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House Of Cards Terms
House of Cards Terms II
Purchasing a home terms
100
The amount of house that has been paid for by the owner.
What is equity
100
Flipping a house
Buying a home solely with the purpose of reselling it soon after at a higher price.
100
A middleman who sets up a loan between a home buyer and a bank.
What is a mortgage broker
200
Mortgages for people who did not qualify for a loan - did not have the three C's
What is sub-prime mortgage
200
Pieces of mortgages packaged up and sold as investments.
What is mortgage backed security.
200
A middleman between the buyer and the seller of the house that arranges home tours and handles negotiations.
What is a realtor
300
Companies created by the government to increase home ownership.
What is Fannie Mae & Freddie Mac
300
What will happen to the cost of borrowing if the Federal Reserve raises interest rates?
It will be more expensive to borrow.
300
List at least three important considerations when purchasing a home.
What is location, utility, quality, resale, and cost.
400
Getting a new loan with a new down payment and a new interest rate
What is refinancing
400
Companies that rate investments to give investors an idea of the risk level associated with those investments.
What is a rating agency
400
A type of mortgage that has the same payments for the life of the loan.
What is a fixed rate mortgage.
500
The structure of a home loan where the majority of your initial payments go towards interest and a little towards the principal and vice versa.
What is loan amortization
500
A type of investment company that bets on some stocks to go up and some stocks to go down.
What is a hedge fund
500
What percentage of the home does the realtor earn for their work in selling or buying the house?
What is 2.5%