10.5 Definitions Flashcards
1
Q
The amount is borrowed to buy the real estate
A
Mortgage
2
Q
Payment due at the closing, when the sale of the house is finalized
A
Closing costs
3
Q
Fee usually expressed in points
A
Loan origination
4
Q
Bank takes possession of the property and has the right to sell it
A
Foreclosure
5
Q
Interest rate is charged and is adjusted periodically to more closely reflect current interest rates
A
Adjustable rate mortgages
6
Q
One in which the interest rate changes on the loan remains the same throughout the life of the mortgage
A
Fixed rate mortgage
7
Q
Monthly payment on a mortgage
A
Mortgage payment
8
Q
Lists for each mortgage payment the payment number the interest payment the amount applied towards the principal and the resulting balance is paid
A
Amortization schedule
