Flashcards
Chapter 15
Flashcards do conjunto (17)
- 1Subprime loanA loan with a rate higher than prime due to uncertainty of payment, 403.
- 2Fixed-rate mortgageMonthly payment fixed over number of years, usually 30 years, 403, 404.
- 3Graduated-payment mortgage (GPM)Borrower pays less at beginning of mortgage. As years go on, the payments increase, 404.
- 4Adjustable 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, 404.
- 5Interest-only mortgageType of mortgage where in early years only interest payment is required, 404.
- 6Biweekly 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, 403, 404.
- 7MortgageCost of home less down payment, 404.
- 8Reverse mortgageFederal Housing Administration makes it possible for older homeowners to live in their homes and get cash or monthly income, 404–405.
- 9Monthly paymentAmount paid each period to pay off part of the mortgage, 405–408.
- 10Amortization tableA table that shows each periodic payment on a loan or mortgage, 405–406.
- 11Closing costsCosts incurred when property passes from seller to buyer such as for credit reports, recording costs, points, and so on, 407.
- 12PointsPercentage(s) of mortgage that represents an additional cost of borrowing. It is a one-time payment made at closing, 407.
- 13Escrow accountLending institution requires that each month of the insurance cost and real estate taxes be kept in a special account, 408.
- 14Home equity loanA loan using the borrower’s home equity as collateral, 404, 408.
- 15Home equity line of creditA revolving line of credit secured by your home equity, 408.
- 16Cash-out refinanceBorrowing more than the current mortgage and taking the difference out in cash, 408.
- 17Amortization scheduleShows monthly payment to pay back loan at maturity. Payment also includes interest. Note payment is fixed at same amount each month, 409.
Informações
- Descrição
- Chapter 15 Vocab words
- Criado por
- McKenzie Layton
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