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Resolved Question: My husband and I are considering buying a house: what are some things to considering before purchasing?

We are currently renting a 2 bedroom, 1 bathroom fixer-upper. The rent is 400 a month. This house is owned by his parents--and they are saying that we can purchase the house from them for $60,000. First off, I don't think the house is worth that much. Secondly, it's literally right next to my in-laws, and thirdly, it'll takes a lot of time and money to fix up the house the way it needs to be. We need new plumbing, electrical, windows, floors, etc. We are considering buying a house that has 3+ bedrooms, and 2+ bathrooms. Something that will accomidate us if we decide to have kids. We currently don't have any children and aren't looking to have any in the near future. I think it's the perfect time to purchase a home, considering we don't have kids (that extra expense), we can take advantage of the first time home buyer tax deduction that is only useful this year, the mortgage rates are low, and houses are CHEAP. The problem is, I feel my husband is very uncomfortable with moving into such a big time purchase. He's getting opinions from other people, and they are telling him to save 20% of the mortgage, and only buy a house that is $100,000 or less, and can be fixed up. I'm afraid if we wait to save 20%, we'll be waiting FOREVER to buy a home, and lose the great advantage of the way the market is right now. Not to mention the fact that we are now currently living in a home that needs to be fixed up, and we don't have the time! My husband and I make about $60,000 a year combined, and don't have any debt other than my student loans, which are about $7,000 total. Is there any reason right now we shouldn't go a head and purchase a home? Are there things we should be looking at before we make that leap? Any home buying advice is welcome--neither one of us has every bought one before. Thanks in advance! more

Voting Question: Can I sponsor my son to buy a house so that he could get a mortgage?

He is currently doing graduate work and has been having superb credit score (750+) for at least 5 years. But he has minimum income (<$3000 a year) and has a $23000 college loan (currently deferred). I want to sponsor my son to buy a house and have the house under his name (to get the $8000 credit). I have a superb credit score as well and a high paying job. I will also be able to put 20% down for him. Given the situation, will I be able to sponsor/help him to get a mortgage with a low interest rate that only I would qualify while still have the house under his name (I will pay for the mortgage until he has a job)? If I have been claiming him as a dependent on tax returns and I already have a house, will he still qualify to get the $8000 1st-time-buyer credit (I can choose not to claim him on my return next year, if that matters)? Thanks! more

Resolved Question: Gay couple considering marriage in Ontario Canada..Tax Advice ?

We have been together for over 20 years. We jointly own our (mortgaged) home...have no dependents....each work full time at an hourly rate but one of us pulls in more income from gratuities and is usually the higher income earner (negligible). We have been filing separate income tax returns to allow the lower income earner to claim deductions on property tax, capital gains etc. We are now considering marriage, but as we are committed to one another in every way, we wonder what possible advantage this could have economically. We are thinking of marriage as "the right thing to do" to validate our union, and as a romantic gesture to compliment one another on our respect for it. However, if the tax burden increases as a result we'd like to know beforehand. Any advice ? Thank you for your attention and hope someone can clear this up ! more

Resolved Question: You take a $150,000 mortgage at 11% interest.?

You take a $150,000 mortgage at 11% interest. Which of the following statements is false? A. You can pay a fair amount of extra principal down on your loan (say even doubling the payment) every month or never, it's your choice whenever you want to and there will be no penalty imposed by the bank as long as you make the minimum scheduled payment. B. If you could improve your credit to reduce the rate to 8.5% over a thirty year term you would save about $100,000 in total payments. C. Over a 30 year term you will pay a total of over $500,000. By increasing your payment by only around 18% you may reduce the term by ten years and save over $200,000. D. If you take a 20 year term adjustable mortgage at 11% and in 5 years the rate goes to 12%, then in 10 years to 13% and in 15 years to 14% you have 5 years at each rate for an average of 12.5%. This costs the same as a mortgage at 12.5% fixed from the start and you save money the first ten years. more

Resolved Question: Qualifying for a mortgage loan?

Qualifying for a mortgage loan? My fiance and I would really like to purchase a home in the next few months (preferably before December 1st to get the first-time buyer rebate), but I need to know what our options are. Currently my credit score is 650, but is rising slightly every month. The only debt I have is federal student loans (about $8500), which I pay on time and more than minimum every month. My car is paid off, I have no CC debt, etc. I also don't have any open accounts other than the student loans, so my credit to debt ratio is bad. My fiance went through a divorce and his credit is all but destroyed. His score is 559, and I've just begun to start helping him repair it. I'm positive we can raise it in the next few months, but not enough for it to be considered "good." My documented gross income is about $28K (I also have some under the table income, but no way to show this). My fiance's income has taken a big hit this year--on last year's tax return, his gross income was $59K, but as of now, it's looking like he'll finish this year at about $44K. Still a lot more than mine. My credit is better than his, but I don't think there's any way I can be approved for a loan with my lower income. I need his income, but with his horrible score is there any loan we can be approved for? I know we can be approved with a 20% down payment and high interest rates, but we just won't have 20% ready before December 1st. We can for sure have 5%, and perhaps 10%. What are my options? more

Voting Question: Help me out with this math problem.?

I have $50K. I could either use it to pay cash for a mobile home or use it to put down 20 percent on a townhouse in the same school district. Lets assume my lot rent is 600 per month. It will go up 3% per year for thirty years until the mobile home has lived its useful life. My mortgage on the townhouse is 1500 dollars per month, including principal, interest, taxes, insurance, and HOA fees. Lets assume I invest the 900 saved on the mortgage and earn 5% per year. On the other hand, let's assume the house appreciates at a rate of 3% Am I better off buying the mobile home or the townhouse.It turns out the house would be worth 606,815.62 in 30 years.Here is the final balance on my 900 savings after 30 years: 749032.77 more

Resolved Question: What do people think about this newspaper column and illegals?Illegal immigration costs us all dearly?

