Chapter 14 Financing Conventional, FHA and VA loans Flashcards
low down payment INSURED mortgage loan
FHA 203(b)
loan with monthly payments including property taxes and insurance
Budget loan
mortgage can be taken over by next buyer
Assumable
VA appraisal statement
Certificate of reasonable value
Highest interest rate ever allowed on a specific adjustable loan
Ceiling
listing of each payment: interest, principal paid, remaining debt
Amortization Schedule
payment of extra points in return for lower interest rate
Buydown (points payment)
States that a buyer getting an FHA loan can rescind (cancel) the contract if the appraisal is lower than the purchase price
Amendatory Clause
percentage beyond which interest rate cannot be raised at adjustment
Cap
plan with interest rate changed either up or down periodically
Adjustable rate mortgage
repayment plan including principal payments; gradually reduces debt
Amortized loan
repayment plan, the equivalent of 13 monthly payments per year
Biweekly mortgage
US agency that insures mortgage to protect lending institutions
Federal Housing Administration ( FHA )
written estimate of value by real estate licensee
BPO ( Broker price opinion)
CHARGE of the use of other peoples money
Interest
guide to national mortgage trends, use for adjustable mortgage rates
Index
lender of low interest money in certain areas
New Jersey Housing and Mortgage Finance Agency (NJHMFA)
Mortgage payment, including Interest, amortization, and certain expenses
PITI ( Principle, Interest, Tax and Insurance)
mortgage with payments of interest only
Straight loan
loan guaranteed by Federal Government
VA mortgage
neighborhoods in which the state wishes to strengthen housing stock
Target area
1% of loan amount charged as extra up front interest when loan is made
Points
percentage charged by lender above index rate
Margin
percentage of property’s market value that may be borrowed
Loan to value ratio
