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| is how you spend your Time & Money. It may seem intangible, it materializes in consumer purchases. |
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| is the primary motivator of renters |
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-Annual Rent Payments
-Renters Insurance
-Intrest lost on Security Deposit |
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* Easy to Move
* Fewer Responsibilities for Maintenance.
* Minimal Financial Commitment |
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| A legal document that defines the conditions of a rental agreement. |
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| allows you to have another person take over rent payments and live in the rental unit. |
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| is frequetly required when you sign a lease, is usually one months rent. This money is held by the Landlord to cover the cost of any damages. |
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| The Five Phases of Home Buying Process |
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Definition
-Determine Home Ownership Needs
-Find and Evaluate a Property to Purchase.
-Price the Property
-Obtain Financing
-Close the Purchase Transaction |
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| Stability of residence and a personalized living location are important motives of many home buyers. |
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*Types Of Homes*
Single Family Dwellings |
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| includes previously owned houses, new houses, and custom-built homes. |
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| with more than one living unit. |
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| a building with seprate homes. |
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| may contain two,four,or six living units. |
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owned housing units in a building.
doesn't include common areas ie(hallways, outside grounds, and recreational facilities) |
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| A form of housing in which a building containing a number of housing units is owned by a nonprofit organization whose members rent the units. *Shareholders purchase stock to obtain the right to live in a unit in the building.you dont own the unit however you have the legal right to occupy a unit for as long as they own stock in the cooperative association. |
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| are assembled in a factory and then moved to the living site. |
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| componets built in a factory and then assembled at the housing site. |
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| smaller than 1,000 square ft, can offer features such as a fully equipped kitchen, fireplace, cathedral ceiling& whirlpool bath. Can be purchased or leased. |
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| be sure you posses the necessary knowledge, money and perseverance. consider (1)contractors experience and reputation;(2) contractor relationship with arvhitect, materials suppliers, electricians, plumbers, carpenters, and other personnel(3) payment arrangements during construction. |
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| is considered the most important factor when buying a home. |
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| restriction on how the property in an area can be used. |
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Services include:
-showing you homes to meet your needs
-Presenting your offer to the seller based on a market analysis
-negotiation a settlement price
-assisting you in obtaining financing
-representing you at the closing
-may recommend lawyers, insurance agents, home inspectors, and mortgage companies to serve your needs. |
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| working for both the buyer and the seller. |
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| assessment of the market value of the property. |
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| is an offer or contract which is your legal offer to purchase the home. |
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| from the owner of the home indicates a willingness to negotiate a price. |
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| is a portion of the purchase price deposited as evidence of good faith. |
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| stating agreement is binding only if a certain event occurs. (ie) if the buyer obtains financing for the home pruchase within a certain time period, or may make the pruchase of a home contingent on the sale of the buyers current home. |
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| PMI (Private Mortage Insurance) |
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Definition
| usually required is the down payment is less than 20%. This protects the lender from financial loss due to defualt. After Buliding up 20% equity in a home, a home buyer should contact the lender to cancel the PMI. *HPA* that the PMI policy be terminated automatically when a homeoener equity reaches 22% of the property value at the time the mortgage was ececuted. |
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| is long-term loan on a specific piece of property such as a home or other real estate. Payments on a mortagage are usually made over 10, 15, 20, 25 or 30 years. |
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| Prepaid intrest charged by the Lender. |
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| is equal to 1% of the loan amount and should be viewed as a premium you pay for obtaining a lower mortgage rate. |
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| usually has equal payments of 15,20, or 30 years based on a fixed interest rate. |
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| the balance owed is reduced with each payment. |
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| allows a home buyer to continue with the sellers original agreement. Were especially attractive if the mortagage rate was lower than market interest rates at the time of the sale. |
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| Federal Housing Authority (FHA) |
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Definition
| a person must meet certain conditions related to the down payment and fees. * Most Low-and middle- income people can qualify for the FHA loan program. |
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| Veterans Administration(VA) |
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Definition
| assist eligible armed services veterans with home purchases. VA loans can be obtained without a down payment. |
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Adjustable-Rate Mortgage(ARM) AKA
Flexible-Rate/Variable Rate mortgage |
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Definition
| has an intrest rate that increases or decreases during the life of the loan. usually have a lower initial intrest rate than fixed-rate mortgages; however the borrower not the lender bears the risk of future interest rate increases. |
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| restricts the amount by which the intrest rate can increase or decrease during and ARM term. |
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| keeps the payments on an ARM aat a given level or limits the amount to which those payments can rise. |
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| means the amount of the home equity is decreaseing instead of increasing. |
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| allows the home buyer to change an ajustable-rate mortgage to a fixed-rate mortgage during a certain period. |
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| Growing-Equity Mortgage(GEM) |
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Definition
| provides for increases in payments that allow the amount owed to be paid off more quickly. |
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Definition
| allows the homebuyer to have lower payments for the first few years of the loan. Once that period ends the mortagage adjust to be interest only at the new payment rate. * Higher payments will occur later in the loan. |
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| is an intrest rate subsidy from a home builder, a real estate developer, or the borrower that reduces the mortgage payments during the first few years of the loan. After the buy-down period the mortgage payments increase to the level that would have existed without the financial assistance. |
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| Shared appreciation Mortgage (SAM) |
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Definition
| an arrangement in which the borrower agrees to share the increase value of the It provides the home buyer with a below-market intrest rate and lower payments than a conventional loan. |
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| Second Mortgage(home equity loan) |
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Definition
| allows the homeowner to borrow on the paid-up value of the property. |
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| Reverse Mortgages(home equity conversion mortgage) |
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| provides homeoweners who are 62 or older with tax-free income in the form of a loan that is paid back (with intrest)when the home is sold or the homeowner dies. |
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| this is to obtain a new mortgage on your current home at a lower intrest rate. |
