Fichas
Key Terms for Chapter 15
Fichas del conjunto (18)
- 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 the loan
- 2Amortization ScheduleShows monthly payments to pay back loan at maturity. Payment also includes interest. Note payment is fixed at same amount each moth
- 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 line 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 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 get cash or monthly income
- 18Subprime LoanA loan with a rate higher than prime due to uncertainty of payment
Información
- Descripción
- Chapter 15 Key Terms of "Practical Business Math Procedures" by Jeffrey Slater
- Creado por
- Laura Samuelson · sep 2024
- Actualizado
- 17 sep 2024
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- 54
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