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Flashcards in N6 Financing Deck (43)
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1

Leverage

Using borrowed money to increase the rate of return.

2

Promissory Note

Evidence of Debt.

3

The promissory note is ____ usually recorded.

NOT

4

The document that hypothecates real property as security for a debt .

Mortgage or Deed of Trust

5

The mortgage or deed of trust is usually recorded to establish ________ of the lien.

priority

6

The document that names the property as collateral and includes a legal description.

Mortgage or Deed of Trust

7

Fully Amortized Loan

A loan in which the monthly payment of principal and interest is level and constant.

8

The amount of money borrowed.

Principal

9

Charge made to borrow money.

Interest

10

The interest on real estate loans is usually _____.

Simple Interest

11

When one payment on a loan (usually at the end of the loan term) is larger than the regular monthly payment.

Balloon Payment

12

A Budget Loan's payments include:

PITI ( Principal, Interest, Taxes, and Insurance)

13

In a budget loan, the taxes and insurance are held in an _______ account, aka a _____ account or ____ account.

escrow, reserve, impound account

14

A loan in which payments are interest only is a ____ loan AKA a ______ loan.

Straight or Term loan

15

A loan in which the payment does not even cover the interest due and which causes the principal balance to increase.

Negative Amortization Loan

16

The pattern of payments (payment, interest rate, etc.) are found in the _____.

Promissory Note

17

Payments on real estate loans are made in ____.

arrears

18

An FHA Loan is insured by the _____.

Federal Housing Administration

19

A VA Loan is guaranteed by ______.

The Department of Veteran Affairs

20

Conventional Loan

A loan made with no government insurance or guarantee .

21

Purchase Money Loan or Seller Carry Back

A loan in which the seller is the lender .

22

A seller carryback loan in which a seller remains liable for an existing loan is a _____.

Wrap Around Loan

23

A loan in which the interest rate may change.

Adjustable Rate or ARM Loan

24

A loan in which the payments are lower in the early years and larger in later years.

Graduated Payment Loan

25

A Blanket Loan is Secured by _______.

one or more properties

26

A package Loan includes:

Personal Property

27

A loan which allows a borrower to borrow more money within the same loan.

Open End Loan

28

A loan in which funds are advanced as building progresses.

Construction or Interim Loan

29

Take-Out -Loan

The normal, long term financing that pays off a construction

30

A short term loan that fills the gap between the time a construction loan expires and a take-out loan is placed or enable a buyer of a home to borrow money on a home the buyer is trying to sell.

GAP, Swing, or Bridge Loan