HUMS 202 Lecture Notes - Lecture 10: Refinancing, Home Equity Line Of Credit, Annual Percentage Rate
1 Nov 2016
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Document Summary
Renters insurance: generally cheaper than homeowners insurance, covers liing expenses if you are unable to live in your apartment bc of fire or other covered disaster. Equity-value of home minus amount you own on it: can borrow against equity for many purposes, homes generally increase in value over time, home is yours once mortgage is paid in full. A mortgage is a loan to purchase a home: homeownership may reduce amount of income tax you pay, since mortgage interest and property taxes are tax deductible, can pass home on to family members. Disadv: responsbiel for additional costs of. Steps to buying a home: step 1: determine if you are ready to buy a house. Downpayment-the more you have for a down payment, the less money you will need to borrow and the less money you will pay in interest over the life of the loan. Principal-part of your monthly payment used to pay back money you borrowed.
