FHCE 2100 Study Guide - Midterm Guide: Genetic Testing, Emotional Security, Federal Housing Administration

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 2100
• Professor: Carswell

Document Summary

Partly due to herding behavior (buying big houses because others were: since start of recession, 47% claim their house is worth less than it was. Rent or buy: 81% of current renters say they would like to buy a house at some point, 81% of people agree that buying a home is the best long term investment. Housing affordability index: definition: the relation of a consumer"s housing costs to available resources, formula: median family income divided by annual income needed to buy an average house (with 20% down and conventional mortgages) 110% of income necessary to qualify for an 80% loan. Costs of housing: one-time or initial costs, down payment (20% for mortgage, opportunity cost of down payment, closing or settlement costs, recurring costs, monthly mortgage payments (piti, principal what you borrowed. Interest the cost of borrowing (finance charge: taxes support of government.