2.4 Flashcards
(22 cards)
________ is the systematic repayment of a debt over a period of time.
Amortization
With an ARM, rates will eventually change, and they do, it is referred to as the ______ date.
adjustment
The ______ (ADDI) provides funds to all fifty states and local participating jurisdictions that have a population of at least 150,000, or that will receive an allocation of at least $50,000 under the ADDI formula.
American Dream Down Payment Initiative
A _________ payment is paid as a lump amount at the end of a specified term.
balloon
The cities of Minneapolis and St. Paul offer mortgage loans through their ______ Program, a joint effort between the two cities.
City Living
The _________ (CASA) program is a first time homebuyer loan program that helps low to moderate income Minnesotans buy a home.
Community Activity Set Aside
The _______ (MHFA) is an example of a state-sponsored program to help first-time homeowners whose income does not exceed an established amount purchase a home.
Minnesota Housing Finance Agency
A mortgage buy-down allows a seller or a buyer to pay _______ up front to have interest rates and monthly payments reduced for a period of time.
cash
A/an _________ loan is a loan that “bridges” the gap between the purchase of a new home and the sale of the borrower’s current home.
bridge
_________ is a percentage rate expressed as an annual rate; the interest rate for a whole year rather than just a monthly fee/rate. It is the interest rate at which a borrower will need to repay in addition to the original money borrowed for the benefit of borrowing money.
APR or annual percentage rate
There are two common forms of construction loans: those obtained by the ______ and those obtained by the buyer.
builder
________ is a government-owned corporation operating within the US Dept. of Housing and Urban Development (HUD).
Ginnie Mae
A/an ______ loan is when you borrow money against your home, in a lump sum for a one-time occasion.
home equity
Hud-1 settlement statement is a document that provides an itemized listing of the ______ to be paid at clsing.
funds or costs
The ______ ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property.
loan-to-value (LTV)
Original Principal Balance is the _______ amount of the mortgage before any payments have been made.
original
_______ is a term applied to a reference interest rate charged by banks.
Prime rate
Principal balance, in regards to a mortgage or other debt instrument, is the amount ________ and owing to satisfy the payoff of the underlying obligation.
due
________ is a type of debt account where the outstanding balance does not have to be paid in full every month by the borrower to the lender.
Revolving debt
A secured loan is a loan in which the borrower pledges an ________ as collateral for the loan.
asset
The federal Truth in Lending Act (TILA) requires lenders to disclose in writing the terms and ________ of a mortgage, including the annual percentage rate, or APR and other fees and charges.
conditions
The _________ ratio is the lender’s rule of thumb for determining a borrower’s ability to pay.
qualifying or debt-to-income
