Financing Flashcards
1
Q
one point is equal to _% of the borrower’s loan amount
A
1%
2
Q
the ratio of the loan amount to the property value (sales or appraised value, whichever is lower)
A
loan to value
3
Q
a fee paid back to a lender for the use of its money; the amount of _____ paid with each mortgage payment typically decreases over the life of the mortgage
A
interest
4
Q
a measure of both the interest rate and other fees associated with a mortgage loan
A
annual percentage rate (APR)
