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17 Cards in this Set
- Front
- Back
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Promissory notes |
Evidence of debt |
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Amortization |
Liquidation |
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Level payment |
Amortization
Payment applied to principle increases |
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Negative amortization |
Payments do not cover interest |
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GPAM Loan |
G radual P ayment A djustable M ortgage L oan
Defers some principle payments |
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Interest rates affected by |
NOT unemployment |
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Simple interest |
Home loans |
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Variable interest |
Rate can increase or decrease |
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Effective interest rate |
APR - rate that's actually paid |
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Nominal interest rate |
Named in the note |
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Negotiable instrument |
NOT a mortgage |
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Straight note |
Payment covers interest only - no principle payments made |
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Balloon loan |
Partially amortized
Entire balance due on last installment |
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Holder in due course |
No knowledge of defects |
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Discounting |
Selling for less than full value |
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Default |
Foreclose for full worth ($15,000) |
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More than one borrower |
Jointly and severally |
