Studied by 5 people
Lease
a legal document that defines the conditions of a rental agreement
Security Deposit
typically required when you sign a lease and is often one month's rent
Single family dwellings
include previously owned houses, new houses, and custom built homes
Multiunit dwelling
have more than one living unit
Condominiums
are individually owned housing units in a building with several such units
Cooperative housing
is a form of housing in which the units in a building are owned by a non-profit
Factory built houses
are fully or partially assembled in a factory and then moved to the living site
prefabricated home
with components built in a factory, is assembled at the housing site
modular home
has completed pieces transported and set on a concrete foundation
mobile homes (legally called manufactured homes)
are not often moved from their original sites
Zoning laws
restrictions on how the property in an area can be used
home inspection
is an evaluation by a trainer home inspector can minimize future problems
appraisal
which is not a home inspection but an assessment of the property's current market value
purchase agreement or contract
legal offer to purchase the home
earnest money
is a portion of the price of a home that the buyer deposits as evidence of good faith
private mortgage insurance
protects the lender from financial loss due to default
Mortgage
a long term loan on specific piece of property such as a home or other real estate
buy down
is an interest rate subsidy that reduces the mortgage payments during the first few years of the loan
second mortgage/home equity loan
allows a homeowner to borrow on paid up value of the property
reverse mortgages
provides homeowners who are 62 or older with tax-free income in the form of a loan that is paid back (with interest) when the home is sold, or the homeowner dies
Premium
fee paid to insurance company
Insurance
protection against possible financial loss
Risk Shifting
transferring risk to an insurer
Policy Holder
purchaser of policy
Hazard
anything that increases the likelihood of loss through some perial
Insurance Company
risk-sharing firm that assumes financial responsibility for losses
Deductible
set amount the policyholder must pay per loss on an insurance policy
Risk
chance of loss or injury
Peril
anything that may possibly cause a loss
Risk Assumption
taking on responsibility for the negative results of a risk
Policy
a person joins the risk-sharing group by purchasing a contract
Risk Avoidance
avoid risk of traffic accident by not driving to work
Risk Reduction
Wearing a seatbelt and installing fire extinguishers
Coverage
protection provided by the terms of the insurance policy
Insured
people protected by the policy
credit life insurance
used to pay off certain debts
vanable life policy
your premium payments are fixed; cash value varies with stock market
limited payment policies
charge premiums for only a certain length of time until policy is paid up
endowment life insurance
coverage for a specific period and pays an agreed-upon sum of money to the policyholder if they are still living at the end of the endowment period
group life insurance
covers many people under a single policy
adjustable life policy
change your coverage as your needs change
universal life insurance
term policy with a cash value
return of premium term
returns all the premiums if you survive to the end of the policy term
term insurance
provides protection for a specified period of time
decreasing term
pays less to the beneficiary as time passes
whole life insurance
permanent policy for which you pay a specified premium each year for the rest of your life; may also serve as an investment
renewable term
at conclusion of the term, to renew for another term
multiyear level term
guarantees you will pay the same premium for the duration of your policy
conversion term
allows you to change from term to permanent coverage
General Obligation Bond
a bond backed by the full faith, credit, and unlimited taxing power of the government
Revenue Bond
bond that is repaid from the income generated by the project it is designed to finance
Treasury Bonds
bonds issued with a 30 year maturity
Treasury Notes
bonds issued with maturities of 2 to 10 year maturities
Debenture Bond
bond that is backed only by the reputation of the issuing corporation
Serial Bonds
bonds of a single issues that mature on different dates
Call Feature
allows corporation to call in or buy outstanding bonds from current bondholders before the maturity date
TIPS
treasury inflation-protected securities
High
corporate bond that pays higher interest, but also has a higher risk of default
Bond Indenture
the actual legal conditions for a corporate bond
Corporate Bond
corporation's written pledge that it will repay a specified amount of money
Face Value
dollar amount the bondholder will receive at the bonds maturity
Maturity Date
the date on which the corporation is to repay the borrowed money
Treasury Bills
bonds issued with maturities as long as one year
Municiple Bonds
a debt security issued by a state or local government
Convertible Bonds
bond that can be exchanged for a specified number of shares of the corporation's common stock
Trustee
bondholder's representative
Mortage Bonds
a corporate bond that is secured by various assets of the issuing firm
Sinking Fund
a fund to which annual or semiannual deposits are made for the purpose of redeeming a bond issue
large-cap
funds invest in companies with total capitalization of $10 million or more
mid-cap
funds invest in companies with total capitalization of $2 billion to $10 billion
regional
funds seek to invest in stock traded within one specific region of the world
sector
funds invest in companies within the same industry
small cap
funds invest in smaller, lesser-known companies with a total capitalization of between $300 million and $2 billion
socially responsible
funds avoid investing in companies that may cause harm to people, animals, and the environment
high yield bond
funds invest in high-yield, high risk corporate bonds
intermediate corporate bond
funds invest in investment grade corporate debt with maturities between 3 and 10 years
intermediate us government bond
funds invest in U.S treasury securities with maturities between 3 and 10 years
long term corporate bond
fund invest in investment-grade corporate bond issues with maturities in excess of 10 years
long term (US) government bond
funds invest in U.S Treasury securities with maturities in excess of 10 years
municipal bond
funds invest in municipal bonds that provide investors with tax-free interest income
short-term corporate bond
funds invest in investment-grade corporate bond issues with maturities of less than three years
short-term (US) government bond
funds invest in US Treasury securities with maturities of less than three years
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Flashcard (20)