37708912
Description
Flashcards by Eli Southard, updated more than 1 year ago
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Created by Eli Southard
over 1 year ago
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| Question | Answer |
| Adjustable Rate Mortgage | Rate of mortgage is lower than a fixed mortgage. Rates adjusted without refinancing. Caps available to limit how high rate can go for each adjustment period over term of loan |
| Amortization Schedule | Shows monthly payment to pay back loan at maturity. Payment also includes interest. Note payment is fixed at same amount each month |
| Amortization Table | A table that shows each periodic payment on a loan or mortgage |
| Biweekly Mortgage | Mortgage 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 |
| Closing Costs | Costs incurred when property passes from seller to buyer such as for credit reports, recording costs, points, and so on |
| Escrow Account | Lending institution requires that each month 1/12 of the insurance cost and real estate taxes be kept in a special account |
| Fixed Rate Mortgage | Monthly payment fixed over number of years, usually 30 years |
| Forclosure | a legal process used by lender to recover balance of the loan from the borrower who has stopped making payments on the loan |
| Graduated-Payment Mortgages | Borrower pays less at beginning of mortgage. As years go on, the payments increase |
| Home Equity Loan | Cheap and readily accessible lines of credit backed by equity in your home; tax-deductable; rates can be locked in |
| Interest-Only Mortgage | Type of mortgage where in early years only interest payment is required |
| Monthly Payment | Amount paid each period to pay off part of the mortgage |
| Mortgages | Cost of home less down payment |
| Points | Percentage of mortgage that represents an additional cost of borrowing. It is a one-time payment made at closing |
| Reverse Mortgage | Federal Housing Administration makes it possible for older homeoweners to live in their homes and get cash or monthly income |
| Short Sale | A real estate sale when amount received is less than balance of the debt |
| Subprime Loans | A loan with a rate higher than prime due to uncertainty of payment |
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