Chapter 14 - Computations and Title Closing Flashcards
1
Q
Arrears
A
Paid at the end of the period for which payment is due.
2
Q
Credit
A
To be reimbursed for an expense.
3
Q
Debit
A
To be charged for an expense.
4
Q
Level-payment plan
A
A mortgage in which the monthly payments are a fixed amount (payment does not change) but the amount applied to principal increases each month and the amount applied to interest decreases each month.
5
Q
Preclosing inspection
A
A final walk-through with the sales associate to verify that repairs have been completed and that the property is left in good condition.
6
Q
Principal
A
The unpaid balance of the debt.
7
Q
Profit
A
The amount one makes over and above one’s cost.
8
Q
Prorate
A
To divide various debts (charges) and credits between buyer and seller; a proration is a shared expense between the buyer and seller.
