Economics

FROM TODAY!!!!

TEST TOMORROW... 

BRING:

• Make sure you bring your copied notes ( in your handwriting)
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FIXED RATE

Your interest rate does not change

VARIABLE RATE

(AKA) flexible rate [AKA. Also known as]

            Interest rate can change at any moment

GRADUATED PAYMENT

You pay more and more each year… The costs gradually go up every year.

            1^st-5^th     year 500

            6^th-10^th   year 600

            11^th-15^th year 700

            16^th-20^th year 800

            21^st-25^th year 900

            26^th-30^th year 1,000

BALLOON NOTE

There is a huge payment at the end of the loan (last payment)

PRINCIPLE

Original amount of the loan (Principle, interest, taxes, insurance)

HELPS PEOPLE GET LOW INTEREST LOAN

            FHA (Federal Housing Administration) Low-income people, good citizens

VA (Veterans Administration) Help people from the military

SECURE LOAN

            You must put collateral up for a loan

RENTING

LANDLORD

·       Owns the building

·       Has responsibility to supply with heat, running water, bathrooms that work, clean, safe environment, smoke detectors work,

TENANT

Person who rents

YOUR TWO DUTIES

·       Pay your rent on time

·       Take care of the property

SECURITY DEPOSIT

·       Money to put down to pay for damages for when you move out.

·       Usually $500 or the first month’s rent

·       It is not apart of rent… when you move out... the landlord will look over the house to see if you damaged anything... they will use that money to fix damages… they will give you the money they did not need to fix things back.

·       When you rent make sure you walk through the apartment and inspect damages.