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Real Estate Florida > Loans > Flashcards

Loans Flashcards

1
Q

Buy down

A

Fixed mortgage rate that is “bought down” for a temp period. Usually used by the seller for incentive for someone to buy their property. Have to pay a lump sum

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2
Q

Cash out Refinance

A

Refinances mortgage for a higher amount than the current loan balance with intention to pull out personal use money

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3
Q

Cert of deposit index

A

One of the indexes to determine the interest rate changes on some ARMs. Average of what banks are paying in cert of deposit

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4
Q

certificate of eligibility

A

The document issued by veterans administration that certifies a veterans eligibility for a VA loan

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5
Q

Certificate of reasonable value

A

Once the appraisal has been performed on a property been bought with a VA loan the veterans administration issues a CRV

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6
Q

Cloud on title

A

Any conditions revealed by a title search that adversely affect the title to real estate usually cloud on title cannot be removed except by deed release or court action

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7
Q

Common area assets

A

Also known as homeowners association fees they are charges paid to the homeowners association by the owners of the individual units in a condo or a PUD and are generally used to maintain the property and common areas

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8
Q

Condominium conversion

A

Changing ownership of an existing building to the condominium form of ownership

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9
Q

Co-op or cooperative

A

A type of multiple ownership in which the residents of a multiunit housing complex own Shares in the co-op corporation that owns the property given each resident the right to occupy a specific unit or apartment

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10
Q

Cost of funds index

A

Another type of index that shows the changes of ARMs it is the weighted average cost of savings borrowings and advances of the financial institutions such as banks and savings and loans

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11
Q

Debt in lieu

A

Deed in lieu of foreclosure. Conveys title to the lender when the borrower is in default and wants to avoid foreclosure

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12
Q

Deed of trust

A

Basically recording mortgages

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13
Q

Discount points

A

Refer to any points paid in addition to the 1% loan origination fee a point is 1% of the loan amount

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14
Q

Earnest money deposit

A

deposit made by the potential home buyer to show that he or she is serious about buying the house

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15
Q

Effective age

A

And appraisers estimate of the physical condition of the building the actual age of the building could be shorter or longer that’s effective age

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16
Q

Encroachment

A

An improvement the intrudes illegally on another’s property

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17
Q

Equity

A

The difference between the fair market value of the property and the amount still owed on the mortgage and other liens

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18
Q

bridge loan

A

People use these when you haven’t sold your previous property but want to close on your purchase property.

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19
Q

Escrow analysis

A

Once a year your lender will perform in escrow analysis to make sure they are collecting the right amount of money for the anticipated expenditures

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20
Q

Escrow disbursements

A

The use of escrow funds to pay for real estate taxes insurance and mortgage insurance another property expenses as they come due

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21
Q

Fannie Mae

A

The largest supplier home mortgage funds congressionally chartered shareholder owned company

22
Q

Fannie Mae’s community homebuyers program

A

That income-based community lending program which offers flexible underwriting guidelines to increase buying power and how are any must attend pre-purchased from our education

23
Q

Federal housing administration

A

And agency of the HUD its main activity is insuring residential mortgage loans made by private lenders it set standards for construction underwriting but is not lend money

24
Q

FHA mortgage

A

A mortgage that is insured by the FHA along with VA loan and FHA loan is often called a government loan

25
Q

Firm commitment

A

A lenders agreement to make a loan to a specific borrower on a specific property

26
Q

Government loan mortgage

A

Hey mortgage hasn’t shared by the Federal housing ministration or guaranteed by the department of Veterans Affairs or the rural housing service mortgages are not government loan or conventional loan

27
Q

Government national mortgage Association or Ginnie Mae

A

Same thing as Fannie Mae and Freddie Mac and providing funds to lenders for making home loans just that it provides for government loans like the FHA and the VA

28
Q

Grantee

A

The person to whom an interest in real property is conveyed

29
Q

Grantor

A

The person conveying an interest in real property

30
Q

Home equity conversion mortgage

A

Also known as a reverse annuity mortgage. lender makes payments to you enables older home owners to convert the equity they have in their in their homes to cash

31
Q

Homeowners warranty

A

A type of insurance often purchased by homebuyers that will cover repairs to certain items like AC and heating at if they were to break down within the coverage.

32
Q

HUD1

A

Also known as the closing statement or settlement sheet it provides an Itemised listing of the funds that were paid at closing

33
Q

Joint tenancy

A

A form of ownership that means each party owns the whole property and the ownership is not separate in the event of a death of one party at survivor owns the property in its entirety

34
Q

Jumbo loan

A

Illona exceeds Fannie Mae and Freddie Mac’s loan limits also known as a non-conforming loan

35
Q

Leasehold estate

A

A way of holding title to property where in the mortgage or does not actually own the property but rather has a record a long-term lease on it

36
Q

Line of credit

A

In agreement by a commercial bank or other financial institution to extend credit up to a certain amount for certain time to specified borrower

37
Q

Loan servicing

A

After you get the loan the come do you make the payments to a service senior loan they process the payments send the statements manage the account and provide collection efforts on delinquent loans ensure that the shirts and property taxes are made on the property etc.

38
Q

Merged credit report

A

A credit report which reports on the raw data pulled from two or more of the major credit repositories

39
Q

Mortgagor versus mortgagee

A

The mortgagee is the lender in the mortgage or is the borrower

40
Q

Mortgage banker

A

Generally assumed to originate and find their own loans with her so what on the secondary market usually to Fannie Mae Freddie Mac or Ginnie Mae

41
Q

Mortgage broker

A

Hey mortgage company that originate loans at places those loans with a variety of other lending institutions with him they usually have a preestablished relationship

42
Q

Mortgage life and disability insurance

A

A type of term life insurance often bought by borrowers the Val coverage decreases as the principal balance declines some policies also cover the borrower and event of disability and also death

43
Q

No cash out refinance

A

Not intended to put cash in hand the bar were instead the new balances come glad to cover the balance due on the current loan any cost associated with obtaining the new mortgage often referred to as a rate and term refinance

44
Q

Origination fee

A

On a government loan the loan origination origination fee is 1% a lot about but additional points and recharge would you call discount points one point equals 1% a lot about on conventional loans a lot origination fee refers to the number of points borrower pays

45
Q

Owner financing

A

A property purchase transaction in which the property seller provides all or part of the financing

46
Q

P ITI

A

Principal interest taxes and insurance in pounded loan that you have all these included if you do not have it and pounded account then the lender still calculate system out and use it as a part of determining your debt to income ratio

47
Q

P ITI reserves

A

The cash amount that a borrower must have on he had after making a down payment and pay all closing costs for the purchase of a home it must equal the amount that the buyer would have to pay for the PRT I for a predefined number of months

48
Q

Real estate settlement procedures act RESPA

A

I consumer protection law that requires lenders to get borrowers advanced notice of closing costs

49
Q

Replacement reserve fund

A

A fund set aside for replacement of common property and a condo or cooperative project particularly that would have a short life expectancy such as carpet

50
Q

Revolving debt

A

Kind of like a credit card which allows the customer to borrow against a preapproval line of credit when purchasing goods and services the borrower is billed for the amount that it actually borrowed plus any interest due

51
Q

Sale-leaseback

A

A technique in which a seller deeds property to a buyer for consideration and the buyer simultaneously leases the property back to the seller

52
Q

Seller carry back

A

An agreement in which the owner of the property provides financing often in combination with an assumable mortgage

Real Estate Florida (1 decks)

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