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11 Cards in this Set
- Front
- Back
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protects the lenders interest by providing collateral for the loan. |
security instrument |
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what are some security instruments? |
trust deed, mortgage & land contract |
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a pledge of property to the lender as security for the payment of the debt. |
mortgage |
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borrower |
mortgagor, obligor, promissor |
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lender |
mortgagee, obligee, promissee |
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is evidence of the debt and states the terms of repayment |
note |
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pledge property to the lender as collateral, without giving up possession of it |
Hypothecation |
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the borrower owes more than the original loan amount |
negative amortization |
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make low monthly payments for the first few years and then larger payments. |
graduated-payments mortgage |
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periodic increases in the monthly payments that are applied directly to the principal |
growing-equity mortgage |
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homeowners 62 years old or older borrow against the equity in their home and receive monthly payments
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reverse mortgage |
