last chp Flashcards
what should you think like when selling a home?
a retailer
What should you think like when selling a home?
A retailer
What condition should your home be in to sell?
Near perfect
what condition should a home be in when trying to sell?
near perfect
what is the return investment on fix-up dollars?
enormous
what is the most important aspect of preparation in house selling
attention to the curb appeal
where should you make sure your house is listed?
on the internet
statistical researchers have found that the best realtors are worth more than they cost. true or false
true
What is MLS
multiple listing service
what should you not use as your realtor?
friends or family
what should you not offer for it will not typically make a sale
a home warrenty
what three reasons is homeownership a great investment?
it is a forced savings plan
its an inflation hedge
it grows virtually tax-free
what does title insurance insure you against?
an unclean title, which is when your proper ownership is in question.
when should you get a land survey?
when buying more than a standard subdivision lot.
what are homes priced on?
LOCATION
where should you buy a house near?
water or a view
what do you need to overlook to get a good house bargain?
bad landscaping, outdated carpet, wallpaper, Elvis paintings.
what should you not overlook when buying a house?
street appeal and good basic floorplan
What is an appraisal?
an opinion of value
What homes should you not buy?
trailers, mobile homes, timeshares.
What should you remember to hate?
debt
What is the best mortgage?
100% down
When are you ready to buy? what two steps should you have completed?
out of debt and a fully-funded emergency fund
what does renting demonstrate?
patience and wisdom
get a payment of no more than __ of your take-home pay on a ___ fixed-rate loan, with at least ___ down.
25%
15 year
65%
Whats ARM?
adjustable-rate mortgage
What were arms brought on by?
the advent of high-interest rates in the early 1980s
What is the concept of the ARM?
to transfer the risk of higher interest rates to the borrower and in return, the lender gives a lower rate up front.
Why are interest-only loans a bad idea?
you are only paying the interest.
What are terrible mortgage options?
ARM interest-only loans reverse mortgage accelerated bi-weekly payoff
why are reverse mortgages a bad idea?
you are putting a paid-for home at risk and the fees are horrible.
why is accelerated a bad idea?
allows you to make a payment every two weeks which equals 13. you make one extra payment a year.
What are the basic ways to finance a home?
conventional
FHA
VA
Owner
What do down payments range from in conventional?
5% to 20%
Whats FNMA
Federal National Mortgage Association.
What’s PMI
Private Mortgage insurance
what are down payments on FHA
3%
Why should FHA loans be avoided?
they are currently more expensive than conventional financing.
Whats VA
veterans association
how does VA work?
benefit the veteran. the seller pays everything allowing for a true zero down purchase.
what is owner financing?
is when you pay the owner over time, making him/her the mortgage holder.
why is owner financing a great option?
you can be creative in the structure of the loan.
what should your house payment never be more than?
25%
What two loans should you really avoid?
ARM and Interest only
mortgage
loan secured by the collateral of a specific real estate property
equity
the value of your house over and above the mortgage
principal
the face value of your mortgage, not including interest
MLS
listing services realtors use
title insurance
protects you against an ownership claim
home warranty
an agreement that ensures the structural soundness of a home
land survey
shows where line property lines are
appreciation
an increase in value.
how much do you need for a down payment to avoid paying PMI
20%
