exam 3 (remade) Flashcards
28/36 housing ratio
A rule suggesting no more than 28% of income should go to housing costs and no more than 36% to all debts combined.
PMI
Insurance that a borrower must buy if their down payment is less than 20% of the home’s value, protecting the lender against default.
refinance
Replacing an existing loan with a new one, usually to reduce interest rates or change loan terms.
traditional IRA
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,
roth IRA
tax FREE savings retirement account
- after tax dollars
- paying deduction up front, no taxes later
retirement ages for social security and medicare
social security = 65
medicare = 67
COBRA Act
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.
FSA
flexible spending account USE IT OR LOSE IT A tax-advantaged account for out-of-pocket healthcare costs, funded by pre-tax payroll deductions.
Commercial Real Estate vs. Corporate Real Estate
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.