amount of coverage, job status, health status.
Homeowner's Insurance
- covers the contents, the building, and liability
related to your property.
- Comprehensive Insurance covers more than Broad.
- Five main factors that determin the cost: Replacement cost
Location, Coverage, amount of deductible, available
discounts.
-Use Charts!
Lesson 3: Mortgages
rate x mortgage paymentP / 1000 = monthyl payment
owners equity(how much you own) vs. unpaid balance(how much you owe)
Amortization - total length of time (usually in years) it takes to pay a mortgage in it's entirety.
Lesson 4: Mortgage Spreadsheets
Mortgage = purchase price - down payment
Intrest on the unpaid balance:
Inerest = (intrest rate x previous unpaid balance)/ 12
Principal = payment - interest
Unpaid Balance = previous unpaid balance - principal
Owner's Equity = previous owner's equity + principal
Lesson 5: Initial Costs in Purchasing a Home
The larger the down payment, the less your home will cost in the long run.
Land transfer Tax: On the first 30 000 nil
next 60 000 0.5%
next 60 000 1.0%
Rest of the cost 1.5%
In this lesson you are basically adding up all the costs to move into a new house and adding on the land transfer taxes.
Lesson 6: Affordable Housing
Gross Debt Service Ratio - financial institutions state that house expences should not exceed 32% of your gross income.
Two factors that influence how much people are willing to spend on homes...income, and cash reserves (assests)
Monthy Mortgage Payment+Monthy Property Taxes+Monthly Heating
________________________________________________________ x 100
Gross monthy income
