6. Planning for Living and Leisure Flashcards
Equity
The difference between what you owe on your mortgage and what your home is currently worth.
Security deposit
An amount of money paid in advance as a guarantee against nonpayment of rent or damage by the renter. Normally equal to one, two, or more months of rent.
Monthly payment
The amount of money paid to a landlord by the renter for use of the rented property.
Renters insurance
An insurance policy, similar to homeowners Insurance that protects a renter from loss due to theft, fire or other events. Covers the renter’s personal property, but not the building.
Lease
Is a contract outlining the terms under which one party agrees to rent property owned by another
Tenant aka lessee
A person who pays for the right to live in a residence owned by someone else. Leasing.
lessor/landlord
the owner of the property being leased
Down payment
A portion of the purchase price that is paid in advance to secure some equity in the purchased property and minimize default.
Mortgage
An agreement to borrow funds to purchase real property. The loan is then repaid over time, with interest through a series of monthly payments.
Homeowner’s insurance
An insurance policy that protects the homeowner from financial loss in the event of theft, fire, or other misfortunes. This insurance covers the personal property inside the house as well as the structure itself (roof, walls, etc.,)
Insurance
A contract that allows one party to make regular payments over time in return for payments that cover certain types of losses.
Utilities
Electricity, gas, water, sewer, waste disposal and other services.
Discretionary spending
Spending for goods and services beyond the essentials of food, shelter, and clothing. This allows consumers freedom of choice in what to purchase and how much to spend on such things as education, healthcare, entertainment, transportation, and communication technology.