Illegal immigration costs us all dearly http://www.eastvalleytribune.com/story/140777 Linda Turley-Hansen, Commentary June 20, 2009 - 5:50PM Catastrophe, in the aftermath of the collapsed housing bubble, still pervades our East Valley while blame searches for a home. We already know that Fannie Mae and Freddie Mac are two of the baddies. Their downfall began in the 1990s, under a Democratic administration, when the two quasi-private mortgage companies, in cahoots with the feds, were pressured to finance underqualified buyers. Though there were some efforts to correct the problem, the failed policy continued to worsen under the Republicans. Even with that, the monster bubble could not have happened unless the market met demand. Think about it. The market responded with the help of huge numbers of low-paid, illegal workers. Their agents were not only industry lobbyists, but also those who insisted Americans wouldn’t do the work. They spread the mantra beyond our southern borders, and underprivileged Mexicans heeded the call. Now, our depressed neighborhoods speak to the results of that vast, cheap labor force. Did I mention illegal? Did I mention citizen workers were kicked to the curb? Several weeks ago, I wrote about East Valley residents who not only do dirty work, but they love it. They are regular, struggling folk, who tend to be the catch basins for the runoff from fabricated civil rights; they’re the designated losers when illegal players cut in line. Several responses from readers to that column, confirming the lie that “Americans won’t do dirty work,” deserve to be published. This, from Fran and John Anderson, longtime Mesa residents: The Andersons are parents of three sons. Sadly, the illegal avalanche penetrated their lives in an unimaginable way. “We appreciate your article on 'do the dirty work.’ We have felt this way for so many years. Especially when back in the early 1990s our oldest son wanted to do landscaping so badly. He loved being outside, didn’t mind the heat, enjoyed camping, hunting … all that good stuff. When he got out of the Army, he tried to get into landscaping … but the white people were the minority, so wouldn’t be hired. He ended up not doing anything and passed away shortly thereafter by his own hand. All he wanted was to do what he loved.” A veteran, lost in civilian life, gets caught in the crosshairs of an industry pirated by illegal workers — a double whammy. And, this from Rick Wagner, owner of Wagner Installations Inc: The Mesa resident was once a flooring installer who tried to compete. In early 2000, Wagner was asked by “every company he worked for to lower his pricing to match the illegals’ rate.” His answer was he couldn’t and still remain in business because “I report my taxes ... carry workmen’s comp(ensation) ... and I’m licensed.” Wagner said that soon, every one of those companies switched to an almost exclusive Mexican installation force. Determined to survive, he went on to start his own flooring business. He “beefed up his English speaking, citizen crew” and, today, while so many flounder, Wagner is flourishing because the construction industry is slumping; illegal immigrants can’t find work; homeowners are uncomfortable with illegals in their homes; immigration controversy over tax avoidance and the love of benefits; crackdowns on illegals and companies that hire them; the E-Verify program. And, finally, Maricopa County Sheriff Joe Arpaio. “Illegals do not want to stay in Arizona with him around,” Wagner said. “The above are reasons why all but two of the companies we worked for in the past have gone under,” Wagner said. “In contrast our company has grown ... beyond our expectations.” He warns, “Wake up Arizona and look at the costs associated with illegals in our system.” An entire culture has been built out of the promotion of illegal workers, a culture that assisted in inflating the bubble that has deeply harmed our economy. This day was bound to come, in which Americans are forced to reclaim their job market, bent and broken. Left alone, citizens themselves can do so — without fed intervention. Too bad the Andersons’ son isn’t here to help. — Linda Turley-Hansen is a syndicated columnist and former veteran Phoenix television news anchor who lives in the East Valley. She can be reached by e-mail at letters@lindastake.com. more

Voting Question: Credit Cards for Teens - Any Advantage in the Window before the New Law Clamps Down?

I know I'm in a minority thinking that a responsible 18-year-old should build a credit history through use of "real" credit cards. While I don't want to provoke arguments here, I'll just say that my 20-year-old daughter has a TransUnion credit score (creditkarma.com) of 760 that I can't help but believe will help with favorable loan rates on a first mortgage. As I understand it, with a few exceptions, most of the provisions of the new "Credit Card Accountability, Responsibility and Disclosure Act of 2009" -- and I presume including Title III (the controls on under-age-21 issuance) -- don't become effective until February 2010. What are the big-name card issuers doing over the intervening months? I'd like to get my 18-year-old son building his credit history, and for right now he's got a 2-month-old Citibank secured card (required a deposit equal to the credit limit) with a very, very modest summer lifeguard job income. I suspect it will improve his creditworthiness after building some months of a good history on the secured card to switch to a regular credit card. While I could always co-sign, it seems logical that it might be preferable for credit score purposes for it to be just his card. I figure he needs to wait to have a number of months of secured card transactions before going for the real thing. I don't want to see him wait too close to February 2010. Or are the major banks already reining in their credit for teens in view of the impending restrictions? more

Resolved Question: how long will my credit rating, go back to being good?

Hi every one, i am 20 years old and for the past couple of years i have had catalogues, credit cards, store cards. and have not always made the payments on time (stupid i know) ive had court letters and so on, also most of my debts had been passed on to solicitors etc. I have now met my partner and we are looking to but our own House with a mortgage, but there is my financial history, it is however all paid and up to date now so how long will it be be for my rating goes back to good and i can get credit once again? thank you in advance for your help! more

Resolved Question: Finance Question for mortgage?

ok this is not real life scenario but more of a homework question. I have been trying to do this for a while. i end up gettin 1001088 for part a and 60065.28 for part b. Can anyone confirm those answers are correct? please and thanks in advance. question: Ned purchased a house for $487,500. He made a down payment of $20,000. The interest rate on the mortgage is 6% per annum compounded semi-annually. The mortgage has to be paid out in 30 years. a) At the end of 30 years, how much will Ned have spent on the house in total? b? How much money was paid out in interest over the 30 years? more

Voting Question: Finance Question (mortgage related)?

Resolved Question: Question about buying a house?Then rent it?

Since the housing market is good right now and there are houses in my neighborhood that are an excellent prices. I'm only 20 years old and a college student but I live with my boyfriend and I'm thinking that when we marry we can qualify for a home around our budget. I just am afraid that later houses prices will rise and can't afford it. Do you think it will be good to buy a house and have it on rent for at least a year or more. I did some research based on our qualifications and a possible monthly mortgage is like $700-$900 on a 6% interest rate. So i think it will be good to rent it out and I might be paying more than the minimum mortgage. What do you think?-We currently live in a cheap apt and that's why I feel that it won't be a problem to pay rent and make payments tor mortgage with the help of the tenants rent. -And also do we need to pay or have permission from the city hall to rent property?Oh and to have those tenants to stay at a reasonable time, I should require them to sign a lease right? How is that process? more

Resolved Question: Bad Credit Mortgage in Colorado....is it possible or should we just file Bankruptcy?

We are looking to purchase our first home in the Denver area in about a year. We both have bad/old credit(both of our credit scores are below 600) Our income will be around 75k(I am finshing up nursing shool) We are trying to see if this is even possible or if we should just be content renting for several more years. We are expecting a higher interset rate. I have heard of "B loans" & "sub prime lenders" and have been trying to look into them. We are trying to decide if we should just file bankruptcy now and see if our credit gets better or if it is possible to get a loan? Will we need 20% down with this bad of credit, or can filing bankruptcy help that? more

Resolved Question: I moved address and my bank account was closed. Will this affect my credit score?

I opened an account when I was 12 and never used it. When I was 18 I used it a little more and went £400 overdrawn on an interest free overdraft. I didn't use the acccount for 6 years but then started to pay down the debt. £20 every few months - till it reached around £100 overdrawn. I went to log into my account today and found out it has been closed - probably due to inactivity. because I moved address I have no idea if they tried to contact me or whether any debt was written off. If there was £100 left in there, and they decided just to 'write off' the money - how likley is this to appear on a credit rating? The address the bank account was aligned with was one I rented for a couple of months. Therefore it has no links whatsoever with where my mortgages, credit cards etc have been linked. I am hoping the bank just closed the account and forgot about it Thanjs more

Resolved Question: How does the recent rise in Mortgage Rates Affect Selling Prices?

Bloomberg.com/Bankrate.com are reporting the latest average for 30-year fixed at 5.74, a whopping nearly 20 basis point increase just today (Wednesday 6/10). I locked in last week just after the original Black Wednesday in May. I'm happy with the rate and payment. Now my concern turns to the house prices. I've read that in this kind of market, if mortgage rates go up higher in the short term, prices will have to come down. Is this true? And if so, how does this affect the appraised value of the home? The reason I'm asking is that I have an approved VA loan and they are required to appraise the house and so the loan funds are limited to the appraised value. There's a contingency in my contract that allows me to recover everything deposited should the value come in lower. If this happens, is it common for the buyer (if its a builder) to come down to the appraised value or for the seller to exercise their right to walk away and recover the deposited funds? more

Resolved Question: Why a Primerica Smart Loan?

