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Mortgages Chapter
| Term | Definition |
|---|---|
| Adjustable Rate Mortgage | Mortgage with changing interest rate |
| Balloon Mortgage | A mortgage in which the entire remaining balance of the loan is due in one single payment |
| Buy Down Mortgage | A mortgage in which the borrower prepays part of the interest to get a lower rate |
| Escrow | An amount paid in advance to the lender from which the lender pays real estate taxes |
| Equity | The difference between what an item is worth and what is owed on it |
| Fixed Rate Mortgage | Loans with a fixed interest rate for the life of the loan |
| Foreclosure | The court-ordered sale of a property when the mortgage is not paid |
| Loan to Value | A relationship which is the value of the loan compared to the value of the asset |
| Mortgage | A note, usually long term, secured by real property. It places a lien on the property that is not released until the debt is paid |
| PITI | Housing costs that the lender considers in the loan analysis and that are itemized on the monthly mortgage statement |
| Point | A value equal to one percent of the loan |
| Redlining | A practice in which banks refuse to lend to residents of certain neighborhoods |
| Reverse Mortgage | A consumer loan tied to the appreciated value of a property |
| Shared Appreciation Mortgage | A mortgage that can lower interest rates for borrowers who agree to share later with the lender some part of the amount the house appreciates. |
| Home Mortgage Disclosure Act | Requires banks and other financial institutions to record and report data on home lending in order to identify possible discriminatory patterns. |
| Home Ownership and Equity Protection Act | Protect consumers against predatory lending |
| Real Estate Settlement Procedures Act | Protects consumers from hidden costs or expensive surprises at closing time. |
| Federal Housing Administration | Now called the Office of Housing, guarantees loans with low down payments to help people obtain housing who perhaps could not otherwise afford it |
| Consumer Reporting Agency | Company that compiles and sells credit records |
| Equal Credit Opportunity Act | Prohibits the use of race, color, religion, national origin, marital status, age, receipt of public assistance, or exercise of any consumer right against a lender as a factor in determining creditworthiness |
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enix
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