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

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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 an amount withdrawn each period as a subsidy to reduce mortgage payment.

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3
Q

Reverse Annuity Mortgage

A

at the end of the term, the accumulated balance of principal advances and accrued interest become payable

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4
Q

interest adjustment period

A

time between completion date and beginning of amort period. ie. interest accruing loan for the period

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