Lý thuyết tài chính - Making automobile and housing decisions

PFIN4Making Automobile and Housing Decisions 5Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY2Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Design a plan to research and select a new or used automobile2 Decide whether to buy or lease a car3 Identify housing alternatives, assess the rental option, and perform a rent-or-buy analysis4 Evaluate the benefits and costs or homeownership and estimate how much you can afford to pay for a home5 Describe the home-buying process6 Choose mortgage financing that meets your needsLEARNING OUTCOMESPFIN4 | CH5Guidelines for Purchasing Decisions3Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Research purchase thoroughly considering the market and the personal needsBase the selection on the needsNegotiate the best price and arrange financing on favorable termsUnderstand all the terms of the sale before signing the contractMaintain the purchase and make necessary changes promptlyPFIN4 | CH5Factors That Affect Affordability4Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Amount of down paymentSize of the monthly loan paymentOperating costsType of vehicleGas, diesel, or hybridNew or usedSize, body style, and featuresOther considerationsTrading in/selling, fuel economy, safety measuresPFIN4 | CH5Purchase Transactions5Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Negotiating priceSticker price - Manufacturer’s suggested retail priceKey to negotiating a good price is knowing the dealer’s cost for the carClosing the dealSales contract: Agreement to purchase an automobile that states the offering price and all conditions of offerWhen signed by the buyer and seller, the contract legally binds them to its termsPFIN4 | CH5Lease6Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Arrangement in which the lessee receives the use of an asset in exchange for monthly paymentClosed-end leaseOpen-end leasePFIN4 | CH5Variables Affecting Monthly Lease Payment7Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Capitalized costPrice of a car that is being leasedResidual valueRemaining value of a leased car at the end of the lease termMoney factorFinancing rate on a leaseLease termLease period as mentioned in the contractLease versus Purchase Analysis8Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performed to compare the differences between the total costsWhen the lease ends, the lessee can:Return the carPurchase the carPFIN4 | CH5Housing Prices and the Recent Financial Crisis9Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Analyze the history of housing pricesForeclosures: Lenders attempt to recover loan balances from borrowers who have quit making payments by forcing the sale of the home pledged as collateral PFIN4 | CH5Types of Housing Units10Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Capitalized costPrice of a car that is being leasedResidual valueRemaining value of a leased car at the end of the lease termMoney factorFinancing rate on a leaseLease termLease period as mentioned in the contractTypes of Housing Units11Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Cooperative apartment (co-op)Apartment in a buildingin which each tenant owns a share of the nonprofit corporation that owns the buildingRental unitsRange from duplexes, fourplexes, and single-family homes to large, high-rise apartment complexes containing several hundred unitsBenefits of Owning a Home12Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Security and peace of mindTax shelterInflation hedgePFIN4 | CH5Types of Costs to be Considered13Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Down payment: Portion of the full purchase price provided by the purchaser when a house or other major asset is purchasedLoan-to-value ratio: Maximum percentage of the value of a property that the lender is willing to loanPrivate mortgage insurance (PMI): Policy that protects the mortgage lender from loss in the event the borrower defaults on the loanPFIN4 | CH5Types of Costs to be Considered14Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mortgage points: Fees charged by lenders at the time they grant a mortgage loanClosing costs: Expenses that borrowers pay when a mortgage loan is closed and they receive title to the purchased propertyMortgage paymentsPFIN4 | CH5Types of Costs to be Considered15Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Property taxes: Levied by local governments on the assessed value of real estate for the purpose of:Funding schoolsLaw enforcementLocal servicesHomeowner’s insuranceRequired by mortgage lenders and covers the replacement value of a home and its contentsMaintenance and operating expensesPFIN4 | CH5Home Buying Process16Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Real estate short saleSale of real estate property in which the proceeds are less than the balance owed on a loan secured by the property soldMultiple Listing Service (MLS)Comprehensive listing of properties for sale in a given community or metropolitan areaHome Buying Process17Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Contingency