Friday, September 28, 2007

Life Insurance

Issue Rate x Policy
--------------------------- + 75 = Annual Premium

1000

Factors that affect life insurance smoking status, age, gender,


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











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