O. principal
The actual amount of the loan or outstanding balance that the
borrower
owes the lender
K. interest rate
The amount charged to borrow money, which is usually expressed as a
percentage
R. term
The timeframe given to repay a loan
C. amortization
The breakdown of the monthly mortgage payments throughout its term
from the start of the repayment plan all the way to the finish
P. promissory note
The evidence of debt, which states the amount of the money borrowed
and the terms of repayment
Q. security instrument
A recorded legal document given by the borrower to the lender, which
pledges the title of the property as insurance to the lender for
the
full payment of the loan
I. fixed-rate mortgage
A type of repayment plan that is characterized by an interest rate
that is
fixed and payments that are level for the life of the loan
B. adjustable-rate mortgage
A type of repayment plan with an interest rate based on a movable
economic index
H. equitable title
A security instrument that conveys title of real property from a
trustor to
a trustee to hold as security for the beneficiary for
payment of a debt
F. contract of sale
A contract in which the seller becomes the lender to the buyer. The
seller retains ownership to the property while the buyer makes
payments
and occupies the property. Once all the terms of the
contract are met,
the seller passes title to the buyer
N. prepayment clause
A penalty fee that a borrower is responsible for if a loan is paid off earl
G. conventional loan
Any loan made by lenders without any governmental guarantees
E. conforming loan
A loan with terms and conditions that follow guidelines set forth by
Fannie Mae and Freddie Mac
M. non-conforming loan
A loan that does not meet the standards of Fannie Mae and Freddie Mac
T. Uniform Residential Loan Application
(1003 form)
A standardized form for residential mortgage applications
Home Equity Line of Credit
(HELOC)
is a type of junior loan that taps into
a property owner’s
equity and creates a revolving credit line
S. trust deed
security instrument that conveys title of real property from a trustor to a trustee to hold as security for the beneficiary for payment of a debt.
L. mortgagor
receives loan funds from a mortgagee and signs a
promissory
note and mortgage
two parties in a mortgage are a ?(borrower) and
a mortgagee
(lender).
A. acceleration clause
allows a lender to call the entire note due, on occurrence of a
specific event such as default in payment, taxes, insurance,
or
sale of the property.
D. beneficiary
The three parties to a trust deed are the borrower (trustor), lender (?), and a neutral third party called a trustee.