exam 3 (remade) Flashcards

1
Q

28/36 housing ratio

A

A rule suggesting no more than 28% of income should go to housing costs and no more than 36% to all debts combined.

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2
Q

PMI

A

Insurance that a borrower must buy if their down payment is less than 20% of the home’s value, protecting the lender against default.

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3
Q

refinance

A

Replacing an existing loan with a new one, usually to reduce interest rates or change loan terms.

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4
Q

traditional IRA

A

way for people to save for retirement
max 7,000, (goes up 500 a year)
- a vehicle for saving, can put in stocks, bond, mutual fund etc.
- 59 1/2 is the best age to takke it out before being taxed and penalized
tax - money that grows alongside our contributions,

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5
Q

roth IRA

A

tax FREE savings retirement account
- after tax dollars
- paying deduction up front, no taxes later

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6
Q

retirement ages for social security and medicare

A

social security = 65
medicare = 67

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7
Q

COBRA Act

A

Consolidated Omnibus Reconciliation Act = passed in 1985 a law allowing individuals to extend their employer-provided health insurance for a limited time after losing their job or experiencing other qualifying events.

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8
Q

FSA

A

flexible spending account USE IT OR LOSE IT A tax-advantaged account for out-of-pocket healthcare costs, funded by pre-tax payroll deductions.

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9
Q

Commercial Real Estate vs. Corporate Real Estate

A

Corporate Real Estate: Properties and land used by companies for operational purposes, like offices and warehouses.
Commercial Real Estate: Properties used to generate profit, such as shopping centers, office buildings, and hotels, often owned by investors.

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