Chapter 14: Financing; Conventional, FHA and VA loans. Key Terms Part 1 Flashcards
Adjustable rate mortgage
A plan with interest rate changed either up or down periodically.
This states that a buyer getting an FHA loan can resend the contract if the appraisal is lower than the purchase price.
Listing of each payment: interest, principal paid, remaining debt.
The repayment plan including principal payments gradually; reduces debt.
This means a mortgage can be taken over by the next buyer.
This is a repayment plan, equivalent of 13 monthly payments per year. It saves more on interest that I conventional 30 year mortgage.
The written estimate of value by real estate license.
loan-to-value ratio. LTV
The amount of a mortgage loan in relation to the value of a home.
A loan with monthly payments including property taxes and insurance.
The payment of extra points in return for lower interest rate.
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.
The highest interest rate ever allowed on a specific adjustable loan.
Certificate of reasonable value
The VA appraisal statement.
Federal housing administration (FHA)
The US agency that insures mortgages to protect lending institutions.
This is known as a low down payment in shored mortgage loan.