Considerations Surrounding Major Financial Assets
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Considerations Surrounding Major Financial AssetsAssessment A: Researching Interest Rates
Summarize the information on interest rates.
There are many types of interest rate deal, each with different pros and cons. What's right for you depends on your individual circumstances. A fixed rate is a loan or mortgage with an interest rate that will remain at a predetermined rate for the entire term of the loan. A veriablle rate also called a adjustable rateis a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. The loan may be offered at the lender's standard variable rate/base rate
Assessment B: Decision Making Process
Identify the steps in the decision making process for major purchases.
Step 1a: What do I need? Replace car?
Step 1b: What do I need? Keep car?
Step 2: What can I afford?
Step 3a: New car?
Step 3b: Used car?
Step 4: Decide how to finance loan
Step 5: Compare based on attributes, price
Step 6: Identify alternatives
Step 7: Fix mistakes on credit report
Assessment C: Considerations Surrounding Major Financial Assets
Summarize the 6 main steps in buying a house.
There are 6 steps with buying a home the first is you need to make sure all of your finances are in order this includes fix and check credit report and lower any loans you may have. Next, get a license real estate agent to help you find a home and suggest and offer. Once you have placed an offer and singed a contract you need to have the home inspected, make sure the home has no defects also checking the foundation, electrical, plumbing etc. Then you need to set financing options whether it is through your own bank or other sources. Finally you and the seller to come to term with a closing date and all closing cost. In this step you need to make sure you have your home title and insurance.