ADMS 3541 Lecture Notes - Lecture 10: Mortgage Insurance, List Price

• School: York University
• Department: Administrative Studies
• Course: ADMS 3541
• Professor: Alan Go

Document Summary

Overview: what are the reasons people borrow money, the variety of credit sources available, how credit scores work, cardinal rules for smart borrowing. Financial debt - common philosophies: debt is bad, why wait, it is free money. Lines of credit: essentially a loan from a bank that allows you to borrow a predetermined amount of money, money borrowed accrues interest immediately. Interest and fees on a line of credit is usually less than those charged on credit cards. Line of credits accrue interest right away compared to credit cards which don"t. Long term financing: risk to lenders is lower. Lender has collateral, asset can be repossessed by the lender. Is a debt instrument or loan specific to real estate property: minimum down payment is required (ranges from 5% to 20%, rrsp can be used towards down payment or just general savings.