If the reps KNOW it's a MUCH worse deal than getting a conventional mortgage, why do they lie to their friends and family and represent it as a great loan? The simple interest feature means nothing when the loan has a higher interest rate. In fact, a Primerica SMART loan that starts as 30 years that is scheduled to be paid off in 22 years through bi-weekly payments carries: -A higher Monthly payment -More than Double the closing costs -Worse reduction of principal on an amortization schedule when compared to a good old 20 year mortgage. So, you're done in 20 years instead of 21 or 22, you have a lower monthly payment, and it costs you a lot less to get. Also, the SMART loan has a HUGE pre-payment penalty which the conventional won't. So, if you can't PROVE my assertions wrong, why do you sell it? Don't use canned PFS quotes, answer with FACTS and tell me where you're getting them."If I recall, you only been with Primerica for 6 months and then quit? " Some of us are quicker learners than others "You seem to think the SMART loan is a mortgage, but its really a debt consolidation loan" LOL....A mortgage is a transfer of debt to a lender as security for a loan. Is it a loan or a mortgage or the same? By the way, on your SMART loan solution, it has a check box for 1st or 2nd mortgage. Silly! "It combines all your debt into one monthly payment, thus lowering your monthly payment" Same as a conventional mortgage. "Do you even understand the difference between a simple interest vs schedule interest?" I certainly do. Again, the high interest rate makes this feature inferior to ANY loan of the same duration. If you can't understand this premise, hang up your license. "It is most effective when it is paid bi-weekly." Actually, most effective to pay daily. :) "I've done over 100 SMART loans" I've done over 1,000 mortgages, & understand how to compare total paymentsWell, as usual, as soon as you start mentioning FACTS, the Primericans run like cockroaches when you turn on the lights. more

Resolved Question: how to calculate credit card interest / how long it will take to pay it off?

I need an EQUATION or two. I'm trying to program a credit card debt calculator in PHP to basically tell me this as a result..... if you currently owe $80,000 in credit cards, and your average interest rate is 20%, You will pay $159,196.96 in interest, your total payment will be $239,196.96 and it will take you 54.33 years by paying the minimums. the only part that i know for sure is to add the two numbers together to get the total amount.. beyond that i'm kind of lost, mostly because i don't understand how credit card interest works on a deep level. I understand the "simple interest" model, which is NOT what credit cards work on.. most of the stuff i find on the net is for mortgages and simple interest. that doesn't help me in this case. thanks in advance!! the equations themselves will help. more

Resolved Question: How would you handle this situation?

Nearly 7 years ago, we filed for bankruptcy due to my husband's bad management of a business. After that, I found out that years before we knew each other, he had a very bad credit rating. And now, when we are nearing our release from bankruptcy, I find out that a cheque written on his new business account just bounced. He owes several thousands of dollars on his business credit cards, has no money in his personal bank account to pay any of his portion of the bills, including the mortgage and only has a couple of renovation jobs pending payment of about $2000 which isn't enough to even make a dent in any of his bills. All of the charges on his cards are for material he used for the jobs he completed, but when he got the money, he spent it rather than paying off the cards. I am sick about this so I asked him to show me a list of what he owes so I could see if there is a way to figure things out. His response was that he wasn't going to worry about it and he didn't want to bother looking at it tonight because it would bother him and keep him awake. Meanwhile, I have been scrimping every cent and tonight when I went out with my friend, I had a $1.39 hamburger. He comes home with 4 rented movies plus a new movie for $20, all of which he put on his personal credit card. He is also on this self imposed diet where he has to eat only organic food which is very expensive. I used to buy all of our groceries but since he's been on this organic diet, I can't afford them and so he has been buying them, again all on his credit card. I am not going down the road of financial ruin again but I fear it's already too late as he is in over his head yet again, doesn't seem to care and leaving me to try to pick up the pieces of our lives. At this point all I'm thinking about is finding a job elsewhere and leaving him. I can't believe we are in this situation again. He taked no responsibility for this mess either and blames his business partner, the government anyone but himself.I think I am at a point where I no longer have any energy left to attempt an intervention, even though that is precisely what he needs. It's funny because when he wants to make a huge purchase (like his $5000 tv) and I voice my opinion in a calm, logical manner, he freaks out on me telling me he wants it and he's getting it. Then after that all I hear is that he has no money, or he'll say we should have started the biz small out of our home instead of getting a store - which was my suggestion before we went bankrupt. He never listens to me. Why do I put up with him? I hate him for what he's doing to us.Before we went bankrupt the 1st time and the situation was really bad and we had no money left and huge debt from the store and after being so patient for weeks, I completely lost it on him. I am a very mild mannered person so this was totally out of character for me but I was fed up not only about the situation, but also that he wasn't dealing with it (just like now). I was like a raving loonie swearing at him and telling him we needed to deal with this situation and that we need to sit down and figure it out. His response? He told me how selfish I was. If I press it this time, he'll tell me to f-ing shut up. Nice. I think the only thing that's going to wake him up is for me to leave but the joke will be on him because I won't be back.I agree with you, he has a compulsive spending problem. Wish I would have seen that 10 years ago before we married. I don't love him and haven't loved him for a long time now. He will never admit this situation is his fault. He's blaming everyone else. Can't wait for my turn to be blamed. I am SO ticked off!!! He's in there sleeping like a baby and it's nearly 1 a.m and I am so fired up about this debt. I cannot believe we're going through this AGAIN!!! I just cancelled my monthly investment payments and am wracking my brain on ways to get more money without having to borrow from anyone. Shouldn't he be here doing the same if he was a responsible individual. Worse decision I've ever made.... more

Voting Question: Accounting Test!! HHEELLPP?

1. Current liabilities are a. due, but not receivable for more than one year b. due, but not payable for more than one year c. due and receivable within one year d. due and payable within one year. 2. On June 8, Acme Co. issued an $80,000, 6% , 120-day note payable to Still Co. What is the due date of the note? a. October 8 b. October 7 c. October 6 d. October 5 3. The interest deducted from the maturity value of a note is called a. proceeds b. discount c. face value d. maturity value 4. The maturity value of an interest-bearing note payable is the a. face value plus the interest b.face value minus the interest c. interest d. face value 5. Which of the following would most likely be classified as a current liability? a. Two-year notes payable b. Bonds Payable. c. Mortgage payable d. Unearned Rent 6. The current portion of long-term debt should a. be classified as a long-term liability b. not be separated from the long-term portion of debt c. be paid immediately d. be reclassified as a current liability. 7. The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n) a. payroll expense b. contra account c. asset d. liability 8. Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings? a. FICA tax rate b. wage and tax statement c. FUTA tax rate d. wage bracket and withholding table 9. Which of the following taxes would be deducted in determining an employee's net pay? a. FUTA taxes b. SUTA taxes c. FICA taxes d. all of the above 10. Payroll taxes levied against employees become liabilities a. the first of the following month b. at the time the payroll is paid c. when earned by the employee d. at the end of an accounting period 11. Payroll entries are made with data from the a. wage and tax statement b. employee's earning record c. employer's quarterly federal tax return d. payroll register 12. The required form that is filed with the Internal Revenue Service showing the amount due for income taxes withheld and FICA taxes is the a. Employment Withholding Allowance Certificate (Form 941) b. Wage and Tax Statement (Form W-2) c. Employer's Quarterly Federal Tax Return (Form 941) d. Corporate Income Tax Return (Form 1120) 13. The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the a. payroll register b. payroll check c. employee's earnings record d. employer's earnings record 14. Which of the following is an example of a variable component of a payroll system? a. hours worked b. Medicare tax rate c. rate of pay d. Social security tax rate 15. An aid in internal control over payrolls that indicates employee attendance is a. "clock card" b. voucher system c. payroll register d. employee's earnings record 16. A pension plan which requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed a. funded b. unfunded c. defined benefit d. defined contribution 17. Vacation pay payable is reported on the balance sheet as a. current liability or long-term liability, depending upon when the vacations will be taken by employees b. current liability c. owner's equity d. long-term liabilities 18. Quick assets include a. cash; cash equivalents, receivables, prepaid expenses, and inventory b. cash; cash equivalents, receivables, and prepaid expenses c. cash; cash equivalents, receivables, and inventory d.cash; cash equivalents, and receivables 19. The cost of a product warranty should be included as an expense in the a. period the cash is collected for a product sold on account b. future period when the cost of repairing the product is paid c. period of the sale of the product d. future period when the product is repaired or replaced 20. Estimating and recording product warranty expense in the period of the sale best follows which of the following accounting concepts a. Cost concept b. Business entity concept c. Matching Concept d. Materiality concept more

