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Finance 6.07
Major Expenditures Vocabulary
Term | Definition |
---|---|
Closing costs | Fees and charges associated with the purchase of a property. |
Depreciation | Decrease in the value of an asset associated with the decline in its remaining useful life. |
Down payment | Portion of the purchase price that is not borrowed. |
Equity | monetary value of a property minus the amount owed on the property. |
Homeowner's Association dues | Monthly or yearly fees that pay for the maintenance of shared areas and necessary repairs throughout the community. |
Homeowners insurance | Covers damage or loss of the structure and contents, plus liability in case others are injured on the property. |
Landlord | The person who owns the property. |
Leasing | Renting a product while ownership title remains with the lease grantor. |
Mortgage insurance | Protects the lender in case a mortgage loan payment cannot be made and the lender has to take the property back through a process known as foreclosure (also known as private mortgage insurance.) |
Mortgage | A loan for the purchase or real estate. |
Real estate agent | Licensed individual representing a buyer or seller in a contractual transaction to purchase real property |
Rental agreement | A contract specifying the tenant's and landlord's legal responsibilities. |