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| are the fees and charges paid when a real estate transaction is completed; these commonly include the items listed. |
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| Insurance that, during the mortgage term protects the owner or the lender against financial loss resulting from future defects in the title and from other unforeseen property clains not excluded by the policy. |
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| A document that transfers ownership of property from one party to another. |
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| Money usually deposited with the lending financial institution for the payment of property taxes and homeowners insurance. |
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| ia an estimate of the current value of a property. |
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| Protection against possible financial loss. |
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| A risk-sharing firm that assumes financial responsibility for losses that may result form an insured risk. |
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| A written contract for insurance. |
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| A person who owns an insurance policy. |
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| the amount of money a policyholder is charged for an insurance policy. |
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| The protection provided by the terms of an inssurance policy. |
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| A person covered by an insurance policy. |
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| Chance or uncertainty of loss; also used to mean the "the insured" |
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| The cause of a possible loss. |
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| A factor that increases the likelihood of loss through some peril. |
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| involves loss of income or life due to illness, disability, old age, or unemployment. |
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| involves losses caused by negligence that leads to injury or property damage. |
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| Failure to take ordinary or reasonable care in a situation. |
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| are accidental and unitentional. |
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| is a risk that carries a chance of either loss or gain. |
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| is an organized plan for protecting yourself, your family, and your property.It is an long range process. |
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-Risk Avoidance
-Risk Reduction
-Risk Assumption
-Risk Shifting |
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| the set amount that the policyholder must pay per loss on an insurance policy. |
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| Creating a Personal Insurance Program |
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Definition
-Set Insurance goals
-Develop A plan to reach your goals
-Put Your Plan into action
-Check Your Results |
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| A request for payment to cover financial losses. |
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| Legal responsibility for the financial cost of another persons losses or injuries. |
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| is coverage for a place of residence and its associated financial risk. |
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| Home Owners Insurance covers your household belongings, such as furniture, appliances, and clothing, up to a portion of the insured value of the home. That portion is usually 55, 70, or 75%. Personal Property coverage typically limits the payoutfor the theft of certain items, such as 5,000 for jewelry. |
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| A list or other documentation of personal belongings with purchase dates and cost information |
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| Personal Property floater |
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| Additional property insurance to cover the damage of loss of a specific item of high value. |
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| Supplementary personal liability coverage; also called a personal catastrophe policy. |
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| An addition of coverage to a standard insurance policy. (FEMA) Federal Emergency Management Agency will give you additional information about this coverage. |
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| Renters Insurance(Broad form) |
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Definition
| covers your personal property against perils specified in the policy, such as fires and thefts. |
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| Renters Insurance(Comprehensive form) |
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| protects your personal against all perils not specifically excluded in the policy. |
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| Home Owners Insurance covers |
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Definition
-Credit Card fraud, check forgery, and counterfeit money.
-The coast of removing damaged property
-Emergency removal of property to protect it from damage.
-Temporary repairs after a loss to prevent further damage.
-Fire department charges in areas with such fees. |
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Definition
| A claim settlement method in which the insured receives payment based on the current replacement cost of a damaged or lost item, less depreciation. |
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| is the loss of value of an item as it gets older. |
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| A claim settlement method in which the insured receives the full cost of repairing or replacing a damaged or lost item. |
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| Selecting Home Ownwers Insurance Companys |
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Definition
-Can Save more than 30% by compareing rates.
-talk to both types of agents
-dont select company on the basis of price.
-consider service and coverages. |
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| Financial Responsibilty Law |
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Definition
| -State legistlation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident. |
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Definition
| is insurance that covers physical injuries caused by a vehicle accident for which you were responsible. *Coverage for the risk of financial loss due to legal expenses, medical cost, lost wages, and other expenses associated with injuries caused by an automobile accident for which the insured was responsible*. |
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| Uninsured motorist Protection |
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Definition
| Automobile insurance coverage for the cost of injuries to a person and members of his or her family caused by the driver with inadequate insurance of by a hit-and-run driver. |
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Bodily Injury Liability Numbers
100/300/50 |
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Definition
100,000 is the maximum amount that the insurance company will pay for the injuries of any one person in any one accident.
-300 si the maximum amount the company will pay all injured parties(two or more) in any accident.
-50,000 indicates the limit for payment fore damages to the property of others. |
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| Uninsured Motorist Coverage |
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Definition
| - protects you when another driver has some insurance,but not enought to pay for the injuries he or she caused. |
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| Automobile insurance that pays for damage to the insureds car when it is involved in an accident. |
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| Comprehensive Physical Damage |
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| covers your vehicle against risk such as fire, theft, falling objects, vandalism, hail, floods, tornadoes, earthquakes, and avalanches. |
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Definition
| Automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury cost form their own insurance companies. |
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| Towing/Emergency Road Side Service |
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| Pays for mechanical assistance in the event that your vehicle breaks down. |
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| Leagl Concerns (Libility Coverage) |
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| coverage of 100/300 is usually recommended. |
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| rating territory is the palace of residence used to determine your vehicle insurance premium. different locations have different cost. |
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| is based on age, sex, marital status, driving record, and driving habits. Driving record will also influence yuour insurance premiums. If you have accidents or receive tickets for traffic violations, your rates will increase. |
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Definition
| maintain a good driving record by avoid accidents and traffic tickets. taking a driver training program or maintaining good grades in college. Installing security devices, being a Non-smoker, insuring two or more vehicles with the same company |
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