Week J Cue Cards

dylan_earl
Flashcards by dylan_earl, updated more than 1 year ago
dylan_earl
Created by dylan_earl about 6 years ago
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Question Answer
Graduated Payment Mortgage (GPM): Starts Small and goes up over time, non constant payments T/F True
Share Appreciation Mortgage (SAM): Gives lender a % of property appreciation in exchange for mortgage interest rate reduction T/F True
Price Level Adjusted Mortgage (PLAM): Lenders concerned with inflation want to adjust payments to reflect inflation T/F True
What is the Tilt Problem? When there is inflation in the housing market. (Chronologically) House values increase, Nominal Interest Increases, Goods become more expensive and then income increases (Mortgage adjusts faster than income)
Interest and Principal are proportionally divided from payments over the course of the mortgage. T/F False Mortgage payments pay off more interest in the beginning than principal
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