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Ch 7: Planning for Major Purchases

About This Chapter

Planning for a major purchase involves several steps, ranging from identifying your maximum price to researching loans and financing options. This chapter explains how to map out a plan for investments like vehicles and property.

Planning for Major Purchases - Chapter Summary

When considering the decision to get a car or a home, the rent or buy option is one of the first options presented to the potential owner. Both areas have their distinct sets of drawbacks and perks. This set of lessons explain the personal financial aspects to purchasing a vehicle or property. You can also expect to learn about the following:

  • Steps in the decision-making process for major purchases
  • What the differences are between purchasing and renting
  • What an installment purchase entails
  • Advantages of buying or leasing a car
  • What a deed of trust is

6 Lessons in Chapter 7: Planning for Major Purchases
Test your knowledge with a 30-question chapter practice test
Decision-Making Methods for Major Purchases

1. Decision-Making Methods for Major Purchases

Major purchases such as home repairs, cars, or furniture can be made safely using strategies for decision-making. Learn to evaluate and balance needs vs wants, new vs old, pricing, and the advantages of buying vs renting or leasing.

Installment Purchases: Payment & Terms

2. Installment Purchases: Payment & Terms

Installment purchases allow buyers to purchase an item immediately and make payments over a period of time. Discover the terms of installment purchases, how to calculate interest on installments, and how to determine the amount of fixed or monthly payments.

Leasing vs. Buying a Car: Advantages & Disadvantages

3. Leasing vs. Buying a Car: Advantages & Disadvantages

Some vehicle drivers will prefer leasing over purchasing a car and vice versa, as both options provide different benefits or issues to think about. Learn more about the advantages and disadvantages of buying or leasing a car and what is more appropriate for each owner.

Buying a House: Mortgage Types & Loan Length

4. Buying a House: Mortgage Types & Loan Length

Doing research into the different types of finances that are available when buying a house will broaden a prospective homeowner's awareness and options in the housing market. Learn more about the different mortgage types, principal and interest, loan lengths, and payback schemes available to home buyers.

What is a Deed of Trust? - Definition & Overview

5. What is a Deed of Trust? - Definition & Overview

A deed of trust is a three-way agreement between the truster (borrower), the trustee (neutral legal title-holder), and the beneficiary (lender). Learn the key provisions of a deed of trust, and an overview of its distinction from a mortgage.

What is Title Insurance? - Definition & Purpose

6. What is Title Insurance? - Definition & Purpose

Title insurance is a form of protection of buyers and lenders from other parties' claims against their rights. Learn how insurability is determined, types of title policies, and the purpose of different coverages in title insurance.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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More Exams
There are even more practice exams available in Planning for Major Purchases.

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