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| Mortgage is the ___ and the note is the ___. |
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| Holds legal and equitable title. |
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| Which mortgage has priority? |
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| What are loan discount points? |
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| What do loan discount points do for the lender? |
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| What do loan discount points do for the borrower? |
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| Annual Percentage Rate (APR) |
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| Total finance charges associated with the loan. May include points and origination fees. |
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| Purpose of the primary mortgage market? |
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| Lends directly to borrowers. |
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| Purpose of the secondary mortgage market? |
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| Investors that buy and sell mortgages, but do not lend to borrowers. |
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| Principal goes ___ and interest goes ___ with an amoritized loan. |
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| The large final payment at the end of the loan term. |
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| How does a straight term mortgage work? |
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| It calls for periodic payments of interest only with a final balloon payment of the principal. |
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| A mortgage with a rate that fluctuates based on economic indicators. |
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| A revolving account based on equity. |
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| The difference between market value and debt. |
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| Short-term financing where the money is disbursed in "draws" |
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| A loan with a partial release clause that covers more than one parcel of real estate that might not be adjoining. |
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| A loan that includes all personal property and appliances. |
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| An owner financed mortgage that the buyer gives to the seller. |
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| A contract where the seller retains legal title and the buyer hold equitable title with rights. |
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| When a borrower with an existing mortgage gets extra financing from another lender without paying off the first. |
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| A clause in a morgtate agreement that changes the priority of the mortgage from the first lien holder to the second. |
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| The purchaser agrees to make payments, but the mortgagor remains liable. |
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| The buyer gains full title and is fully responsible for mortgage payments |
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| When one contract is substituted for another. |
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| FHA ___ loans and VA ___ loans. |
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| Unlike a conventional loan, FHA and VA loans... |
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Definition
1. Have government backing
2. Must be owner-occupied 1-4 family residential buildings
3. Have no prepayment penalty |
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| A mortgage clause that requires a penalty for paying the full loan amount back early. |
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| A mortgage clause that restricts the sale of a house if a mortgage is still due on it. |
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| A mortgage clause that makes the full loan amount due immediately if the loan goes into default. |
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| A mortgage clause that states that the mortgagor-borrower will retain title to the mortgaged property when all the terms of the mortgage have been met. |
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| The process where a lender sells property securing a loan to repay the loan. |
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| Deed in Lieu of Foreclosure |
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| A deed given by the mortgagor to the mortgagee when the mortgagor is in default. |
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| Equal Credit Opportunity Act |
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Definition
| The law that requires lenders and other creditors to make credit equally available without discrimination. |
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| Fair Credit Reporting Act |
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Definition
| You have the right to inspect any credit file that exists concerning you. |
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| Truth in Lending - Regulation Z |
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Definition
| Borrowers are entitled to know the true cost of obtaining credit. |
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| A mortgage that requires smaller payments in the first years and larger payments in the later years that eventually levels off. |
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