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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