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How do you calculate equity when you're valuing a house?

market value minus what is owed and other debts

What is rapid rescore

method that can raise your credit score quickly by submitting proof of positive account changes to the three major credit bureaus.

What's the difference between an exchange traded fun and mutual fund?

mf:professionally managed portfolios which may consist of stocks, bonds, or other investments divided into shares. Each fund must have a defined investment strategy; for example, growth, income, domestic, global, or emerging markets.securities that track an index, but trade on an exchange like a stock. They are frequently referred to as "index funds." ETFs typically consist of a bundle of stocks identical to those that comprise a specific index, providing instant diversification within an industry, geographic area, or other specified category.

Is it good to own bonds during periods of inflation?

no

How do we define an above average dividend?

one that provides a current yield greater than the interest rate on a 10-year treasury bond. Look for companies with a history of raising dividends each year

how is Social Security paid for? what what's the percentage that you pay? What's the total percentage that's paid the percentage that your employer pays?

12.4stays the same but wage cap increases every year only tax deductible to employer

what percentage of your earned income is paid into the Medicare system. what is the percentage for you and what's the percentage for your employer?

2.9

What is the maximum individual tax rate?

37

What is a short sale?

A borrower sells the mortgaged property for less than what is owed on the loan balance.

Foreclosure:

A foreclosure is when a bank or other secured lender legally repossesses a house after the owner has failed to comply with the loan agreement

What is a home equity loan?

A one-time lump sum loan secured by the property, with a fixed rate of interest, to be paid off with equal monthly payments over several years. The interest is probably not tax deductible unless the loan is used to "substantially improve" the home.

What is a home equity line of credit?

A revolving line of credit to reborrow funds up to a maximum amount, like a credit card. However, unlike a credit card which is unsecured debt, a HELOC is secured by the property.

What is a default rate of interest, the default rate?

An accelerated rate of interest, typically 28% to 35%, charged on your credit balance as a penalty when either of the following occurs: The issuer did not receive at least the minimum payment by the due date and time. Your payment is not honored by your bank, such as a bounce

What is a variable rate of interest? 14:55

An interest rate that moves up and down based upon a benchmark interest rate which is not controlled by the lender. It is now commonly used by credit card issuers.

What is foreclosure?

Bank takes ownership of a home due to non-payment by owner.

three options if you cant make payments

Forbearance: Put total payments on hold for a number of months, but the unpaid interest is added to the loan principal Interest-only loans: Defer principal payments until a later date, but continue to pay the interest. Increase the borrowing period: Lower your monthly payments by stretching out the payment period, though you will end up paying more interest.

What is in a V net asset value? What is it?

Net asset value (NAV) of each share is the total value of the fund's holdings (including cash) divided by the number of the fund's shares outstanding at that time. The NAV is posted once a day after the market closes.

hat's the tax difference between ordinary dividends and qualified dividends?

Qualified stock dividends are currently taxed at a maximum rate of 20%,Nonqualified dividends are those received from stocks held less than 61 days, dividends from Real Estate Investment Trusts and certain other dividends which are called "ordinary dividends." These are reported on Form 1040 and are taxed as ordinary income at your individual tax rate

difference between revenue and earnings

Revenue is the income a company generates before deducting expenses.Earnings, on the other hand, represents the profit a company has earned; it is calculated by subtracting expenses, interest, and taxes from revenue.

what is the rule of 72

Rule of 72, which can be used to estimate how long it will take for a sum of money to double at a given interest rate, assuming interest is compounded annually. You can use the Rule of 72 a couple of ways: Calculation #1: Divide 72 by the interest rate or the expected rate of return. The result is the number of years it will take to double your money. At 8% compounded it will take 9 years to double your money. Calculation #2: Divide 72 by the number of years it would take to double your money and it will tell you the interest rate you will need to earn. To double your money in 10 years you need to earn 7.2% compounded.

What is the yield to maturity on a bond?

That's to the date when the bond becomes due and you're paid back.

on federal student loans, the interest rates are higher for grad students than they are for undergrads.

The legislation guarantees that interest rates will not exceed: 8.25% for undergraduates 9.50% for graduate students 10.50% for Plus loans

mortgage

This is a legal document which pledges a piece of property to a lender as security for repayment of the loan by the borrower. Repayments are comprised of principal and interest.

What's the purpose of an escrow account?

