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

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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