Week 14 Personal Finance

How much of a down payment will you be expected to put down toward the appraised value of the home you plan to purchase?

10-20%

Garbage disposal

100-400

if you put less than _____ down you will be required to carry Private Mortgage Insurance (PMI) until you have paid down your mortgage principle to a suitable balance.

20%

Hot water heater

250-1500

Dishwasher

300-1000

HVAC (Heating and air conditioning)

3000-15000

Washer or dryer

400-1200

Refrigerator

600-3000

Before considering buying a house, you should make sure you are in sound financial shape. Choose from the list below some of the things you should do in order to be prepared to purchase a house.

Shop for interest rates that are available and identify any necessary pre-qualifications, Look into special financing for first-time home buyers and explore federally subsidized loans, Be aware of your credit rating and take steps to improve it

According to Ron Blue, the best type of mortgage to get is:

The shortest one with the lowest interest rate

Chapter 13 Bankruptcy

This allows people that have a steady income to keep some property such as a car and home. The court approves a repayment plan that allows the use of future income to pay off debts.

Chapter 7 Bankruptcy

This is known as straight bankruptcy and involves liquidating all assets that are not exempt. Anyone filing for this kind of bankruptcy must satisfy a "means test" that investigates their income closely.

When shopping for a house, there are tips you can use to help your effort be more successful. Choose all of the tips below that are effective in making your search for a new home an easier process.

Use online mortgage calculators and amortization schedules to help you with working out possible payments, Give the real estate agent a detailed list of what you want in a house (number of bedrooms, baths, levels, yard, and other specifics), Look for houses in your price range and budget, Think about the future, including both the needs of your family and possible income increases, Decide on areas where you would like to live and visit these at different times of day to observe traffic patterns and other factors, Choose a good real estate agent.

If personal debt gets out of hand and something needs to be done, what is one of the best sources you can go to for help?

a reputable credit counseling organization

Secured debts are usually connected to some sort of ___________________.

asset like car or home

Creditors that need to collect on debts have certain rights, but they cannot harass you or violate your rights. Select all actions that creditors cannot do when trying to collect a debt.

call you after 9:00 p.m, use any unfair practices such as lying, call you at work if your employer doesn't approve, call you before 8:00 a.m, harass you

In the video by Ron Blue, he advises individuals to do the following if they are in a financial crisis situation:

cut back on expenses to the bare minimum, use cash to pay off debt, make a budget

The cost of utilities is often included in the price when you purchase your home.

false

Both kinds of bankruptcy may help stop procedures related to _____________________.

foreclosures, utility shut-offs, garnishments, repossessions

HOA fees cover which of the following?

garbage, insurance, maintenance, sewer, landscaping, water

When should you contact your creditors if you are having any problems meeting your debts?

immediately

In order to begin managing your debt, it is important to start with a manageable budget. What are the things most financial advisors consider essential for daily living? Choose all applicable answers.

insurance, food, housing, health care, education

Bankruptcy is an option for those deep in debt. Consequences can be _____________ . The court grants a _____________e that exempts those filing for bankruptcy from paying certain debts. A bankruptcy filing can stay on your credit report for _____________ and can have a negative impact _____________ .

long-lasting and far-reaching, discharge, ten years, when you apply for other credit or getting a job

Unsecured debts are debts that are not tied to any collateral or major personal property that can be repossessed or processed for foreclosure. Choose all below that fall into this category.

medical bill, personal signature loans, credit card debt, store credit accounts

One way to manage debt that is out of control is by considering a debt consolidation loan. These types of loans can be a ___________ or a home equity line of credit . Although these may help with high debt, they also require some sort of ___________ that could be ___________ if you are unable to make your payments. In addition to interest, you may be required to pay ___________ , the cost of which is based on the amount you borrow and is added to the cost of your loan. Unlike other loans, these types of loans usually provide some ___________.

second mortgage, home equity line of credit, collateral, repossessed, points, tax advantages

Choose all items listed that are potential costs associated with owning a home.

utilities such as electricity, gas, water, cable, and others, property taxes -- either paid yearly or assessed through escrow payments, HOA fees, garbage collection fees, and landscaping fees, hazard insurance and/or PMI (Private Mortgage Insurance), maintenance and repairs not covered in the closing settlement