Vocabulary
This is an account held by a third party to be turned over to another at a specified time.
What is escrow?
This is the process of a certified professional assessing the value of the property.
What is an appraisal?
What is 100%?
Decrease in market demand, deterioration of the property, and economic recession. (what do these cause?)
What is depreciation?
This is a mortgage designed to help individuals who may not qualify for other mortgage loans due to poor credit or lack of down payment.
What is an FHA loan?
These are assessed and calculated by governmental agencies once each year and are paid as part of a monthly mortgage payment to avoid a large tax bill at the end of the year.
What are property taxes?
This is a type of mortgage which allows senior citizens to convert home equity into cash without selling the home.
What is a reverse mortgage?
Value minus debt equals what?
What is equity?
With an amortized loan, early payments primarily pay for what?
What is the interest?
If you have an amortized loan, additional payments on top of the normal payments are typically applied to what?
What is the principal?
This is the value of an owner's share in a property.
What is Equity?
This is a loan that is guaranteed to eligible veterans, active-duty personnel and surviving spouses.
What is a VA Loan?
Private mortgage insurance is mandatory for what percentage of home equity?
What is 20%?
These are legal documents that detail the sale of the real estate property.
What is a purchase agreement?
What are Government Sponsored Enterprises?
These are mortgages which require the borrower to make regular payments for a fixed period and pay the entire remaining balance at maturity.
What is a balloon mortgage?
This is a form that is intended to provide a potential buyer with all information the seller knows about the property and its potential issues.
What is the seller's disclosure?
After a home purchase successfully closes, this typically happens to earnest money.
What is apply it to the down payment?
The seller's disclosure and ________________ are both terms and contingencies of real estate purchase agreements.
What is property description?
What is the general rule to distinguish real property from personal property? (hint: do you leave the item in the house or take it when selling the house?)
What is "if it requires a tool to remove it it, it is part of the real property."
This is a form of prepaid interest (one of these costs one percent of the loan amount and reduces the interest rate by one-eighth of a percent-also known as a discount point).
What is a mortgage point?
This is a term used to describe when a borrower has negative equity in a property.
What is an upside-down mortgage?
This is the equation to find equity.
What is Total Value of the property-the amount of debt owed on a property?
Creditworthiness, size of the principal, and state of the economy. (what do these affect?)
What is interest rates?
Which two organizations ensure continuous funds for home loans by securitizing conforming loans?
What is Freddie Mac and Fannie Mae?