
How long will a missed/late payment show up on a credit report?
7-10 years
What type of tax system do we have in the United States?
A progressive tax system
Who can provide health insurance?
Individual, employer or government
What is the rule of 72?
A quick way to estimate how long it will take for an investment to double in value
What is a home appraisal?
A professional assessment of a property's fair market value
Why is it important to review your credit report annually?
To make sure there are no errors or fraud
What is a marginal rate?
Marginal rate is based on your total income and determines what tax bracket you are in
The car you are driving causes an accident that injures someone else...what insurance should you have?
Liability insurance
How much should you have in your emergency fund?
3-6 months worth of expenses
What does closing on a home entail?
Closing a home involves finalizing the mortgage, signing the final documents, and transferring ownership
What could have a negative impact on your credit score?
Applying for multiple credit cards in a short amount of time, missing payments, making late payments
What is a dependent?
Someone who relies on someone else to provide more than half of their financial support
What is co-insurance?
Requires that insured individual to pay a fixed percentage or amount of the loss after the deductible has been paid
What is debt consolidating?
Debt consolidation means combining all of your debts into one loan with a lower interest rate