Learning Center
Basic Finance
How Credit Affects You
Preparing for Home Ownership
Steps for Buying a Home
Life as a Homeowner






 
Module 1
Basic Finance
Key Points Summary
line

You will need to download Flash Player 7 or above. Click here to download the player.
Additional Resources

The following key points were discussed in Basic Finance:

  1. Creating and using a spending plan can help you manage your money effectively.

  2. Develop a savings strategy to help you reach your financial goals.

  3. There are many benefits to keeping your money in a financial institution, including safety, security, cost benefits, privacy and convenience.

  4. Banks and credit union accounts are insured up to $100,000 by the Federal Deposit Insurance Corporation and the National Credit Union Administration, respectively.

  5. Alternative financial institutions, such as payday lenders, rent-to-own stores, and check
    cashiers, are significantly more expensive to use than banks and credit unions.

  6. Establish an emergency fund of three to six months of living expenses and protect yourself with adequate insurance.

  7. Loans are typically categorized as secured or unsecured. Secured loans, such as home loans, auto loans and small business loans, require collateral to ensure repayment. Unsecured loans, such as personal loans and student loans, usually have higher interest rates but do not require any collateral.

  8. There are consumer protection laws in place that cover privacy, financial accounts and services, credit and housing.
Next Step
Now that you have reviewed the Key Points Summary test your homeowner knowledge with our Quick Quiz.

When you are finished, continue to How Credit Affects You to see how understanding and managing your Credit can help you achieve the dream of home ownership.
  Countrywide Home Loans, a division of Countrywide Bank, FSB is an Equal Housing Lender. © 2007 - 2008 Countrywide Financial Corp. Trade/service marks are the property of Countrywide Financial Corp., and/or its subsidiaries. All rights reserved. The content of this website is provided for the convenience of our readers and is for informational purposes only. Readers are encouraged to use the content of this website to supplement their knowledge and to also seek out other reliable sources of information prior to engaging in the home financing and home buying processes. The information featured herein is intended to be accurate and we will make efforts to keep this website updated. However, due to the rapid changes occurring in the programs, products, services offered within the home financing industry, we do not guarantee the accuracy of the information presented. Countrywide is not responsible for the contents of, or products or services offered on, third party Web sites and provides links to such sites solely for your convenience. This is not a commitment to lend. All rights reserved.