click below
click below
Normal Size Small Size show me how
Chp 8 Study Guide
Money Matters Study Guide for Chapter 8 Test
Term | Definition |
---|---|
Roommate | A person with whom you share living space, living expenses, and other responsibilities |
Shared Responsibility | Two are more people who each agree to bear a portion of an obligation |
Living habits | Your daily routine, or the way you choose to live your life |
Security Deposit | A refundable amount paid to cover the damages to property caused by tenant |
Logistics | The act of making a plan and carrying it out to ensure that an event takes place |
Contract | A legally binding agreement that specifies that the rights and duties of each party to the agreement |
Consideration | Something of value exchanged for something else of value |
Lease | A written agreement that allows a tenant to use property for a set period of time at a set rent payment |
Rental Agreement | A written contract that allows you to leave any time as long as you give the required notice |
Eviction | The legal process of removing a tenant from rental property |
Property Manager | An off-site manager hired to take care of rental property |
Down Payment | A cash deposit toward the purchase price that is paid up front |
Trade-in | Something of value applies toward the down payment of a new purchase |
Pre Approved loan | A loan for which a maximum amount is established and approved in advance |
Refinancing | Paying off an existing loan with a new loan that usually has better terms |
Mortgage | A loan used to purchase real estate |
Rent-to-own agreement | A contract in which a portion of the renter’s monthly payment is applies toward the purchase price of the rented item |
Debt repayment plan | A strategy for paying off debt in a way that reduces the total interest paid |
Balloon payment | A large lump-sum payment that must be paid at a set time |
Prepayment penalty | A fee charged if you repay a loan before the agreed upon time |
Credit management | Establishing and following an individual plan for using credit wisely |
20/10 Rule | A plan to limit the use of credit to no more than 20 percent of your yearly take home pay, with payments of no more than 10 percent of monthly take home pay |
Unused credit | The remaining credit available to you on current accounts |
Predatory lending | Unfair, deceptive, and fraudulent loan practices |
Loan Shark | A person who offers illegal loans at very high interest rates and often uses intimidation to enforce repayment |
Easy access credit | Type of credit that can be obtained quickly and easily but that often comes with high or hidden costs |
Title loan | A short term loan with a high interest rate that uses the title on your vehicle as collateral |
Equity stripping | The unethical practice of extending a loan to a distressed homeowner who cannot afford the loan payment, resulting in the lender taking possession of the home |
Payday loan | A cash advance from your next paycheck |
Advanced-fee loan | A type of loan that includes a large fee upfront |
the 20/10 Rule | A plan to limit the use of credit to no more than 20% of your yearly take-home pay, with payments of no more than 10 % of monthly takehome pay. Mortgages or other monthly payments for housing are not included in the 20/10 Rule limits |
How to calculate the total amount of closing costs | The sum of all closing costs |
An advantage of leasing rather than buying a car is | that a monthly lease payment is typically less than a monthly car loan payment. |
20 percent of yearly take-home pay | A rule of thumb for determining if you have an acceptable amount of installment loan debt states that it should not exceed |
30-day notice | When tenants decide to move out voluntarily, they generally must give a |
Rights of a landlord | to receive rent in a timely manner, to retain security deposits for damages caused by the tenant, and to hire a property manager |
The right of first refusal | When a rental agreement contains a purchase option at the end of the rental term, the renter is said to have |
advance-fee loan | A loan type that is often related to a loan scam |
upside down | When you owe more on a car than it is worth, the loan is said to be |
Downpayment | The amount of money that must be paid when the mortgage company will only a specified value of the home. The financed amount minus the loan amount is the required |
payday loan company | types of lenders generally extends legal high-interest loans to consumers who may be ineligible for conventional, lower-interest loans |
holes in the walls | a justifiable reason for not refunding a tenant’s security deposit |