Resolved Question: Is it possible for me to get a mortgage at a decent rate?

i'm 20 years old and a full time student. My mom filed bankruptcy about a year ago and is currently renting a condo. I was wondering if it would be possible for me to buy a house and just rent it to her. I was thinking about doing a couple of things to it and maybe trying to sell it when i get out of college. I make about 10k a year landscapeing and could make about a 20,000 down payment on around a 150,000 houseI have no credit and have payed cash for school, vehicles, and pretty much everything my whole life more

Resolved Question: Consumer Math Help Plzzz?

1. What type of reports do Equifax, TransUnion, and Experian produce?(1 point) income studies credit reports crime rate statistics bankruptcy filings 2. How long does a negative notation on your credit report last? (1 point) one year ten years seven years forever 3. When buying or selling a used car, what’s the best resource on finding an accurate price? (1 point) Cheryl Red Book Kelley Blue Book Paul Pink Book Newspaper Advertisements 4. If you drive more than 15,000 miles each year, you should lease a car instead of buying one. (1 point) True False 5. 401-K’s and IRA’s are examples of what? (1 point) Debt Consolidators Stock Markets Retirement Accounts Checking Accounts 6. What type of insurance pays you a monthly cash benefit in the event you’re injured and cannot work? (1 point) Automobile Insurance Long Term Care Insurance Disability Insurance Life Insurance 7. Your annual household income is a part of your credit score calculation. (1 point) True False 8. A credit card is an example of what kind of credit: (1 point) Deferred Revolving Interest-Free Recurring 9. If you have a low credit score, you’ll pay more for insurance. (1 point) True False 10. An individual who prefers high risk investments with a (possibly) high-reward is called: (1 point) Risk-finding Risk-taking Risk-seeking Risk-searching 11. Wealthy people and companies that invest money in startup companies in exchange for a large share of future profits are called what? (1 point) Venture capitalists Loan sharks Loan officers Risk-averse 12. When someone prefers to invest and participate in the founding of new companies instead of investing in savings instruments or the stock market they would be called what? (1 point) Risk-averse Entrepreneurial Unilateral Risk-finding 13. What federal program makes sure your bank deposits are never lost due to bank bankruptcy? (1 point) The Federal Deposit Insurance Corporation The World Bank The Securities and Exchange Commission The Federal Reserve Bank 14. What is the single best way to increase your long-term income? (1 point) receive a promotion receive a merit pay increase increase your educational level invest in startup companies 15. What is the best way to decrease your expenses? (1 point) pay down any outstanding credit cards get a smaller apartment/house sell your automobile diversify 16. Which of the following expenses would be considered discretionary expenses? (1 point) rent electricity credit card payments magazine subscriptions 17. When an asset (something of value) is always connected to the ground and cannot move – it is called what? (1 point) Liquidated Real Property Collateral Real Estate 18. Expenses such as electricity, telephone service, and water service are called what? (1 point) Bills Debt Utilities Revolving Credit 19. The money you pay to an insurance company to insure your property or asset is called what? (1 point) An insurance premium An insurance deductible An insurance payment Insurance coverage 20. When an asset (something of value) such as an automobile or home is voluntarily sold for cash, it would be considered what? (1 point) Refinanced Liquidated Collateral Repossessed 21. Documentation from an insurance company that states what item or property is insured and the amount that you will receive if the property is destroyed is called what? (1 point) An insurance premium An insurance declaration An insurance policy An insurance deductible 22. An Emergency fund should be made up of what? (1 point) Real property Savings instruments Stock Cash Only 23. The amount of money you’re likely to make in a lifetime is called what? (1 point) tax bracket income potential taxable income equity 24. When inflation is high, on a daily basis the money in your pocket becomes what? (1 point) Worth more Worth less Liquidated Discretionary spending 25. A numerical comparison between two figures is called what? (1 point) a ratio a percentage a sum a difference 26. When your credit score is poor, your mortgage interest rate will be: (1 point) Higher Lower 27. A revolving credit account where the cardholder must pay the full account balance each month is called what? (1 point) a charge card a debit card a credit card a gift card 28. In a list of numbers placed in numerical order, the middle number is called what? (1 point) the average the median the difference the total 29. A FREE warranty from an automobile manufacturer that covers any and all mechanical problems for a specified period from the purchase date is generally called what? (1 point) Supplemental insurance Bumper-to-Bumper warranty Manufacturers extended warranty Sellers guarantee 30. A short-term financial goal is achieved within what time period? (1 point) 10-25 years 1-12 months 1-5 years 30 years 31. E more

Resolved Question: please pleaseee help with Consumer Math B Final!! I need this grade!! please!!! part 2?

26. When your credit score is poor, your mortgage interest rate will be: (1 point) Higher Lower 27. A revolving credit account where the cardholder must pay the full account balance each month is called what? (1 point) a charge card a debit card a credit card a gift card 28. In a list of numbers placed in numerical order, the middle number is called what? (1 point) the average the median the difference the total 29. A FREE warranty from an automobile manufacturer that covers any and all mechanical problems for a specified period from the purchase date is generally called what? (1 point) Supplemental insurance Bumper-to-Bumper warranty Manufacturers extended warranty Sellers guarantee 30. A short-term financial goal is achieved within what time period? (1 point) 10-25 years 1-12 months 1-5 years 30 years 31. Either party involved in a contract can change typed passages by writing the changes on the document and then having both parties initial next to the change. (1 point) True False 32. If your credit score is low, or you don’t have established credit, a person that does have good or established credit will have to what? (1 point) co-sign on the debt assign the debt guarantee the debt A and C 33. What is the most important part of a contract to read? (1 point) The bold passages The fine print The period of performance The payment schedule 34. All charge card and credit card companies must send you a copy of the terms of your cardholder agreement if you request it in writing. (1 point) True False 35. When paying for medical care, the portion of the total cost you pay out-of-pocket for prescriptions and/or doctor visits (after insurance) are called medical: (1 point) Supplements Co-pays Premiums Deductibles 36. Supplemental insurance policies can pay you regular income for: (1 point) Long-term disabilities Injury disabilities Cancer treatment All of the above 37. The reduction of value of an asset (something of value) over time due to normal usage is called what? (1 point) Depreciation Appreciation Decay Inflation 38. What are considerations to think about when planning for retirement? (1 point) Time to retirement Planned quality of life Current savings All of the above 39. Experian, TransUnion, and Equifax are all involved in collecting information that results in a report of your: (1 point) Income Debt to Income Ratio Credit Score Interest Rate 40. The retail price of a brand-new automobile is also known as? (1 point) The wholesale value The sticker price The Kelly Blue Book price The dealer price 41. When you're retired or disabled, what government institution pays your regular monthly income based upon contributions you made while working? (1 point) The Social Security Administration Medicare Medicaid Elderly Assistance Institute 42. When you have a fixed amount of income each month, with no expectation of an increase or decrease in the amount you receive you're living on a what? (1 point) Variable income Fixed income Poverty line Low-income subsidy 43. The amount of goods and services you can buy with your money is referred to as what? (1 point) Inflationary spending Bartering Purchasing power The exchange rate 44. The simplest form of a loan contract between two individuals is called what? (1 point) Exchange agreement I.O.U. Borrowing agreement Lending agreement 45. If your down-payment on a home is GREATER than 20% of the total value, you'll generally have to purchase Personal Mortage Insurance. (1 point) True False 46. The metaphor for your main income sources during retirement is what? (1 point) The four-legged dog The three-legged stool The three-pronged attack The four-legged stool 47. Mortage loans have lower interest rates (and lower risk to lenders) than automobile loans, why? (1 point) The bank will always know where to find a house Automobile loans have smaller loan amounts Automobiles can be hidden from repossession A and C 48. The payment schedule on a mortage is created using what? (1 point) An amortization table A balance-due spreadsheet An equity schedule A principal repayment plan 49. If you're living "beyond your means" it's likely you'll eventually go bankrupt. (1 point) True False 50. The type of card that is linked to your checking account and doesn't accrue interest is called what? (1 point) a charge card a credit card a debit card a revolving card more

