5 S.R. Flashcards
Because the owner gives the mortgage to a lender, the owner-borrower is the _______.
Mortgagor
If the property is financed with a loan, the owner-borrower gives the lender a document known as a _____ as collateral.
Mortgage
The lender receives the mortgage and is therefore the _______.
Mortgagee
The _____ is a period of time between default and foreclosure that allows the mortgagor to get caught up on payments.
Equitable redemption period
The ______ is a period of time that allows the mortgagor to redeem the mortgage even after foreclosure by paying the entire balance of the loan.
Statutory redemption period
A _______ is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other party (the payee).
Promissory note
The ______ clause is an optional provision that gives the lender the power to foreclose without going to court.
Power of sale
The ______ clause makes the entire balance of the loan due and payable for specified conditions such as not making loan payment or tax payments.
Acceleration
A/an _______ clause (also known as a due on sale clause) allows the lender to accelerate the loan (declare the balance due and payable) if the property is sold or transferred.
Alienation
A/an _____ clause states that the current claim on any debts will take priority over any other claims.
Subordination
If a mortgage loan is ________, then a new buyer of the property can take over the loan obligation and continue making payments.
Assumable
A loan is _______ by the Federal Housing Administration (FHA).
Insured
A loan is ____ by the Department of Veterans Affairs (DVA).
Guaranteed
If a loan is not an FHA Insured or a Guarateed DVA loan, it is called a ________ Loan.
Conventional
A/an ______ mortgage includes personal property.
Package
A/an _______ mortgage is used when more than one parcel is pledged.
Blanket
A/an _____ mortgage allows the borrower to obtain further money advances at a later date.
Open-end
A/an _______ is a loan in which the interest rate adjusts at pre-determined times, and the adjustment is based on an economic index.
Adjustable rate mortgage (ARM)
The Fair Credit Reporting Act (FCRA) requires each of the three nationwide consumer reporting companies to give you a free copy of your credit report, at your request, once every _______ months.
12
A homeowner can deduct ______, _______, and ________ from their taxable income when calculating their annual income taxes.
Mortgage interest, real estate taxes, and loan points
When you sell your primary residence, you can make up to $_______ in non-taxable profit if you’re a single owner, and twice that if you’re married.
$250,000
The three largest secondary mortgage market institutions are _______, ________, and _______.
Fannie Mae, Freddie Mac, and Ginnie Mae
To convert a fraction into a _______ number, divide the top number by the bottom number.
Decimal
To convert percentages into decimal numbers, move the decimal point two places to the _____ and eliminate the percent sign.
Left
To convert decimals into percentages, move the decimal point two places to the _____ and insert a percent sign.
Right
When asked to find a percentage of a number, the “of” means you should _________.
Multiply
When costs (like taxes) or income (like rent) are split between buyer and seller at closing they are said to be _______.
Prorated
