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15 Cards in this Set
- Front
- Back
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A conveyance of property to a creditor as security for payment of a debt with a right of redemption upon payment of the debt |
Mortgage |
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Application appraisal and credit check commitment |
Steps to Mortgage financing |
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central document in the financing process are designed to eliot info about the financial ability of applicant and the property |
Application |
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reviews application and applies loan qualifications ratios and considers the stability/future of income as well personal/financial info |
Appraisal/ credit check |
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a letter from the lender agreeing to make the loan |
Commitment |
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Lenders allowable ratio of principal, interest and tax (PIT) payment plus other personal debt to gross monthly income of the mortgage applicant |
TDS Ratio Total Debt Service Ratio |
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Lender’s allowable ratio of principal, interest and tax (PIT) payment to gross monthly income of the mortgage applicant. |
GDS Ratio Gross Debt Service Ratio |
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The debt owed; as distinct from interest. |
Principal amount |
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Interest charged for a specific period with no compounding. |
Simple Interest |
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Interest charged at specific intervals during the loan term with earned interest being reinvested |
Compound interest |
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The stated rate on a loan. |
Nominal Interest rate |
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Rate of interest on a loan which includes compounding, as opposed to the stated rate. For example, a loan rate might be published at 10%, but with compounding the true (effective) rate is somewhat higher based on the number of compounding periods. |
Effective Interest Rate |
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A mortgage payment in which the payment amount remains constant, but interest and principal components may vary. |
Blended Payment |
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A factor, typically expressed as weekly, bi-weekly, semi-monthly or monthly, that is used to calculate mortgage payments. |
Mortgage payment factor |
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The gradual retirement of a debt by means of partial payments of the principal at regular intervals. |
Amortization |
