Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Mortgage Lending > Mortgage Vocabulary > Flashcards

Mortgage Vocabulary Flashcards

1
Q

Earnest Money Deposit

A

Deposit on property from buyer to seller given as part of the purchase price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Equity

A

Equity is the difference between what you owe on your mortgage and what your home is currently worth.

ex. market value : 200,000
equity : 50,000
what is owed : 150,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Escrow

A

Escrow is a legal arrangement in which a third party temporarily holds money or property until a particular condition has been met (such as the fulfillment of a purchase agreement).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Buy Down

A

A buy down is a way for a borrower to obtain a lower interest rate by paying discount points at closing.
(Although the payments will be initially low they will increase when the subsidized expires)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Subsidized

A

Supported Financially

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

PITI

A

Principal Interest Tax & Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Realtors

A

a person who acts as an agent for the sale and purchase of buildings and land; a real estate agent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Real Estate Agent

A

A real estate agent is a licensed professional who guides buyers and sellers through real estate transactions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Lock

A

A lenders guarantee that the mortgage rate quoted will be good for a specific number of days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Impounds

A

Impound accounts hold funds to pay your property taxes, homeowners insurance, and perhaps other accounts like flood insurance or HOA dues.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Installments

A

Monthly Payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Investor

A

A money source for a lender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Firm Commitment

A

A promise by FHA to insure a mortgage loan for a specific property and borrower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Hazard Insurance

A

A form of insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Flood Insurance

A

Insurance for homes/ Condos in flood zone areas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

DSCR

A

Debt Service Coverage Ratio

The DSCR shows investors whether a company has enough income to pay its debts.

17
Q

ATR

A

Ability to repay

18
Q

DTI

A

Debt to Income

19
Q

NIV

A

No Income Verification

20
Q

Acceleration Clause

A

An acceleration clause is a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain requirements are not met.

21
Q

Amortization

A

Amortization is a way to pay off debt in installments that include varying amounts of interest and principal payments over the life of the loan.

22
Q

BPO

A

Broker’s Priced Opinion

23
Q

AMC

A

Appraisal Management Company

24
Q

Appraisal

A

An estimate of the value of the property made by an “ appraiser “

25
Q

Annual Percentage Rate (APR)

A

Annual Percentage Rate (APR) is the interest charged for borrowing that represents the actual yearly cost of the loan expressed as a percentage.

26
Q

Balloon Mortgage

A

a mortgage in which a large portion of the borrowed principal is repaid in a single payment at the end of the loan period.

27
Q

Mortgage Title

A

A house title is the ownership record of a property. The title shows who’s owned the property in the past, contains a physical description of the property and shows any liens on it. If you just bought the home, your mortgage will be on the title as a lien.

28
Q

Cash Flow

A

the total amount of money being transferred into and out of a business, especially as affecting liquidity.

29
Q

Liquidity

A

Liquidity refers to how easily an investment can be sold for cash.

30
Q

Closing Cost

A

Closing costs are processing fees you pay to your lender when you close on your loan.

31
Q

Wet Funding

A

Wet Funding is a mortgage loan origination where closing and funds are supplied once loan documents have been signed by the borrower(s).
*Funds released immediately

32
Q

Dry Funding

A

In effect, a dry closing is a form of real estate closing in which all requirements are met except for the actual disbursement of funds.

Mortgage Lending (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions