Details Title: Chapter 11 - Lending Practices Description: chapter 11 for test 2 for david butler's class Total Flash Cards: 11 Created: 10/27/2008 15:19:20		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Real Estate & Planning Flashcards
Cards in this set: Term amortized loan Definition a loan requiring periodic payments that include both interest and partial repayment of principal. Term baloon loan Definition any loan in which the final payment is larger than the preceding payments. Term difference between discount point and an origination fee? Definition Term discount point Definition charges made by lenders to adjust the effective rate of interest on a loan. Term loan to value ratio Definition a % reflecting what a lender will lend divided by the sale price or market value of the property, whichever is less. Term origination fee Definition the expenses a lender incurs in processing a mortgage loan Term partial loan Definition Term partially amortized loan Definition a loan that begins with amortized payments but ends with a balloon payment. Term PITI payment Definition a loan payment that combines principal, interest, taxes, and insurance. Term private mortgage insurance Definition a private mortgage insurance source to insure lenders against foreclosure loss. Term what is a point? Definition 1% of the loan amount