Financial Planning Online II

Financial Planning Online II - • Interest rate Typically...

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Financial Planning Online: Should You Lease or Buy? Go to: invest/calculators/ This Web site provides a comparison of the cost of leasing versus purchasing a car. Student Loans Student loan: a loan provided to finance part of the expenses a student incurs while pursuing a degree Loan may be provided to either the student or the student’s parents Repayment typically deferred until student is out of school Interest may be tax deductible Home Equity Loan Home equity loan: a loan where the equity in a home serves as collateral for the loan Equity of a home: the market value of a home minus the debt owed on the home Credit limit on a home equity loan Limit based on equity invested Financial institutions usually loan up to 80% of the equity in a home Home Equity Loan (cont’d)
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Unformatted text preview: • Interest rate Typically variable Rate is usually tied to an interest rate index and adjusted periodically Interest on most home equity loans is tax deductible • Financial Planning Online: Applying for a Home Equity Loan • Go to: • This Web site provides access to home equity loan applications • Home Equity Loan (cont’d) • Impact of the economy on the credit limit As economic conditions change, so does the value of a home Market values of homes may decline substantially, leaving no equity in the home • How Personal Loans Fit within Your Financial Plan • Key personal loan decisions for your financial plan are: How much money can you afford to borrow on a personal loan? If you obtain a personal loan, should you pay it off early?...
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