Personal Finance: Unit 3 - Renting & Owning

Lease

A contract outlining the terms under which one party agrees to rent property owned by another party.

Insurance Claim

A formal request to an insurance company asking for a payment based on the terms of the insurance policy.

Mortgage

A loan to purchase a home or other real estate

Tenant

A person who occupies land or property rented from a landlord

Budget

A plan for how you will spend the money that you make or receive...

Property Tax

A tax on the value of a property; Taxes an owner pays on the value of any owned property, including land, buildings, or houses.

Utilities

A term used to reference electric, water, gas, and other services.

Renter's Insurance

A type of insurance that can protect you from damage or loss of your items in a rental property.

Homeowner's Insurance

A type of insurance that covers your home as well as your possessions inside it in case of damage or loss; Protects against most types of property losses and liabilities related to home ownership;

Lease Agreement

An agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.

Down Payment

An initial amount that is paid when something is bought using credit. Usually provided at the time of purchase particularly when purchasing larger items, like a house or car.

Where should you look to find your current expenses when building your budget?

Bank and Credit Statements

What is NOT a good way to prevent unnecessary spending?

Buy all of your wants at one time.

Closing Costs

Fees and charges associated with the purchase of a property

Which of the following should you consider when setting a budget?

Financial goals, Needs and Wants, and Savings

Lessor

Landlord

Expenses

Money spent

Security Deposit

Money that is given to a landlord of a home or apartment as a measure of security and can also be used to pay for damages caused by the renter.

Security Deposit

Money that is given to a landlord of a home or apartment as a measure of security and can also be used to pay for damages caused by the renter; money a renter lets an owner hold in case the rent is not paid or an apartment is damaged

Debt

Something such as money that is owed to a lender

Property Taxes

Taxes an owner pays on the value of any owned property, including land, buildings, or houses.

Lessee

Tenant

Insurance Deductible

The amount of money paid out of pocket before an insurer will pay any expenses

Insurance Premium

The amount you pay for an insurance policy

Equity

The current market value of a home minus the remaining mortgage balance

Eviction

The legal process of removing a tenant from a rental property

Foreclosure

The process by which a bank or other entity takes possession of a mortgaged property when mortgage payments are not being made.

Emergency Fund

This is money that is put aside in case it is needed for an unexpected or unplanned event. This helps you prepare for unexpected expenses.

Appraisal

evaluation or estimation of worth, typically for a home

Refinancing

the process of obtaining a new mortgage on a home to get a lower interest rate