Mortgage Basics
Is a hole, Usually long-term secured by real property.
Mortgage
Which mortgage type has a fixed interest rate for the life of the loan?
Fixed Rate Mortgage
The first step in the mortgage process is getting ____.
Pre Approved
If you’re paying off a loan, the amount you still owe is called the ____.
Principal
A financial institution that provides mortgages is called a ____.
Lender
You’ll typically need to pay this upfront cost when buying a home.
Down Payment
Which mortgage option is backed by the government and is often used by first-time buyers?
FHA Loan
Before making an offer, you need to get pre-___.
Approved
The interest rate you pay over the life of the loan is a key part of your ____.
Mortgage Rate
What is a credit union?
A member-owned financial institution that offers mortgage loans
The percentage of the home's value that you borrow is known as the ____.
Loan-to-value ratio (LTV)
Which type of loan allows the interest rate to change after a few years?
Adjustable-rate mortgage (ARM)
This document gives you an estimate of your monthly mortgage payment.
Loan estimate
The total amount you pay each month, including taxes and insurance, is called your ____.
PITI (Principal, Interest, Taxes, Insurance)
Which lender specializes in making loans to people with lower credit scores?
Subprime lender
This account holds money for taxes and insurance payments made as part of your monthly mortgage.
Escrow account
If a loan amount exceeds conventional loan limits, it’s called a ____.
Jumbo loan
Before closing, the lender will check your credit and other financial information in a process called ____.
Underwriting
When you borrow money for a mortgage, you agree to repay it over a set number of years. This number is called the ____.
Term
Who helps borrowers find the right mortgage from various lenders without actually lending the money?
Mortgage broker
The upfront payment for a mortgage is usually expressed as a percentage and is called the ____.
Down payment
Which government-backed loan is available to veterans?
VA loan
After your loan application is approved, this is the final step in buying your home.
Closing
The process of paying down both the principal and the interest in regular payments is called ____.
Amortization
What type of lender focuses on providing short-term, higher-interest loans, often to people with bad credit?
Hard money lender