Resolved Question: Refinancing a home loan do I need to put 20% down again?

With all the mortgage rates dropping, I'm considering refinancing my home loan. Do I have to put a 20% down payment again to avoid PMI even for a refinance? My concern is that if my montly payments get lower, but now I will have to pay PMI, it might be more feasible for me to just not refinance, since it nets out to the same, and I don't plan on living at my current home for 3 more years. more

Voting Question: Lender offered to re-set my mortgage to 20-year balloon?

I owe about $85k on a 6.5% fixed with 26 years to go. I requested a loan modification (with the new Obama plan) and the call I got yesterday from the "negotiator" was that they will lower my interest rate to 3% which lowered my payments almost $300 AND there would be a 20 year balloon. I asked how long I'd make the new lower payments and she said "this is not like a refi, your existing mortgage has 314 payments left and you will pay the new payment for that term." When I asked what the 20-year balloon was she seemed confused and said "oh that means you will have like $52K left to pay in one lump sum. But you can sell, or refinance at that time." There is also a $500 fee they are charging me (I don't have to pay it...my mortgage co is rolling it into this). I am lost! she said the paper work will be here by wednesday next week. But I am trying to search for a 20-year balloon to see what this is...and I've got NOTHING! Anyone have any clue???Regarding 3% reate offered...it is a fixed rate. So she must have been mistaken about paying the new payment for 314 more payments. If I am understanding you all correctly, a 20 year balloon is 241 payments with the last payment being one huge lump sum. But I will hopefully move out way before then. I already have almost $50K in equity right now. It's just that my income plumented. Can you alter your answers if necessary since I forgot to include this info....thanks so much for the quick replies! I have been pounding my head over this. more

Resolved Question: Should I pay off my mortgage now? I only have 4 yrs left before maturity. Or should invest my money elsewhere?

Here are the details: My current principal balance on my mortgage is $24,000 at 6.875% 20-year fixed rate. It matures after 52 more monthly payments (about 4 years 4 months). If I paid off my mortgage now, I'd owe $25,250. Is it smart to pay off my mortgage now? I quite like the idea of paying less every month, especially since my wife and I are retired and are on fixed income. more

Resolved Question: house legal advise, ex trying to take advantage --please help?!?

Hello, I have a huge problem with my ex and our house that we share. To sum up the story, we were never married just engaged when we bought the house in 2006. We broke up 1.5 year ago and I moved out since he wanted to stay and make payments. We had a huge fight when we broke up. He tried to have me sign the deed of our house over to him and still keep my name on the mortgage. In addition to closing and taking our savings that we had. This was all after, I agreed to take half of his credit card debt (all in his name) since it was our debt technicaly and I felt quilty of him just paying back for it. This was all before the deed scenario. We sort of had a falling out and things just remianded where he stayed there and was making payments. Now, he started to email me again regarding the house, I received 20 emails in about a week from him. I'm just scared that he will take advantage of me, he is foreclosure/real estate attorney and I'm having a hard time believing him especially after the break up. He's deceived me so many times in the 6 years we were together in every way possible. He is telling me the new options that are available and that we could finally resloved this situation. Here is a snap shot of the email that I got from him "1. Prevent damage to either of our credits. 2. Ideally, get rid of the house either via short sale, deed in lieu (which means give the house directly back to the bank), or principle reduction and then sell. I don't need a 3bd house at $2k/mo. This depends on what the bank will agree to. It's not in my control, but I will pursue and argue for this as much as possible. 3. If getting rid of the house is not possible and we are stuck with it for now, then I would at least like to reduce the payment via an interest rate deduction." This was all after he told me how he was doing very well with his law firm in the inital email and that his accounting (he's a cpa as well) contact expired and he can be considered unemployed giving us a golden ticket out of this mess. I just don't know what to think, he wants me to send my documents to our mortgage bank so they can look at the options. I told him I would do this monday after he kept emailing me non stop. Do you guys this I need to get a lawyer and if so what kind rela estate/family. I'm so scarred of him and I don't know what to do nor do I have any $ to do anything. I work and go to school and I'cant afford any extra attorney expenses. Can someone please give me any sort of advise, I have no family/friends to turn to. I'm scarred for my life and I don't want to have anxiety attacks like I used to. To emails that he sent were vague and he initially wanted to do a modification option but now he is saying he's ok financially but wants the option #1 in the email. He is always vague and always has a alternative motive with everything. To make things weirder, he emails this to me after he breaks of with his gf (who's company is moving into my office bulding, on the same floor on monday). He sent me an email the next day after they break off. I also know some people at his gf compnay since my ex used to work there (he got her a job there) and I'm freaking out even more. I don't know what to do. I feel so scarred and I was on medication for a year due to our break up and the aftermath that occured. All of 'our friends' stopped talking to me since I met them through him (incuding the one's that are moving in next door), At one point I even tried to kill myself by overdosing on my medication. I thought I was ok since I've been seing a therapist but him emailing me has brought everything back. Sorry for the long question. Any advise would be appreciated. Thanks I also tried to call the free government number they have available, but they don't seem helfpul. more

Resolved Question: Will the banks ever change.?

As a first time buyer, i went to the bank to arrange a mortgage, firstly, last year i would have had to pay 5.75% interest mortgage, at that time bank rate was 4.00% giving banks a 2.00% overall profit..apr This year bank rate at 0.5% cheapest mortgage rate i can get is 5.1% + a setup fee of £1000, +£450 valuation fee, that's with a 20% deposit. That makes the bank in effect more than doubling their profit margin.. Will someone tell me how the housing market will ever kick start when greedy banks just want to trouser money..Also if you had £100.000 in savings with the banks 12 months ago you got 5% interest approx £100 per week interest, Now that same £100,000 will get you 0.75 interest approx £15 per week.. Greedy ripoff B------- more

Voting Question: Need help with an accounting quiz?

