Archive for October 10th, 2007
Kids education
- Get involved with ur child’s homework by helping them with it or even asking them to explain it to u. Kids gain motivation when u show excitement about what they have learned.
- Get involved in what they r doing inside classroom as well.
- Communicate with ur child’s teacher by going to parent-teacher conferences. They can tell if need help in certain areas.
- Give ur child little boost by providing edu.tools like extracurricular clubs (math club or book club), computer prog’s that integrate education into them.
- If u’ve just read 5books to ur child, & he’s demanding n06, tell, “I know u love our special reading time, but now I need to sleep.”
- Write down an event u’ve planned for ur child on calender, show her & make sure to honor that commitment.
- Have ur child list the qlty’s they’re looking for in a friend. Encourage her to think of children she knows that possess these qlty’s. Ask her if she is showing these qlty’s to others. Determine if ur child is exhibiting behaviors that may be preventing them from making potential friends.
- Make sure meals include all food groups to ensure they are getting plenty of vits.
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House terms
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Mortgage: Legal contract that if u dont pay loan back with interest, lender can sell ur house to get money back.
- Fixed rate mortgage: G0 for lowest interest rate u can get. Only things that will change will be property tax, any insurance payments included in ur mthly payment. 30yr fixed rate: Easiest to qualify. Best option if u will stay in home for many yrs or else it is the most expensive type. Gives tax & interest deductions, so great advge. 15/20yr fixed rate: Quick pay off, higher equity, lower interest rate but high mthly payment.
- Adjustable rate mortgage(ARM): Interest rate changes based on market rates & economic trends. Offered initial interest rate that is 2-3% points lower than fixed rate but cant assure u how payment is going to be in yrs to come. If u dont expect to be in home for many yrs, u can go for this. U can choose terms of loan from 6mths-several yrs. ex, 3/3ARM means initial rate would stay same for 1st 3yrs & would adjust every 3yrs from then. Caps specify how much ur interest can go over life of loan.
- Balloon mortgage: Interest rate lower than fixed rate mortgages, stays same for 5-7yrs & then requires a balloon/final payment.
- Down payment: Money u pay upfront reduces amount of money u’ve to finance & monthly payments.
- Principal: Money u’re financing, i.e. borrowing after ur down payment.
- Interest: % of total amount u’ve to pay for loan to lender.
- Equity: Money u already paid.
- Pequalify: Lender estimates what u can afford based on ur income level, debt & credit info.
- Pre-approval: Lender does indepth analysis of ur financial situation
- Monthly payment: mortgage + property tax + Insurance + PMI(private mortgage Insurance) if u dont make at least 20% down payment.
- APR(Annual percentage rate): Average annual finance charge(fees, other loan costs) divided by amount borrowed. It is slightly higher than interest rate as incl’s other fees that loan carries with it. It allows u compare actual loan costs.
- Closing costs: Fees for work done for closing + taxes + insurance. Higher if live in high tax area. Depends on fee scales of realtors, lenders, attorneys. U typically pay 3-6% of total loan. U can negotiate with seller to pay some of the closing costs.
- Processing fee: Charged by lender to cover initial costs for loan processing.
- Appraisal: Comparing property value with similar properties in same neighborhood.
- Discount points: Buying them is buying down the interest rate u’ll be paying. 1point = 1%of loan amount. These points r paid when loan is approved or at closing.
- Foreclosure: Is a legal process where lender takes ur home, sells to get money.
- Extra payments:Go directly to principal, so u can cut ur mortgage down tremendously.
- Bi-weekly payments:Builds extra payment each year, thus shortens loan life.
- Ways to save money: Negotiate with lender for best rates, choose right type of mortgage, make extra payments & bi-weekly payments, avoid PMI, make sure paying points will save u money.
- Escrow: Legal arrangement where asset is given to escrow agent to be held in trust till conditions of contract r met, like payment of purchase price.
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