This is a neutral third party which holds the documentation and money involved in the transaction until the transaction is completed and then distributes the funds and executes the instructions. The escrow company charges a fee for service.

What is a first mortgage? What is a second mortgage?

This is the mortgage that has first claim on the property in the event of a default or the sale of the property. dditional loan taken against the same property which is considered riskier than a first mortgage since the first mortgage must be paid off first in the event of a default or sale of the property before the second mortgage is repaid. The second mortgage usually has a higher rate of interest and a shorter term of 3 to 5 years.

what is bid and what is ask?

bidhe highest price a buyer is willing to pay at that very instant in time.ask:he lowest price a seller is willing to sell at that very instant in time.

What is the coupon yield? What is the current yield? on bonds

coupon (or "nominal" yield): This is the fixed predetermined percentage rate of interest based upon the par value of the bond. The coupon rate does not vary with the price of the bond. A bond with a coupon rate of 4%, pays $40 a year to the owner. That does not change.- amount to be received in income current yield: the annual interest payment divided by the market price of the bond. coupon stays the same but changes in the market price of the bond will change the current yield either up or down.'to find current yield you take the coupon divided by bond price - annual return on the dollar amount paid for a bond,yield to maturity: tells you how much you will receive in the future if you hold the bond to maturity. It is the sum of all cash flows from both coupon payments and repayment of the face value ($1,000)

equity is the difference between the

current market value minus what is owed on the mortgage and any other debts Equity represents the value of what you would receive if the property were sold and all debts against the property were repaid.

What is title insurance and why is it so important?

designed to protect property owners and mortgage lenders against losses which result from imperfections or omissions in title.

Short term capital gains know the difference between that and long term capital gains and the time frames

ess than 12 months max of 37%

if you go to sell the stock and this is the bid, this is the ask and you sell it at the market. What are you going to get? if you buy or sell

expect to buy at the ask price. If you place a market order to sell, expect to sell at the bid price.

Private mortgage insurance ("PMI"):

f your down payment is less than 20% of the purchase price, the lender may charge a higher rate of interest and require you to purchase private mortgage insurance protects the lender from loss in the event of a default for the amount of the loan in excess of 80%. Currently, the cost of PMI is about 1.0% and is tax deductible as if it were additional mortgage interest. ce the loan accounts for 80% or less of the appraised value of the property, the PMI is eligible for termination.

what is the cornerstone of wealth

frugal

What is PMI?

hen buying a house, if your down payment is less than 20% of the purchase price, the lender may charge a higher rate of interest and require you to purchase private mortgage insurance. Private mortgage insurance protects the lender from loss in the event of a default for the amount of the loan in excess of 80%. Currently, the cost of PMI is about 1.0% and is tax deductible as if it were additional mortgage interest.

What is a p e ratio?

price to earnings ratio tells u what the market is paying for each dollar of earnings

Federal loans on the other hand have fixed rates,

private loans do not

lien

property becomes security for the payment of a debt, but unlike a mortgage, the filer of the lien does not have the power to force the sale or take possession of the property When a lien is paid, it is important to make sure a lien release is signed as proof of payment. Title to the property may not be transferred until all liens are paid.

Why is there leverage in a home loan?

reated by the use of borrowed funds to buy a house use other peoples Money to make money lever magnifies increases and decreases in equity

What is depreciation?

reduces, for tax purposes, the cost basis of the property when it is sold. gradual loss of value

Who pays the real estate commission or fee? buyer or seller

seller Historically, the commission has been approximately 6% of the sales price.

What is a peg rate

tool frequently used to try to decide if a stock is in a "buy" range or a "sell" rangecompares the current price/earnings ratio (P/E) to the growth rate of earnings (G)

short sale

value of the house declines to the point where the amount of the loan(s) is greater than the market value of the house.

s there a surcharge for high income earners when it comes to paying for Medicare?

yes

can unearned income be taxed to pay for Medicare?

yes Medicare payroll tax has been expanded to include a new 3.8% tax on all unearned income for those individuals making more than $200,000, or married couples making more than $250,000.

part a of Medicare, how is it funded?

yes financed by 2.9%payroll tax on all earned income paid by all workers with no salary "cap."The same high earners will pay a Medicare Part A tax of 2.35% (up from 1.45%) on earned income over the same income thresholds. This incremental 0.9% Medicare surtax is paid entirely by the employee.