Things associated with mortgages

Question 1

Cap rate (maximum)

Answer 1

max amount that interest can increase or decrease

Question 2

Index

Answer 2

interest indicator that interest is based on

Question 3

Margin (Gap)

Answer 3

amount added to the index to determine rated

Question 4

P.I.T.I

Answer 4

Private Mortgage Taxes Insurance

Question 5

P.M.I

Answer 5

Private Mortgage Insurance

Question 6

Usury (usually illegal-usually excessive)

Answer 6

excessive interest

Question 7

Blanket (Patches)

Answer 7

more then one piece of property

Question 8

Graduated Payment (going to school)

Answer 8

payment starts low and rises over time

Question 9

Open End Mortgage (loop around)

Answer 9

Mortgagor can re-borrow against principal that has been paid so far

Question 10

Package Mortgage (the whole package)

Answer 10

includes home, furniture and other personal property

Question 11

Participation (takes part in)

Answer 11

lender is entitle to a share of the property’s income or has share of equity

Question 12

Reverse Annuity (borrow equity)

Answer 12

owner borrows against equity in home and receives monthly tax free payments from lender