clauseMakes the agreement conditional on factors such as the availability of financing, property inspections, or obtaining expert adviceReal Estate Settlement Procedures Act (RESPA)Requires lenders to give potential borrowers a government publication describing the closing processRequires lenders to provide clear, advance disclosure of all closing costs to home buyersSources of Mortgage Loans18Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mortgage loansSecured by the propertyMortgage bankersFirm that solicits borrowers, originates primarily government-insured and government-guaranteed loans, and places them with mortgage lendersMortgage brokersFirm that solicits borrowers, originates conventional loans, and places them with mortgage lendersPFIN4 | CH5Types of Mortgage Loans19Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Fixed-rate mortgageRate of interest and the monthly mortgage payment are fixed over the full term of the loanAdjustable-rate mortgage (ARM)Rate of interest is adjusted based on market interest rate movementsFeatures of ARM20Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Adjustment periodPeriod of time between rate or payment changesIndex rateBaseline index rate that captures interest rate movementsMarginPercentage points a lender adds to the index rate to determine the rate of interestPFIN4 | CH5Features of ARM21Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Interest rate capLimit on the amount that the interest rate can increase each adjustment period and over the life of the loanPayment capLimit on the monthly payment increase that may result from a rate adjustmentPFIN4 | CH5ARM22Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Negative amortizationPrincipal balance on a mortgage loan increases because the monthly loan payment is lower than the amount of monthly interest being chargedConvertible ARMAllows borrowers to convert from an adjustable-rate to a fixed-rate loanTwo-step ARMHave two interest rates - one for the first 5 to 7 years of the loan, and another for the remaining term of the loanPFIN4 | CH5Mortgage Payments Options23Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Interest-only mortgageRequires the borrower to pay only interestGraduated-payment mortgageStarts with unusually low payments that rise over years to a fixed paymentGrowing-equity mortgageFixed-rate mortgage with payments that increase over a specific periodExtra funds are applied to the principal so that the loan is paid off quicklyMortgage Payments Options24Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Biweekly mortgagePayments equal to half the regular monthly payment that are made every two weeksBuydownFinancing made available by a builder or seller to a potential new-home buyer at well below market interest ratesConventional, Insured, and Guaranteed Loans25Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5Conventional mortgageOffered by a lender who assumes all the risk of lossFederal Housing Administration (FHA) mortgage insuranceOffers lenders mortgage insurance on loans having a high loan-to-value ratioIntent is to encourage loans to home buyers who have very little money available for a down payment and closing costsVA loan guaranteeOffered by the U.S. Veterans Administration to lenders who make qualified mortgage loans to eligible veterans of the U.S. Armed Forces and their unmarried surviving spousesRefinancing Mortgage26Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. If the interest rates drop, consider refinancing the mortgageShould be refinanced after comparing and analyzing the terms of old and new mortgagesPFIN4 | CH527Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Depreciation AnchoringSales contractLeaseClosed-end leaseOpen-end (or finance) leaseResidual valueCapitalized costMoney factorPurchase optionKEY TERMSForeclosurescondominium (condo)Cooperative apartment (co-op)Rent ratioDown paymentLoan-to-value ratioPrivate mortgage insurance (PMI)Mortgage pointsClosing costsPFIN4 | CH528Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Homeowner’s insuranceReal estate short saleMultiple Listing ServicePrequalificationEarnest money depositContingency clauseReal Estate Settlement Procedures ActMortgage loanKEY TERMSMortgage bankerMortgage brokerFixed-rate mortgageAdjustable-rate mortgageAdjustment periodIndex rateMarginInterest rate capPayment capNegative amortizationPFIN4 | CH529Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARYGuidelines for purchase decisionsResearch the purchaseSelect the best item based on the needsBuy the item after negotiatingMaintain the purchase and make necessary repairsLeasing is an arrangement in which the lessee receives the use of an asset in exchange for making monthly lease payments over a specified periodPFIN4 | CH530Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARYBubble in real estate prices encouraged increase in construction and extraction of a lot of home equity through home equity loans and refinancingHome buying processShop the marketUse an agentApply for a mortgageEnter into a sales contract Close the dealPFIN4 | CH5