Loan Basics
PITI stands for?
Principal, Interest, Taxes, Insurance
FHA backed by?
Federal Housing Administration
Clause calling full repayment on default?
Acceleration
Judicial vs Non-judicial?
Court vs trustee sale
Max DTI ratio?
~36–43%
Loan for veterans?
VA loan
Alienation clause means?
Full payoff if sold
Deed in lieu?
Hand property back to lender
$200k home, $160k owed. Equity?
$40k
Conforming vs Jumbo?
Meets Fannie/Freddie vs exceeds
Clause releasing lien when paid?
Defeasance
Note vs Mortgage?
Note = promise, Mortgage = lien/security
ARM index rises, rate?
Goes up
Why controversial: prepayment penalty?
Punishes early payoff
Default consequence?
Foreclosure/credit hit/deficiency judgment
Loan for seniors, no payments?
Reverse mortgage
Subordination does what?
Changes lien priority