Chapter 8 Flashcards
a person with whom you share living space, living expenses, and other responsibilities
roommate
two or more people who each agree to bear a portion of an obligation
shared responsibility
your daily routine, or the way you choose to live your life
living habits
a refundable amount paid to cover damages to property caused by a tenant
security deposit
the act of making a plan and carrying it out to ensure that an event takes place
logistics
a legally binding agreement that specifies the rights and duties of each party to the agreement
contract
something of value exchanged for something else of value
consideration
a written agreement that allows a tenant to use property for a set period of time at a set rent payment
lease
a written contract that allows you to leave any time as long as you give the required notice
rental agreement
the legal process of removing a tenant from rental property
eviction
an off-site manager hired to take care of rental property
property manager
a cash deposit toward the purchase price that is paid up front
down payment
something of value applied toward the down payment of a new purchase
trade-in
a loan for which a maximum amount is established and approved in advance
preapproved loan
paying off an existing loan with a new loan that usually has better terms
refinancing
a loan used to purchase real estate
mortgage
a contract in which a portion of the renter’s monthly payment is applied toward the purchase price of the rented item
rent-to-own agreement
a strategy for paying off debt in a way that reduces the total interest paid
debt repayment plan
a large lump-sum payment that must be paid at a set time
balloon payment
a fee charged if you repay a loan before the agreed-upon time
prepayment penalty
establishing and following an individual plan for using credit wisely
credit management
a plan to limit the use of credit to no more than 20 percent of your yearly take-home pay, with payments of no more than 10 percent of monthly take-home pay
20/10 Rule
the remaining credit available to you on current accounts
unused credit
unfair, deceptive, and fraudulent loan practices
predatory lending
a person who offers illegal loans at very high interest rates and often uses intimidation to enforce repayment
loan shark
credit type of credit that can be obtained quickly and easily but that often comes with high or hidden costs
easy access
a short-term loan with a high interest rate that uses the title on your vehicle as collateral
title loan
the unethical practice of extending a loan to a distressed homeowner who cannot afford the loan payments, resulting in the lender taking possession of the home
equity stripping
a cash advance from your next paycheck
payday loan
a type of loan that includes a large fee up front
advance-fee loan
