Financing Asset Acquisition Flashcards
Can unsecured debt be discharged in bankruptcy.
Yes, in chapter 7
Can secured debt be discharged in bankruptcy
No
Why is payment cap not a good idea?
Because payment cap can result in negative amortization if rates go high and the payment cap is reached.
What is a principal cap?
The maximum amount by which the loan principal can grow in a negative amortization situation.
How is the minimum payment calculated on a revolving line of credit (HELOC or credit card)
The interest for that month is the minimum payment for the month.
What is a 2-1 temporary buy down rate mean?
2 percent rate reduction for 1 year
What is a Jumbo loan? Why is it not good.
Jumbo loan is above a certain threshold (750K).
Jumbo loans carry higher interest, so it is better to take a conforming loan and a second mortgage.
What is a NIV loan?
No income verification loan.
