Chapter 14: Financing; Conventional, FHA and VA loans. Key Terms Part 2 Flashcards Preview

Real estate license study > Chapter 14: Financing; Conventional, FHA and VA loans. Key Terms Part 2 > Flashcards

Flashcards in Chapter 14: Financing; Conventional, FHA and VA loans. Key Terms Part 2 Deck (11)
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1
Q

Index

A

A guy to national mortgage trends, used for adjustable mortgage rates.

2
Q

Interest

A

A charge for the use of other peoples money.

3
Q

Loan to value ratio

A

The percentage of a properties market value that maybe borrowed.

4
Q

Margin

A

The percentage charged by a lender above the index rate.

5
Q

New Jersey Housing and Mortgage Finance Agency (NJHMFA)

A

The agency that offers below market interest loans, with low or no down payment, to qualified buyers to purchase homes in urban target areas, located mainly in inner-city.

6
Q

PITI (Principle, Interest, Tax and Insurance reserves)

A

A mortgage payment including interest, amortization and certain expenses.

PITI (Principle, Interest, Tax and Insurance reserves)

7
Q

Point

A

A 1% calculation of the loan amount, charged as extra upfront interest when the loan is made.

8
Q

Private mortgage insurance (PMI)

A

Insurance protection for the lender on a low down payment mortgage loan. Usually well under the standard 20% down payment.

9
Q

Straight loan

A

A mortgage with payments of interest only.

10
Q

Target area

A

Neighborhoods in which the state wishes to strengthen housing stock. Part of the NJHMFA….New Jersey housing and mortgage financing agency.

11
Q

VA mortgage

A

A loan guaranteed by the federal government for veterans and their spouses.

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