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20 Cards in this Set
- Front
- Back
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A pledge of real property as security for a promissory note?
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motgage
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The action of pledging real property is called?
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hypothecation
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What is another name for a lien?
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encumberance
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Is a deed of trust a deed?
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no it is a mortgage in texas that contains "power of sale" clause allowing for non-judicaial foreclosure
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Does a lender have to go to court to foreclose on a deed of trust mortgage?
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NO, the trustee will foreclose
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3 parties in a deed of trust mortgage?
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trustor=borrower
beneficiary=lender trustee=3rd party to release lien when paid or foreclose if default |
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What one party signs a deed of trust?
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buyer
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What is subordination clause?
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allows meders to take lower lien positions behind 1st mortgage
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Assumption clause
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states if loan is assumed, original owners are still liable unless they get a release of liability from lender
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difference in straight assumption and "subject to" assumption?
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straight=aka loan novation, new buyer is approved and no liability for seller
subject to= buyer takes over payments but not liability, seller is still responsible |
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How is interest paid in a fixed rate amortized loan?
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in arrears
*bi-weekly payments pay off loan faster |
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What is a term loan?
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interest only til end of term, zero amortization
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What does budget loan include?
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PITI taxes and insur are put in escrow account
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What is the minimum withdraw for home equity LOC loan?
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$4k
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What actions would tighten money supply br Federal Reserve?
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increase in reserve requirements
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What is a point?
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1% of loan amount
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Difference in MIP and PMI?
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MIP is on FHA loan
PMI is on high LTV conventional loans |
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What is regulation Z?
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Truth in Lending or Consumer Credit Protection Act?
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Who administers truth in lending act?
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Federal Trade Commision
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To not violate Reg Z what two terms are ok in advertising without full disclosure?
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cash price or APR
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