Question 1 The term "junk bonds" describes bonds with: answers Low interest rates. Indefinite maturity dates. Low maturity values High risk Question 2 An operating lease: answers Creates an asset and a liability on the balance sheet. Is a form of off-balance sheet financing. Is always preferable to a capital lease Transfers title to the asset being leased. Question 3 A $1,000 bond that sells for 103 has a cost of: answers $1,003 $1,030 $1,300 $1,000 Question 4 On April 1, year 1, Quinn Corporation issues $40 million of 12%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. Interest expense on this bond issue reported in Quinn's year 1, income statement is: answers $4,800,000 $2,400,000 $3,600,000 $6,000,000 Question 5 A bond that is not secured is also known as: answers A sinking fund A mortgage A debenture A junk bond Question 6 Which of the following is an example of a contingent liability? answers A lawsuit pending against a restaurant chain for improper storage of perishable food items. The liability for future warranty repairs on computers sold durig the current period. A corporation's long-term employment contract with its chief executive officer. A liability for notes payable with interest included in the face amount. Question 7 On December 1, Year 1, Capital Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1. How much of the first payment made on December 31, Year1 represents interest expense? answers $2,400 $ 400 $2,304 $2,000 Question 8 On April 1, Year 1 Fiesta Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. The adjusting entry required on December 31, Year 1, related to this bond issue involves: answers Recognition of interest expense of $1,000,000. Recognition of interest expense of $500,000 A credit to Interest Payable of $2,000,000. A credit to Cash of $500,000. Question 9 Employers are required to pay all of the following on the wages paid to each employee except: answers Social security taxes Worker's compensation insurance Medicare taxes Health insurance benefits Question 10 The current balance sheet of Ventura reports total assets of $20 million, total liabilities of $2 million, and owners' equity of $18 million. Ventura is considering several financing possibilities in order to expand operations. What will be the effect on Ventura's debt ratio if Ventura's owner invests an additional $2 million to finance its expansion? answers The debt ratio will decrease from .1 (2/20) before to .0909 (2/22) after the additional investment. The debt ratio will decrease from 2/9 before to 2/11 after the additional investment. The debt ratio will increase from 20 before to 22 after the additional investment. Additional investment by owner will have no effect on the debt ratio. more

Voting Question: Please help calculate the following Morgage payment :O)?

Supposing you are planning to buy a home in near WSC selling for $ 600,000. Your plan is to make a down payment of 20% and finance the balance from a Friendly Bank at a Fixed Interest Rate of 5.5% over 30 years with monthly payments. "Please show how you arrived at your answer" Your monthly mortgage payments will be:Please show me how to calculate by hand for a business finnce class not by calculator on the web! Thanks in advance more

Voting Question: Figuring out what the monthly mortgage payment will be. Need Financial Expert!?

Supposing you are planning to buy a home in near WSC selling for $ 600,000. Your plan is to make a down payment of 20% and finance the balance from a Friendly Bank at a Fixed Interest Rate of 5.5% over 30 years with monthly payments. Your monthly mortgage payments will be? "Please show how you arrived at your answer, so I know how to do it next time" thanks so much! more

Resolved Question: Anyone successful at Principal Writedowns to Help Underwater Borrowers?

Here is a situation. The house was bought with a jumbo loan couple of years ago, with a second mortgage as well, 90% of the total value of home then. Now, the value of the house is 20% less than what it used to be two years ago. In effect, the Loan-To-Value is 112%. Also there is a significant curtailment of income. Was anyone else able to convince their lender to writedown the principal? What part of the second mortgage's principal was written down? What is the rate on the rest of the second mortgage?I am not asking you to judge, just want to know rules for a hypothetical case more

Resolved Question: Better to refinance with a 15, 20 or 30 year fixed?

Our home is currently mortgaged at 6.25% so with rates being so low, we want to refinance. We think we will be in our home for another 5 years at least and at that point we will either do some renovations/additions or move into a larger home. We can get a 15 year fixed rate mortgage for the same monthly mortgage we are currently paying. OR we can do another 20 or 30 year refinance, have our monthly mortgage drop a lot lower, and then use that money for improvements to the property to make it either easier to sell in 5 years or happier for us to live here in 5 years. If we knew we were going to be here in 15 years, I would definitely do the 15 year mortgage, but since we're not sure, is it better for us to do a 30 year and use the money to upgrade? Any thoughts? more

Voting Question: Hi Guys, Refinance the house, but couldn't (penalty is huge) please help and advise...?

Hi Guys, Hope someone could answer my question. I got my mortage last year in January(08). The interest rate I got (at that time the best) was 5.9% fixed for 5 years. Now, with the low interest rates, I am also thinking whether I could refinance my mortgage. However, the issue is the bank where I have a mortgage quoted the penalty as $20,000 if I change my product. I still have 4 years to go. Currently, I am paying about $1850 each month. I calculated and with the current interest rate (3.05%), I would be saving about 300-400 buck each month with the same amortization(biweekly/29 years). My balance is 3,07,000 and penalty is 20,000. The house is worth about 3,37,000(per 2009 assessment). I talked to my bank and they are not willing to refinance. Now, I am stuck for another 5 years, and looks like even if I want I couldn't get benefitted from the lower interest rates. Am I screwed, or is there still a light at the end of the tunnel? Very frustrated!!!By the way, I am living in Vancouver, Canada. more

Voting Question: We have a FHA Mortgage with 0 down. We have paid on our mortgage for 2 years. Can we refinance the FHA to low?

We'd like to refinance the FHA mortgage to a lower interest rate. Can we do this since we don't have 20% of the 30 year mortgage paid down yet? Any tips we should know about? more

Resolved Question: BF might lose his job, my BF has brain cancer- how do you go on?

We live slightly better then pay check to pay check. We have a mortgage + a 2 year old car we're paying off, credit cards and living expenses. My BF might be, at this time it is 99% accurate, his job this week. Very very unexpected. He is diabetic takes 2 insulin + test strips very expensive, mortgage, car, food. August 8th we had a small wedding planned, less then $ 4,000. I paid dress, purse + shoes only $ 71- so no lose there. I am under contract with DJ, fine I have money set aside to pay him. Same with priest. But wedding will be canceled. Thank god I have time to cancel restaurant. We can go to city hall, that's fine. But how do we live on one pay check that does not cover all our living expenses ? I can't benefit with the new lower interest rates on house because I have a mobil home, double wide with 3/4 acre property but my bank won't refinance a mobil home. My best friend of 20 years, has a 9 yr old child, has brain cancer- they gave her only 4 - 8 weeks to live. Nothing is going right, everything is falling apart and I don't know what to do. I can afford my next car payment and bills but shortly after that, that's it and I don't know how to get by. How do you survive ?my parents + father in law are deseased, Mom in law has small apt, my house is small. I can't rent out my house because private community doesn't allow it. more

Resolved Question: How was the bank bail out helping the economy?

Since the banks all gave their employees Bonuses instead of refinancing people's mortgages with lower interest rates and/or a longer loan term how was the bank bail out helping the economy. Some might say they should forgive a portion of the loan since the house isn't as valuable but there I would have to disagree because of the fact that in 10 years from now that house value may increase and the owner will profit from the sell of the house. I was explained before buying my house there was a possibility that my property value may decrease for a little while but over time there would be an increase in my property value. Why didn't others that bought houses take the time to talk to the lender and understand what a budget is and try to understand what living in your means meant? I mean I was approved by a sub prime lender for a $120,000 mortgage that honestly I knew I could not afford. It also came with a 12% interest rate. By going with my bank I took out a $79,900 mortgage and paid points, 20% down or $20,000 down payment, and got state bond money making my interest rate 4.99% Always better to shop around. Why wouldn't the banks cut the interest rate to 2% on these loans that the house is worth so much less? The banks need to be better regulated and managed. People need to take a class on what their financial situation really is and try to understand simple basic math. Why was the banks bailed out yet they fail to help out the tax payers that bailed them out? Shouldn't the banks be allowed to fail like any other business that fails to protect itself from foolish decisions made by management instead of being rewarding their errors with Bonuses? more

Resolved Question: Question about mortgage?

Is it possible to get around $60k mortgage with no money down right now? If not how much down payment are most banks requiring? And whats the current interest rate on a 20 year? more

Resolved Question: In which of the following situations you can expect multiple answers of IRR?

