finance ch.15

credit union

non-profit financial institution owned by it's members

deed

official document transferring ownership from seller to buyer

condominiums

one of a group of apartments people own

credit as a loan with a certain limit on the amount of money you can borrow for a variety of goods and services

open end credit

mutual savings banks

owned by depositors and specializes in savings accounts and mortgage loans

the usual trade off of choosing small payments

paying more interest

landlord

person who owns property that's rented

tenant

person who pays for the right to live in a residency owned by someone else

promise

pledge

a part

portion

on time

promptly

regular savings account

regular deposits and withdrawls

take back

repossess

foreclosure

repossess the property

pros of owning a home

satisfaction, tax benefits

money market account

savings account that requires a minimum balance and earns interest

dwelling

shelter

endorsement

signing the back of a check

the interest computed only on the princpal

simple interest

no matter how often you make payments interest is calculated on the full amount of the original principal with the

simple interest method

single family dwelling

stands on separate lot, not attached to other buildings

vantagescore

technique developed by all 3 credit report agencies

documents showing ownership

title

refinance

to obtain a new mortgage to replace an existing one

finance charge

total amount of money you pay to use credit

equity

value of a home minus the amount still owed on the money borrowed to purchase it

lifestyle

ways you choose to spend your time and money

the 5 c's of credit

-character -capacity -capital -collateral -conditions

factors to consider about credit

-credit costs money -risk involved

how does a credit card work

-purchasing then paying later -charges interest -may have annual fee -monthly payment

types of financial services

-savings funds -checking account -borrowing and using credit

average card holder has how many credit cards?

9

what is FICO?

Fair Isaac and Company founded in 1956

savings and loan associations

a bank that specialized in savings accounts and mortgages loans

an entity that lends money

a creditor

commercial banks

a for-profit institution

stop payment order

a request that a bank or other financial institution not cash a particular check

PMI

a special policy that protects a lender in case a buyer cannot make payments at all or on time

pros of renting

cheaper, less liability and short term

credit as a one time loan that you will pay back over a specified period of time in payments of equal amounts

closed end credit

a form of security to help guarantee that the creditor will be re payed

collateral

automatic payments

companies directly take out funds

ATM

computer terminal that allows a withdrawal or deposit of cash or checks

the use of credit for personal needs

consumer credit

agreeing to be responsible for loan payments if another person fails to make them

cosigning

an arrangement to receive cash, goods or services now and pay for them in the future

credit

chapter 7 bankruptcy relieves an individual from debts arising from

credit card charges

a measure of a persons ability and willingness to make credit payments on time

credit rating

difference between a debit and credit card

debit- you have the money in the bank already credit-borrowing money from the bank because you don't have it

ammortization

deduction of a loan balance through payments over a period of time

under the equal credit opp act you may sue a creditor if the creditor

discriminates against you

the smallest amount and remain a borrower in good standing

minimum monthly payment

certificate of deposit

money is left on deposit for a state period of time to earn a specific rate of return

security deposit

money payed to owner of property by tenant to guard against financial loss or damage that the tenant might cause

cons of renting

monthly money loss and no creativity

fixed rate mortgage

mortgage with a fixed interest rate and a fixed schedule of payments

adjustable rate mortgage

mortgage with an interest rate that increases/decreases during the life of a loan

the income you receive

net income

consideration

matters to thought

the cost of credit on a yearly basis

APR

closing

meeting a seller, a buyer and a lender of funds to complete a transation

mobility

ability to move from one place to another

home equity loan

an option for homeowners to take a second mortgage when extra cash is needed for other expenses

multiunit dwelling

attached to other properties

direct deposit

automatic deposit of net pay

overdraft protection

automatic loan made to amount if the balance won't cover checks written

legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtors is unable to pay his or her debts

bankruptsy

the legal process in which some or all of a debtor's assets are distributed among creditor's because the debtor cannot pay his or hers debts are called

bankruptsy

the greatest disadvantage of using credit cards

being tempted to overspend

complex

building or group of buildings with housing limits

which of the five c's of credit does your income affect?

capacity

apprasial

estimate of the current value of property

points

extra charges that are payed to get a lower interest rate

which law gives a borrower the right to stop payment

fair credit billing act

you will probably find the least expensive loan from

family members

give or get money for something

finance

the total dollar amount you pay to use credit

finance charge

a time period during which no finance charges will be added to your account

grace period

sublet

have a person other than the original tenant over the rental unit and payment for remaining term of lease

people who deceive others by assuming different identities

imposter

renters insurance

insurance that covers the loss of a tenant's personal property as a result of damage or theft

the periodic charge for using credit

interest

lease

legal document that defines the conditions of the rental agreement between tenant and landlord

cons of owning a home

liability and no liquidity

the maximum amount of money a creditor will allow a credit user to borrow

line of credit

mortgage

long term loan extended to someone who buys property