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MFLD MOD5
Module 5 Transportation & Housing
Term | Definition |
---|---|
Base price | the basic starting price before additional features are added. |
Closing costs | the amounts charged to a consumer when they are transferring ownership or borrowing against a property. Closing costs include lender, title and escrow fees and usually range from 3-6% of the purchase price. |
Collateral | something used to secure a loan; usually an automobile or real property. |
Comparison shopping | choosing a purchase by comparing different choices against a set of criteria. |
Consumer protections laws | laws designed to provide consumers with certain rights and prevent sellers from engaging in certain types of behavior before, during, and after a transaction. |
Dealership | a company specializing in the sale of automobiles. |
Deed | a legal document conferring ownership of property. |
Depreciation | a decline in the value of a real asset. |
Disclosure statement | a statement which indicates any defect or deficiency prior to a sale. |
Equity | The fair market value of a home minus the unpaid mortgage principal and liens. You build up equity in a home as you pay down your mortgage and as the property value increases. Also called the lendable value or net value. |
Escrow | an account where funds are held for a specified period of time. |
Eviction | forced removal from a residence or property. |
Fixed Expenses | expenses one pays regardless of rate of usage. |
Flexible expenses | expenses that wary with usage rates. |
Fuel economy | the relative rates of expense associated with fuel consumption. Kelly Blue Book-a publication which researches used auto prices and suggests appropriate prices based on amenities, location, and condition. |
Landlord | the owner of a rental property. |
Lease agreement | an agreement by a tenant to occupy a rental property for a specific amount of time in exchange for rent. |
MSRP | manufacturer’s suggested retail price. |
No-lease agreement | a month-to-month exchange of rent for the right to occupy property. |
PMI | private mortgage insurance, or a payment to protect against default when down payment amounts fall below a prescribed level. |
Property manager | one who manages a rental property, but doesn’t necessarily own it. |
Renters insurance | owned to protect yourself from financial loss due to theft or damage to your belongings inside of a rental property. |
Retail price | price initially charged by business or dealer. |
Security deposit | money paid up-front in a rental agreement to protect property owner against damage and loss. |
Sticker price | price on the sales sticker; retail. |
Subleasing | the process by which the tenant of a property rents the location to another party. |
Tax deduction | the removal of a portion of total taxable income. |
Tenant | one who rents a property. |
Title insurance | a guarantee against previous encumbrances and claims on a real property. |
Title | document which confers ownership of an asset. |
Trade-in value | the value one can expect to receive from a dealer when exchanging a vehicle during a purchase. |
Verbal contracts | an oral agreement to carry out a transaction; can be binding. |