1. Why net present value is the most important criteria for selecting the project in capital budgeting? a. Because it has a direct link with the shareholders dividends maximization b. Because it helps in quick judgment regarding the investment in real assets c. Because we have a simple formula to calculate the cash flows d. Because it has direct link with shareholders wealth maximization 2. In which of the following situations you can expect multiple answers of IRR? a. More than one sign change taking place in cash flow diagram b. There are two adjacent arrows one of them is downward pointing & the other one is upward pointing c. During the life of project if you have any net cash outflow d. All of the given options 3. Which one of the following selects the combination of investment proposals that will provide the greatest increase in the value of the firm within the budget ceiling constraint? a. Cash budgeting b. Capital budgeting c. Capital expenditure d. Capital rationing 4. Who is responsible for the decisions relating capital budgeting and capital rationing? a. Chief executive officer b. Junior management c. Division heads d. All of the given option 5. What is a legal agreement, also called the deed of trust, between the corporation issuing bonds and the bondholders that establish the terms of the bond issue? a. Indenture b. Debenture c. Bond d. Bond trustee 6. __________ is a high-risk, high-yield bond rated below investment grade; while a/ (an) __________ bond has its interest payment contingent on sufficient earnings of the firm. a. A junk bond; income b. A subordinated debenture; mortgage c. A debenture; subordinated debenture d. An income bond; mortgage 7. __________ is a long-term, unsecured debt instrument with a lower claim on assets and income than other classes of debt; while a/(an) __________ bond issue is secured by the issuer's property. a. A subordinated debenture; mortgage b. A debenture; subordinated debenture c. A junk bond; income d. An income bond; junk 8. The value of the bond is NOT directly tied to the value of which of the following assets? a. Liquid assets of the business b. Fixed assets of the business c. Lon term assets of the business d. Real assets of the business 9. The value of a bond is directly derived from which of the following? a. Cash flows b. Coupon receipts c. Par recovery at maturity d. All of the given options 10. Which of the following is not the present value of the bond? a. Intrinsic value b. Fair price c. Theoretical price d. Market price 11. The current yield on a bond is equal to ________. a. The yield to maturity b. Annual interest divided by the par value c. Annual interest divided by the current market price d. The internal rate of return 12. A coupon bond pays annual interest, has a par value of Rs.1,000 matures in 4 years, has a coupon rate of 10%, and has a yield to maturity of 12%. What is the current yield on this bond is? a. 10.45% b. 10.95% c. 10.65% d. 10.52% 13. Which of the following is a characteristic of a coupon bond? a. Does not pay interest on a regular basis but pays a lump sum at maturity b. Can always be converted into a specific number of shares of common stock in the issuing company c. Pays interest on a regular basis (typically every six months) d. Always sells at par 14. Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation? (Comprehension) a. Par value b. Intrinsic value c. Market value d. Face value 15. The value of direct claim security is derived from which of the following? a. Fundamental analysis b. Underlying real asset c. Supply and demand of securities in the market d. All of the given options 16. _________ is equal to (common shareholders' equity/common shares outstanding). a. Liquidation value per share b. Book value per share c. Market value per share d. None of the above 17. Low Tech Company has an expected ROE of 10%. The dividend growth rate will be ________ if the firm follows a policy of paying 40% of earnings in the form of dividends. a. 4.8% b. 6.0% c. 7.2% d. 3.0% 18. High Tech Chip Company is expected to have EPS in the coming year of Rs. 2.50. The expected ROE is 12.5%. An appropriate required return on the stock is 11%. If the firm has a plowback ratio of 70%, what would be the growth rate of dividends? a. 6.25% b. 8.75% c. 6.60% d. 7.50% 19. In the dividend discount model, _______ which of the following are NOT incorporated into the discount rate? a. Real risk-free rate b. Risk premium for stocks c. Return on assets d. Expected inflation rate 20. Bond is a type of Direct Claim Security whose value is NOT secured by __________. a. Tangible assets b. Fixed assets c. Intangible assets d. Real assets more

Voting Question: Can I take out a separate loan to pay 20% down and avoid PMI on a conventional mortgage?

I have a loan for $170,000 and the private mortgage insurance is $135 a month (I had already put down 5% towards the house). Could I just take out a separate loan from my bank (presuming I can qualify) for a 30-year period at the same interest rate and use that to pay off another 15% on the value of the house to avoid the $133 PMI? Wouldn't this offset the cost of the reduction in equity and mean the elimination of the $133 monthly PMI payment without increasing costs anywhere else? Is this allowed? more

Resolved Question: Given a 30 yr mortgage, if you pay the monthly difference based on a 20 yr amortization would you pay the same?

I am trying to decide whether to take a 30 year or 20 year mortgage. The rates are the same at 4 3/4%. I am trying to figure if take the 30 year mortgage and pay extra principle each month equal to the difference between the 30 year and 20 year monthly payments, would the 30 year mortgage amortize the same over 20 years as the 20 year amortized mortgage? Is there more interest up front in a 30 year? Would I pay the exact same amount of money over 20 years? more

Resolved Question: MATH GENIUSES- PLEASE ANSWER :'(?

dont ask why im asking, dont put in a comment. just please answer correctly no guessing, thank you 1) jean earned $40 babysitting one weekend and spent 15% of her earnings. How much did she spend? 2) The attendance at school on friday was 551 students. this was 95% of the total enrolment. what is the total enrollment of the school? 3) What is the rate of discount if a tape deck regularly priced at $200 is sold for $175? 4) The suggested retail of a football is $65. during a fall sale discount of 15% was offered. What is the a) discount b) sale price of the football? 5) After receiving a discount of 20%, Kelly paid $48 for a baseball glove. what was the regular price of the glove? 6) Harry's comission is $450 when his total sales are $6000. what is the rate of comission? 7) In one week Mildred earned $875 and her rate of comission was 4%. what were her total sales for the week? 8) Amar sold goods valued at $15000. if the rate of commision was 6% what amount of money did he earn? 9) An article sells for $300. a buyer must also pay a 5% sales tax how much is the a) sales tax and b) total price of the article without any additional taxes? 10) If the list price on a pair of skates is $75 and the sales tax is 7%, calculate the cost 11) A jacket was regularly priced at $48 before it was put on sale at 20% off the regular price, What was the a) the sale price and b) the sales tax if the tax rate was 6%? 12) A man borrowed $2000 at a rate of 11% for a period of 2 years. how much a) interest did he owe and b) what was the amount due? 13) Amy deposited $350 in a bank that paid interest at a rate of 7%. how much interest did she collect after a) 6 mos b) 2 years? 14) Calculate the simple interest payable on a home mortgage of $60, 000 over 25 yrs if the rate of interest is 11.5% PLEASE ANSWER IN 1) - 2) - form, PLZ thanx you! more

Resolved Question: What home mortgage option would you recommend?

I am buying a home. I will put down an offer for $65,000. I make $30,000 a year and have $19,000 saved up towards the home. I have a credit score of 725. I was planning on getting a 15 yr mortgage, and putting 20% down, basically because I want as little debt as possible. Today, I was talking with someone who recommended putting down as little as possible (FHA 3% even) and taking out a 30 year mortgage. He said I could use the money I would have otherwise spent on the 15yr, 20% down mortgage to invest, thus making more money than i will pay extra in interest. While his thinking made sense, I just can't be comfortable with that much debt. I am familiar with other forms of investing. He also reminded me most 30yr mortgages let you pay more than your principle, and I would have more "cushion" this way. It just seems like a better idea to get the best interest rate possible (about 4.7% for a 15yr, as opposed to 5.1% for a 30 yr). With the 20% down I would also avoid mortgage insurance. I know i CAN afford the 15yr, 20% down payment, but should I go this route? Thank you! more

Resolved Question: What would be the best loan option?

