Mortgage Math
What percentage of a $200,000 home is a $10,000 down payment?
5%
What’s the minimum credit score to aim for when buying a house?
620
What is equity?
The difference between what you owe and what your home is worth
What is a budget?
A plan for managing income and expenses
What is an FHA loan?
A government-insured loan with low down payment
Erica saved $20,000, which is 5% of her goal. What is the price of the home she can afford?
$400,000
Which factor most impacts your credit score?
Payment history
What is a deed?
A legal document transferring property ownership
What is an emergency fund for?
To cover unexpected expenses
What is a VA loan?
A loan for veterans, service members, and surviving spouses
What’s the monthly payment on a $1,200 insurance policy?
$100
What is a good credit utilization rate?
Under 30%
What is escrow?
A third-party account holding funds until conditions are met
What is a savings goal?
A specific amount saved for a purpose and time frame
What is a USDA loan?
A zero-down loan for eligible rural buyers
If your loan is $250,000 and your home is worth $300,000, what’s your LTV?
83%
How many years of your career do you need to qualify for a mortgage?
At least 2
What does title mean?
Legal ownership of property
What is automatic savings?
Money transferred regularly into a savings account
What is a conventional loan?
A non-government-backed mortgage
You borrow $180,000 and pay $20,000 in interest over the loan. What's the total repayment?
$200,000
T or F: Rent payments can be used to increase credit score
True. Use companies like Rental Kharma and Rent Reporters to report rent payments to credit bureaus
What’s a contingency?
A condition that must be met for the sale to proceed
What is interest?
Money earned or paid for borrowing or saving
What does DPA stand for?
Down Payment Assistance