Foolproof Module 10 notes
2025 latest update(100%
accuracy)
- answer Many adults who get a mortgage and buy a home don't have
any idea what they are doing.
They waste tens of thousands of dollars because they don't know the
simple truths you will be learning here.
A lot of high school students' lives are hurt because their parents make
bad home decisions.
What you learn here can help the adults you respect and care about.
Here are seven good reasons to buy a house: - answer - You're settled in
a town and like it.
- You're successful in your job and think you have a good future with your
company.
- You have a settled home life.
- Your credit is in good shape.
- You do not feel stressed financially. Even though you may not make a lot
of money, you do make enough to be able to save some.
- You have a good bit of money you can use for a down payment.
- The housing market in your town is a "buyers market": Prices are low for
buyers.
House Poor: You thought you could afford the home because you were
preapproved for the loan. - answer - But you can barely afford to make
the payment each month.
- You have no money left for a better car.
- You can't afford to ever take a vacation.
- You can't save any money. You need every dime just to pay bills.
, Collateral: Something you own worth money that guarantees you will pay
back the loan. Don't pay the loan, and you normally lose your collateral. -
answer - An example of collateral: When you buy a car, you normally use
the car as "collateral" to guarantee you will pay back the car loan.
- Stop paying and you will lose your car.
- Another example of collateral: A place you buy.
- Homes are used for collateral on your home loan.
A Home Mortgage: A loan used to buy real estate. The property itself is
used as collateral to guarantee you will pay back the loan. - answer Stop
paying your mortgage payment and you will most likely lose your real
estate.
Mortgage Insurance: An insurance policy that says the insurance company
will pay your mortgage if you are unable. - answer Qualifying for
mortgage insurance makes it much easier for you to get a mortgage loan.
A Lender: - answer The company or person who actually puts up the
money for a mortgage.
The Mortgage Company: - answer The company that gave you the loan.
A Mortgagor: - answer That's you! You are the person borrowing money.
The Borrower: - answer That's you, too. When you get a mortgage you
have definitely borrowed money!
Mortgage Default: Short definition: - answer You're in trouble. You're
failing to pay your mortgage payments.
Loan or Mortgage Fraud: - answer When you lie on your loan application
you are committing loan fraud.
2025 latest update(100%
accuracy)
- answer Many adults who get a mortgage and buy a home don't have
any idea what they are doing.
They waste tens of thousands of dollars because they don't know the
simple truths you will be learning here.
A lot of high school students' lives are hurt because their parents make
bad home decisions.
What you learn here can help the adults you respect and care about.
Here are seven good reasons to buy a house: - answer - You're settled in
a town and like it.
- You're successful in your job and think you have a good future with your
company.
- You have a settled home life.
- Your credit is in good shape.
- You do not feel stressed financially. Even though you may not make a lot
of money, you do make enough to be able to save some.
- You have a good bit of money you can use for a down payment.
- The housing market in your town is a "buyers market": Prices are low for
buyers.
House Poor: You thought you could afford the home because you were
preapproved for the loan. - answer - But you can barely afford to make
the payment each month.
- You have no money left for a better car.
- You can't afford to ever take a vacation.
- You can't save any money. You need every dime just to pay bills.
, Collateral: Something you own worth money that guarantees you will pay
back the loan. Don't pay the loan, and you normally lose your collateral. -
answer - An example of collateral: When you buy a car, you normally use
the car as "collateral" to guarantee you will pay back the car loan.
- Stop paying and you will lose your car.
- Another example of collateral: A place you buy.
- Homes are used for collateral on your home loan.
A Home Mortgage: A loan used to buy real estate. The property itself is
used as collateral to guarantee you will pay back the loan. - answer Stop
paying your mortgage payment and you will most likely lose your real
estate.
Mortgage Insurance: An insurance policy that says the insurance company
will pay your mortgage if you are unable. - answer Qualifying for
mortgage insurance makes it much easier for you to get a mortgage loan.
A Lender: - answer The company or person who actually puts up the
money for a mortgage.
The Mortgage Company: - answer The company that gave you the loan.
A Mortgagor: - answer That's you! You are the person borrowing money.
The Borrower: - answer That's you, too. When you get a mortgage you
have definitely borrowed money!
Mortgage Default: Short definition: - answer You're in trouble. You're
failing to pay your mortgage payments.
Loan or Mortgage Fraud: - answer When you lie on your loan application
you are committing loan fraud.
