UGBA 196 Final
What is a default rate of interest? - correct answer -accelerated rate of interest (28-35%) typically
charged on your credit blance as a penalty if issuer didn't receive at least the minimum payment by the
due date and time and your payment isn't honored by your banks
-underpayment or missing a payment, offends bank
-overdraft fees
How much REIT pay in order to not be taxed on the corporate level? - correct answer -as long as it pays
out 90% or more of its income than it pays no tax corporately
When can you file for Social Security? Medicare? - correct answer -can file early at age 62, but not for
medicare
-medicare at age 65
What is the function of multiple mortgages? - correct answer -another loan against property; increase
interest in 3-5 years
-get a 2nd mortgage to cover the rest of the down payment
-the first and second mortgage can be refinanced into a single loan
-second mortgage is riskier b/c doesn't get paid until first mortgage gets paid
What happens if downpayment in equities isn't paid? - correct answer -20% downpayment usually
-may have to buy private mortgage insurance
-usually interest is 1-1.6% of loans
-lots of losses b/c insuring loans
What should you do if you are thinking about adding money to a stock? - correct answer -set a target
price for a sotck you hope it will reach
-make decision if you want to hold ia ny longer or if you want to sell it
, What is a subprime mortgage? - correct answer -some lenders will lend 100% of the payment
Why are REIT best owned in an IRA account? - correct answer -REIT don't pay taxes unless they
distributed 90% of its income
-can compound for many years and don't pay taxes/interest
What do you do if you think market rates are too risky or too high? - correct answer -HOLD ON TOO
MONEY, nothing wrong with that
What is the most important in factor in purchasing real estate? - correct answer -LOCATION LOCATION
LOCATION
What happened during the housing boom? - correct answer -home loans were based on inaccurate and
fraudulent information
What does homeowners insurance cover? - correct answer -covers house as well as its contents
What is tax like if you own a rental real estate? - correct answer -you own profit and that profit is taxable
What is carfax? - correct answer -last online stop for a used car should he this
-pay 19.99 and it will track by vehicle ID number if a car was every reported stolen, salvaged, etc.
-if it is, DO NOT get it
What's the price to earnings ratio? - correct answer -divide market price of a share by EPS
-tells us that the market is valuing these shares at a certain amount of time what a single share earned in
profits the prior year
-says how much investors are willing to pay for each dollar of earnings
-MOST IMPORTANT: tells what it is now or going forward, not about yesterday
What happens if you own rental property, what can get taxed? - correct answer -you borrow money to
buy, you can tax deduct interest but NOT loan/principle
What is a default rate of interest? - correct answer -accelerated rate of interest (28-35%) typically
charged on your credit blance as a penalty if issuer didn't receive at least the minimum payment by the
due date and time and your payment isn't honored by your banks
-underpayment or missing a payment, offends bank
-overdraft fees
How much REIT pay in order to not be taxed on the corporate level? - correct answer -as long as it pays
out 90% or more of its income than it pays no tax corporately
When can you file for Social Security? Medicare? - correct answer -can file early at age 62, but not for
medicare
-medicare at age 65
What is the function of multiple mortgages? - correct answer -another loan against property; increase
interest in 3-5 years
-get a 2nd mortgage to cover the rest of the down payment
-the first and second mortgage can be refinanced into a single loan
-second mortgage is riskier b/c doesn't get paid until first mortgage gets paid
What happens if downpayment in equities isn't paid? - correct answer -20% downpayment usually
-may have to buy private mortgage insurance
-usually interest is 1-1.6% of loans
-lots of losses b/c insuring loans
What should you do if you are thinking about adding money to a stock? - correct answer -set a target
price for a sotck you hope it will reach
-make decision if you want to hold ia ny longer or if you want to sell it
, What is a subprime mortgage? - correct answer -some lenders will lend 100% of the payment
Why are REIT best owned in an IRA account? - correct answer -REIT don't pay taxes unless they
distributed 90% of its income
-can compound for many years and don't pay taxes/interest
What do you do if you think market rates are too risky or too high? - correct answer -HOLD ON TOO
MONEY, nothing wrong with that
What is the most important in factor in purchasing real estate? - correct answer -LOCATION LOCATION
LOCATION
What happened during the housing boom? - correct answer -home loans were based on inaccurate and
fraudulent information
What does homeowners insurance cover? - correct answer -covers house as well as its contents
What is tax like if you own a rental real estate? - correct answer -you own profit and that profit is taxable
What is carfax? - correct answer -last online stop for a used car should he this
-pay 19.99 and it will track by vehicle ID number if a car was every reported stolen, salvaged, etc.
-if it is, DO NOT get it
What's the price to earnings ratio? - correct answer -divide market price of a share by EPS
-tells us that the market is valuing these shares at a certain amount of time what a single share earned in
profits the prior year
-says how much investors are willing to pay for each dollar of earnings
-MOST IMPORTANT: tells what it is now or going forward, not about yesterday
What happens if you own rental property, what can get taxed? - correct answer -you borrow money to
buy, you can tax deduct interest but NOT loan/principle
