Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
28 Cards in this Set
- Front
- Back
|
What is an escrow account and what is it's purpose?
|
Money usually deposited w/ lending institution.This account protects the lender from financial loss due to unpaid real estate taxes.
|
|
|
What is a FICO score? What is the range, meaning?
|
A credit score that helps lenders and other predict how likely someone is make payments over time. The range is 350-850.
|
|
|
How can you improve a FICO score?
|
1) Pay bills online
2) Keep low balances 3) Pay off debts |
|
|
What is a home equity line?
|
a form of revolving credit in which your home serves as collateral. Deductible interest
|
|
|
What is APR?
|
The Percentage cost of credit on a yearly basis. It yields a true rate of interest for comparison with other sources of credit
|
|
|
What is Cosigning?
|
Someone who has to pay up to the full amount of the debt if the borrower doesn't
|
|
|
What is Bankruptcy?
|
One type of personal bankruptcy in which many debts are forgiven. BUT NOT ALL
|
|
|
What is the difference between Mediation and Arbitration?
|
Mediation- The attempt by can impartial 3rd party to solve differences between 2 parties.
Arbitration- The settlement of a difference by 3rd party whose decision legally binding. |
|
|
What is a deed?
|
The document that transfer ownership of property from one party to another
|
|
|
Explain reverse mortgage?
|
it provides elderly homeowners w/ tax-free income in the form of a loan that is paid back w/ interest when the home is sold or the homeowner dies
|
|
|
Explain a contingency clause?
|
a contract conditional that states that the agreement is binding only if a certain event occurs.
|
|
|
What is Balloon Mortgage?
|
A home loan w/ fixed monthly payments and a large final payment, usually after 3,5,or 7 years
|
|
|
What is the purpose of an amortization Schedule? What information does it provide?
|
A report that usually shows the principal and interest allocation of each monthly payment during the first year,the total principal and interest paid in each subsequent year, and the total interest that will be paid over the life of a loan. It provides
|
|
|
Truth and Lending law? July 1, 1969
|
Allows a credit consumer to request an itemization of the amount financed if the creditor does not automatically provide it.
|
|
|
Fair Credit Reporting Act? April 24, 1972
|
Gives consumer the right to know what is in their files, have incorrect information reinvestigation and removed, and include their versions of a disputed item in the file.
|
|
|
Fair Credit Billing Act? October 28, 1975
|
Allows consumer to withhold payment for faulty or defective goods or services when purchased with a credit card.
|
|
|
Equal Credit Opportunity Act? October 28,1975
|
Prohibits credit discrimination based on sex or martial status etc.
|
|
|
Fair debt collection Practices Act?
|
Prohibits abusive, deceptive, and unfair practices by debt collectors
|
|
|
Consumer Credit Reporting Reform Act? September 30, 1997
|
requires creditors to certify that disputed credit information is accurate.
|
|
|
Fair and accurate Credit Transaction Act? April 28,2003
|
Requires the Federal Trade Commission to issue proposed rules to address identity theft concerns.
|
|
|
What is the APR formula?
|
2 x n x l / P(N + 1)
|
|
|
What is the Prime rate?
|
an indication of the rate banks charge large corporations
|
|
|
What is the discount rate?
|
the rate financial institutions are charged to borrow funds from Federal Reserve Banks
|
|
|
What is a T- Bill Rate?
|
The yield on short term (13 week) U.S. government debt obligations
|
|
|
What is a Treasury Bond rate?
|
the yield on long term (20 year) U.S. government debt obligations
|
|
|
what is a mortgage rate?
|
the amount individuals are paying to borrow for the purchase of a new home
|
|
|
Corporate bond rate is?
|
the cost of borrowing for large U.S. corporations
|
|
|
Certificate of Deposits rate is?
|
the rate for six month time deposits at savings institutions
|
