Chapter 14: Financing; Conventional, FHA and VA loans. Key Terms Part 1 Flashcards Preview

Real estate license study > Chapter 14: Financing; Conventional, FHA and VA loans. Key Terms Part 1 > Flashcards

Flashcards in Chapter 14: Financing; Conventional, FHA and VA loans. Key Terms Part 1 Deck (15)
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1
Q

Adjustable rate mortgage

A

A plan with interest rate changed either up or down periodically.

2
Q

Amendatory clause

A

This states that a buyer getting an FHA loan can resend the contract if the appraisal is lower than the purchase price.

3
Q

Amortization schedule

A

Listing of each payment: interest, principal paid, remaining debt.

4
Q

Amortized loan

A

The repayment plan including principal payments gradually; reduces debt.

5
Q

Assumable

A

This means a mortgage can be taken over by the next buyer.

6
Q

Biweekly mortgage

A

This is a repayment plan, equivalent of 13 monthly payments per year. It saves more on interest that I conventional 30 year mortgage.

7
Q

BPO

A

The written estimate of value by real estate license.

8
Q

loan-to-value ratio. LTV

A

The amount of a mortgage loan in relation to the value of a home.

9
Q

Budget loan

A

A loan with monthly payments including property taxes and insurance.

10
Q

Buy down

A

The payment of extra points in return for lower interest rate.

11
Q

Cap

A

A percentage beyond which interest rate cannot be raised at an adjustment. On a variable rate mortgage this is the Are the most that they can charge.

12
Q

Ceiling

A

The highest interest rate ever allowed on a specific adjustable loan.

13
Q

Certificate of reasonable value

A

The VA appraisal statement.

14
Q

Federal housing administration (FHA)

A

The US agency that insures mortgages to protect lending institutions.

15
Q

FHA 203(b)

A

This is known as a low down payment in shored mortgage loan.

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