I am buying a home. I will put down an offer for $65,000. I make $30,000 a year and have $19,000 saved up towards the home. I have a credit score of 725. I was planning on getting a 15 yr mortgage, and putting 20% down, basically because I want as little debt as possible. Today, I was talking with someone who recommended putting down as little as possible (FHA 3% even) and taking out a 30 year mortgage. He said I could use the money I would have otherwise spent on the 15yr, 20% down mortgage to invest, thus making more money than i will pay extra in interest. While his thinking made sense, I just can't be comfortable with that much debt. I am familiar with other forms of investing. He also reminded me most 30yr mortgages let you pay more than your principle. It just seems like a better idea to get the best interest rate possible (about 4.7% for a 15yr, as opposed to 5.1% for a 30 yr). With the 20% down I would also avoid mortgage insurance. I know i CAN afford the 15yr, 20% down payment, but should I go this route? Thank you! more

Resolved Question: Mortgage with IRS Installment Plan?

I had one year a couple of years ago with a large tax debt, that I was unable to pay, so setup an installment plan with the IRS which I have been diligently paying and currently owe $8,000. I will be buying a house shortly and have to make a couple of decision. I have zero revolving debt one small medical loan and a nominal car lease. I have enough cash to pay a 20% down payment on the house (to avoid PMI) and hope to get the most favorable interest rate. However, can I get a mortgage while having a debt / installment plan to the IRS or will I be forced to pay it off to obtain the mortgage and thus not have the 20% deposit. more

Resolved Question: Do you think we can afford to buy a first home?

My partner is looking to buy a house. He wants to put an offer in for $55,000 on a particular house, and is willing to pay up to $65,000. (house listed at $70,000. Bank owned, Michigan.) He makes about $30,000 a year after taxes ($2,500 a month). He pays $150 a month for car insurance and cell phone bill. Other then that, no debt, and he currently lives with his parents. He has $19,000 saved up solely for purchasing a home (about $8,000 otherwise, 23 yrs old), and has a good credit score. He has been approved for a $100,000 mortgage. He wants to put down 20% (11k-13k), and he wants a 15 year mortgage, and hopes to secure an interest rate around 5.0%. This particular home's taxes are about $2,500 a year (=$210 month). Neither of us have owned a home, but we are guessing we will pay around an additional $300 a month in utilities(?). Not to mention home insurances. We both live fairly frugally. I am still in college, owe $3,000 in student loans ($50 a month min payment). I expect to accumulate another $10,000 : / of student debt in two years time. I make about $700 a month. I pull my own weight as far as personal expenses. I'm kind of unsure about my career, (business, but idk what) so I'm not going to bet on making much more than minimum wage for a couple years. I currently have little sayings due to college expenses (about $2,000), but live with my parents now and have no other bills. His name will be on the title, with his parent's co-signing. If they accept the offer, we hope to spend a few months painting and such. Eventually I will move in. (I know, not married, not engaged, but we have been together 6 years and are committed, and just want to wait till we are older to get married.) He is buying the home, and probably wouldn't be in so enthusiastic and intent on doing so if the markets weren't as buyer-friendly as they are now. He will pay the mortgage, taxes, etc, and I am hoping to help out on groceries and some furnishings, maybe a utility bill. The house was built in 1986, and has a new roof, water heater, AC,and furnace, and is updated with the exception of the kitchen. The windows are in good shape, and there is nothing we determined would need immediate repair per our inspection. We would hope to eventually remodel the kitchen, when we are financially stable. Also, we want to paint. As neither of us have furniture, we will need to eventually furnish the whole house, but will need to buy the basics to move in, as well as household items and appliances. So much to buy! We won't be having kids any time soon. Wow that was long. Do you think we can afford the house, the whole thing? If not, why, and what do you think we could afford? Thank you more

Resolved Question: Finance help on finding a payment?

Hello, I had a tough question recently in class that I couldn't figure out how to do on my financial calculator (HP10BII) Here's the problem: You are buying a house for $150,00 with a 10% down payment and a fixed-rate mortgage for the remainder at 8% for 20 years with MONTHLY payments. How much interest is paid on the 20th payment? Here's what I do and where I get stuck... 150,000 (.1) = 15,000 150,00 - 15,000 = 135,000 which is my PV (Present Value) now I have my interest at 8%/12 = 0.667 (Interest) and for my monthly payments it is 20x12 = 240 (# of payments) Now I know there some function to figure out how much interest is paid on the 20th payment but I don't know what I enter into the calculator to get it. So for a run-down here it what I entered into my calculator -135,000 [PV] 0.667 [i] 240 [N] and now I'm stuck Any help is appreciated! more

Resolved Question: Can we afford this house?

Resolved Question: Finance help on find a payment!?

Resolved Question: Do I have what it takes to become a credit counselor?

I moved from Delaware where I was employed in the credit card industry in fraud prevention and authorizations to Huntsville, Alabama last year. I haven't found a job that suits me because my main skill set is in the banking industry and Huntsville doesn't have many opportunities at all in that industry. My husband is a software engineer so we moved down for his career. I'm thinking about becoming a credit counselor for the following reasons. I'm a walking encyclopedia of lending regulations, practices and credit reporting practices. Basically, I know the industry inside and out and I still keep up with changes in the banking industry on a regular basis. When I worked authorizations I'd often encounter people who were totally maxed out on multiple accounts, had credit scores in the toilet, yet would call wanting permission to go over the limit on their card to buy some ridiculously expensive item. We were technically supposed to approve those requests but I felt so bad that I was enabling the customer to continue self destructive behavior I would often decline these requests and gently try to make the customer aware of what they were doing. These were people who were really in bad; not customers who were paying on time and in relatively good standing. My general rule was if someone is maxed out on more than one card, is barely making minimums, has a credit score under 600 and recent or chronic delinquency on any account I would say no unless it was a dire emergency like a car repair or a medical bill. It was basically what I could squeak by with doing. One time I had a rather long conversation with a woman DEEP in debt who actually told me I would make a good credit counselor. I was thinking about that recently and it sounds like a fulfilling career. I know that debt is an addiction for some people so I felt like I was being forced to feed people's addictions when I worked in the industry. It's like giving scotch to chronic alcoholic, no good can come of it. I'm also very good at managing my own finances. My husband and I are living on one income as a couple in our early 20's with student loan debt yet we do manage our expenses well enough to easily afford our own home. We've taken excellent care of our credit to qualify for good interest rates on all of our debt. Ironically our mortgage has the highest interest rate at 6.25% fixed; our consumer revolving debt rates are 5.5% or lower. I grew up low income and my parents avoided non-mortgage debt like the plague! I think I could set a good example for clients as a credit counselor; plus I'm incredibly nice but not afraid to tell it like it is. Does this seem like a good basis for a potential credit counselor? more

Resolved Question: Do you think I should refinance into HELOC with a variable rate from a fixed 30-year rate? Please see details.?

I have a condo that I bought 2 years ago, 80/20 deal. The 1st mortgage is a 6.5% 5-yr. arm, and 2nd is 9.75% 30 yr. fixed. I have an option of refinancing the 2nd loan into a HELOC with a 5.36% variable rate. I realize it is tied to Fed prime rate, and I was wondering if it would be a smoart move to go for this percentage, and possibly lock the Heloc in some time? Any help would be greatly appreciated! p.s. I am actually trying to sell my condo- what are the predictions, do you think market is going to pick up? If I sell it now, I would have to pay 10-15K out of pocket, which would be hard for my budget... Id market going to get better any time soon? more