Mortgage & Note
An agreement that provides collateral to the lender to back up the promise to repay the loan plus interest.
What is Mortgage?
The ____ is the borrower in a deed of trust, who borrows funds from a lender to acquire real property
What is Trustor?
PMI stands for?
What is Private Mortgage Insurance?
APR stands for ___
What is Annual Percentage Rate?
The ____ is the neutral third party in a deed of trust
What is Trustee?
A contract between a borrower and lender; also referred to as a real estate lien note
What is Promissory Note?
The ____ is the leader in a deed of trust, who holds the deed of trust until funds are repaid by the borrower
What is Beneficiary?
A _____ requires only interest payments until the full amount of borrowed is due
What is Term / Straight Loan?
When consumers lack the knowledge to evaluate lending practices and are preyed upon by unscrupulous lenders who take advantage of that lack of knowledge, this is know as ____.
What is Predatory Lending?
A ____ is any loan that has a final payment larger than any of the previous payments
What is a Balloon Loan?
The _____ clause gives the lender the right to call the entire loan balance due if the mortgage property is sold or otherwise conveyed by the borrower
What is Alienation?
A _______ is created to provide security for the promissory note in the place of a mortgage. It also immediately grants and conveys qualified “title” to the trustee
What is Deed of Trust?
An ____ requires equal payments for the life of the loan; each payment includes both interest and principal repayment (PI)
What is Amortized Loan?
___ is a federal law that requires certain disclosures by lending institutions when extending or advertising credit
What is Truth-in-Lending Act (TIL)?
The ______ allows the lender to collect the rent payments, if the borrower defaults on their loan payments
What is Assignment of Rents?
The _____ clause is when all or part of the property is taken by action of eminent domain, any money so received is used to reduce the principal remaining on the note
What is Condemnation?
A ____ is a title that the borrower grants to the trustee; and lacks the rights and privileges usually associated with ownership
What is Naked (or Bare) Title?
The _______ is the relationship between the amount of money a lender is willing to loan and the lender’s estimate of the market value of the property that will serve as security
What is Loan-To-Value Ratio?
___ is a federal regulation that is used to implement the enforcement of the truth-in-lending act.
What is Regulation Z?
Who is first in the debt priorities system?
What is First mortgage / senior mortgage
A _____ of _____ is a 3 party arrangement consisting of the borrower (the trustor), the lender (the beneficiary), and a neutral third party (a trustee)
What is Deed, Trust?
A _____ is a document used to reconvey title from the trustee back to the property owner once the debt has been paid
What is Reconveyance / Release Deed?
Getting a ______ means in addition to collecting the monthly principal and interest payment, the lender collects one-twelfth of the estimated cost of the annual property taxes and hazard insurance on the mortgage property
What is Budget Mortgage?
What are the FOUR loan estimate disclosures that must be prominently displayed on the promissory note?
What is loan terms, projected payments, annual percentage rate, and cost of closing?
What is the loan-to-value ratio?
Market value = $275,000
Loan = $95,000
What is 34.5%?