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
NE Real Estate
NE Real Estate Unit 12
| Term | Definition |
|---|---|
| foreclosure | property is sold to satisfy the debt |
| deed of trust | create a mortgage lien the borrower conveys title to the trustee |
| defeasance clause | cancels a specified right upon the occurrence of a certain condition |
| deficiency judgment | personal judgment levied against the borrower |
| discount points | unit of measurement used for various loan charges |
| equity | interest or value an owner has in property |
| acceleration clause | enforced entire debt immediately if the borrower defaults |
| alienation clause | balance of the secured debt becomes immediately due |
| amortized loan | principal & interest is payable over the term of the loan |
| assumption of mortgage | title to property, an existing mortgage and liable for the terms |
| growing-equity mortgage | monthly payments increase annually directly reduce the principal balance |
| deed of reconveryance | transfer the title back to the trustor (borrower) when the note is paid |
| balloon payment | final payment is larger than previous payments; not fully amortized |
| beneficiary | the lender in a deed of trust loan transaction |
| comprehensive loss underwriting exchange (CLUE) | database of consumer claims history |
| debt to income (DTI) | application gross income and total debt |
| deed in lieu of foreclosure | mortgagor is in default under the terms |
| adjustable-rate mortgage (ARM) | loan characterized by a fluctuating interest rate |
| "subject to" | specifying exceptions or contingencies of a purchase |
| trustor | a borrower in a deed of trust loan transaction |
| homeowners insurance | RE owner against financial loss |
| hypothecation | pledge property as security for an obligation or loan w/o giving up possession of it |
| index | economic indicator to interest rate |
| interest | charge made by a lender for the use of money |
| loan origination fee | a fee charged to the borrower by the lender for making a mortgage loan |
| loan-to-value (LTV) | amount of the mortgage loan and the value of the RE |
| margin | the lenders cost of doing business |
| mortgage | a conditional transfer or pledge of RE as security for the payment |
| mortgagee | the lender |
| mortgagor | the borrower |
| negative amortization | amount of the loan increases |
| negotiable instrument | a written promise of order to pay a specific sum of money |
| note | financing instrument that states the terms of the underlying obligation |
| novation | substituting a new obligation for an old one |
| PITI (principal, interest, taxes, and insurance) | basic costs of owning a home |
| usury | charging interest at a higher rate than the maximum |
| prepayment penalty | a charge imposed on a borrower who pays off the loan principal early |
| promissory note | see note |
| release deed | transfers all rights given a trustee back to the grantor after loan fully paid |
| reverse mortgage | a loan where homeowner receives payment based on the equity in the property secured by the mortgage |
| satisfaction of mortgage | doc acknowledging the payment of the mortgage debt |
| short sale | sale price is less then the remaining indebtness |
| interest-only loan | only payment of interest w/the principal due at the end |
| straight loan | interest is paid during the term w/the entire principal due with the final interest payment |
Created by:
SevitaM
Popular Real Estate sets