Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Finance3
Finance
| Question | Answer |
|---|---|
| Package loan | A loan secured by real property plus personal property |
| Budget loan | A loan where the monthly payment includes not only principal and interest but taxes and insurance-called the PITI payment |
| PITI | Principal, interest, tax, insurance-a common payment for amortized loans |
| Balloon loan | A partial amortization loan-equal regular payments of principal and interest, but long before the debt is amortized a final payment, substantially larger that the others is required to pay off the debt-the balloon payment |
| Participation loan | Two or more lenders own a share-to lessen the lenders' risk; or the lender who collects principal interest plus a percent of the profits on the investment property |
| Shared Appreciation loan | A loan with an investor/lender who collects principal and interst payments and then a percent of the profits when the property is sold |
| Open-end loan | A home equity line of credit-similar to a credit card but secured by real property |
| Adjustable Rate Mortgage-ARM | A loan with an interest rate tied to a readily available index-the rate will be adjusted periodically causing payment changes |
| Margin | On an adjustable rate mortgage the percent added to the index |
| Construction loan | Short term financing with funds advanced periodically during the stages of construction-term loan |
| Wraparound loan | A new mortgage on a property is placed in a secondary lien position it includes both the unpaid balance of the first mortgage plus additional amounts-the first mortgage is not paid off |
| GPM-Graduated Payment Mortgage | A loan whose payments start low and rise every year, usually for live years, after which they level off by the remaining term of the loan-can resulrt in negative amortization |
| Negative Amortization | An increased in debt due to payments less than the interest owed- can be associated with a graduated payment mortgage |
| Reverse Annuity Mortgage | A home equity loan available to homeowners over 62 years of age the lender makes payments to the borrower based on the equity in their property-the loan comes due upon the sale of the property or the death of the owner |
| Sub-prime loan | A loan with risk based pricing for borrowers with a credit rating in the A minus to F range-the interest rate will be one to live five percent higher than for a prime borrower |
| Primary Market | Where consumers go to borrow money-banks, mortgage companies, ect |
| Secondary Market | Where lenders go to borrow money-Fannie Mae, Ginnie Mae, Freddie Mac |
| Conforming loan | A standarized conventional loan written on uniform documents that meets the purchase requirements of Fannie Mae and Freedie Mac-both loan amount and borrower characteristics must meet the guidelines |
| Non-Conforming loan | A loan unable to be sold to Fannie Mae or Freddie Mac-for example a sub-prime loan |
| Truth in lending | TIL, REG Z, Regulation Z, or the Consumer Credit Protection Act-a law passed to help consumers understand the true cost of borrowing money |
Created by:
Shirilyn
Popular Real Estate sets