exam 3 (remade)

Question 1

28/36 housing ratio

Answer 1

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

Question 2

PMI

Answer 2

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

Question 3

refinance

Answer 3

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

Question 4

traditional IRA

Answer 4

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,

Question 5

roth IRA

Answer 5

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

Question 6

retirement ages for social security and medicare

Answer 6

social security = 65
medicare = 67

Question 7

COBRA Act

Answer 7

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.

Question 8

FSA

Answer 8

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

Question 9

Commercial Real Estate vs. Corporate Real Estate

Answer 9

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.