TEST Flashcards
1
Q
A mortgage consist of 5 parts
A
Collateral Principal Interest taxes and insurance
2
Q
foreclosure
A
failure to repay the debt of the loan lender had the right to take back the property and resell it
3
Q
principal
A
the amount of money borrowed to buy the home
4
Q
Down Payment
A
put down a percentage of the home purchase price to lower your loan principal amount
5
Q
interest
A
what a lender charges to use the money you borrowed usually expressed as a percentage called the interest rate
6
Q
Amortization
A
Principal and interest make up the bulk of the monthly payment it reduces your debt over a fixed period of time
