Chapter 14 - Mortgage Loan Repayment and Refinancing Options Flashcards
1
Q
Graduated Payment Mortgage
A
size of payment is changed during the term of the loan. GPM reduces payments below interest cost
2
Q
sinking fund assisted mortgages
A
advances borrower less than face value, setting difference aside in account that is used to draw down initial payments. an amount withdrawn each period as a subsidy to reduce mortgage payment.
3
Q
Reverse Annuity Mortgage
A
at the end of the term, the accumulated balance of principal advances and accrued interest become payable
4
Q
interest adjustment period
A
time between completion date and beginning of amort period. ie. interest accruing loan for the period
