| A | B |
|---|
| Housing | largest personal expenditure; 1/3 of monthly budget |
| Lease | Legal contract between tenant and landlord specifying the responsibilities and rights of both |
| Tenant | Person who rents the property |
| Landlord | Owner of the rental property |
| Security Deposit | An advance payment to cover anything beyond normal wear and tear on the rental unit |
| Rent | Cost of using someon else's property |
| Utilities | electricity, water, garbage |
| Home ownership | buyer purchased a housing unit as property |
| Equity | Amount a home is worth minus the amount you owe on it |
| Mortgage | Amount borrowed to purchase a home; 90% buyers use |
| Collateral | Item promised to lender if borrower does not pay back loan; for home mortgages it's usually the home |
| Down Payment | Amount of money (usually 10-20%) paid at time of purchase |
| Purchase Price | Amount paid for home; recommended 2 1/2 times income or less |
| Amenities | Features of property like utilities, internet, fitness room |
| Spending plan | Financial statement used for money management and tracking income and expenses |
| Property manager | Person hired by owner to collect rent, maintain property, find/screen and respond to tenants |
| Application Form | Document used to determine if a person's credit history, financial stability and references make them a good rental candidate |
| No-lease agreement | Month-to-month agreement not in writing |
| Renter's Insurance | Protects the tenants' personal belongings when renting from a landlord |
| Homeowner's Insurance | Protects property and personal possessions of the homeowner |
| Fixed-rate Mortgage | Interest rate and monthly mortgage payments reme the same for the entire life of the loan |
| Adjustable Rate Mortgage | Interest rates, and monthly payments, change throughout the life of the mortgage |
| Interest Rate | Amount the bank charges to use their money |
| Mortgage Term | length, or number of years, it will take to repay the mortgage |
| Principal | Amount you owe on a mortgage after making a payment |
