Fichas
Chapter 15 key terms
Fichas del conjunto (19)
- 1Adjustable rate mortgage (ARM)Rate of mortgage is lower than a fixed rate mortgage. Rates adjusted without refinancing. Caps available to limit how high rate can go for each adjustment period over term of loan
- 2Amortization scheduleShows monthly payment to pay back loan at maturity. Payment also includes interest. Note payment is fixed at same amount each month
- 3Amortization tableA table that shows each periodic payment on a loan or mortgage.
- 4Biweekly mortgageMortgage payments made every 2 weeks rather than monthly. This payment method takes years off the life of the mortgage and substantially reduces the cost of interest
- 5Cash-out refinanceBorrowing more than the current mortgage and taking the difference out in cash
- 6Closing costsCosts incurred when property passes from seller to buyer such as for credit reports, recording costs, points, and so on
- 7Escrow accountLending institution requires that each month 1/12 of the insurance cost and real estate taxes be kept in a special account
- 8Fixed-rate mortgageMonthly payment fixed over number of years, usually 30 years
- 9ForeclosureA legal process used by lender to recover balance of the loan from the borrower who has stopped making payments on the loan
- 10Graduated-payment mortgages (GPM)Borrower pays less at beginning of mortgage. As years go on, the payments increase
- 11Home equity line of creditA revolving lone of credit secured by your home equity
- 12Home equity loanA loan using the borrower's home equity as collateral
- 13Interest-only mortgageType of mortgage where in early years only interest payment is required
- 14Monthly paymentAmount paid each period to pay off part of the mortgage
- 15MortgageCost of home less down payment
- 16PointsPercentage(s) of mortgage that represents an additional cost of borrowing. It is a one-time payment made at closing.
- 17Reverse mortgageFederal Housing Administration makes it possible for older homeowners to live in their homes and ger cash or monthly income
- 18Short saleA real estate sale when amount received is less than balance of the debt
- 19Subprime loanA loan with a rate higher than prime due to uncertainty of payment
Información
- Descripción
- Key terms for chapter 15: The cost of home ownership
- Creado por
- BRANDI MCCAMMON
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