11.4 Vocab

Question 1

mortgage

Answer 1

a loan obtained for the purchase of a home

Question 2

a loan obtained for the purchase of a home

Answer 2

mortgage

Question 3

down payment

Answer 3

a lump sum of money, usually a percentage of the total price of that home, paid by the buyer at the time of purchase

Question 4

a lump sum of money, usually a percentage of the total price of that home, paid by the buyer at the time of purchase

Answer 4

down payment

Question 5

Private Mortgage Insurance (PMI)

Answer 5

insurance that protects lenders against loss if the borrower defaults on the loan; does not go toward paying down your mortgage at all

Question 6

insurance that protects lenders against loss if the borrower defaults on the loan; does not go toward paying down your mortgage at all

Answer 6

Private Mortgage Insurance (PMI)

Question 7

equity

Answer 7

the increase in value of a home over time; the difference between the amount owed and what the home could be sold for

Question 8

the increase in value of a home over time; the difference between the amount owed and what the home could be sold for

Answer 8

equity