Real Estate Fundamentals Chapter 10 Principles of Real Estate Finance Flashcards

Great Depressin 1929-39 down payments were?

Legal document through which a loan is obtained to purchase real property

The document used to secure payment of the loan to buy a property is called what?

A mortgage is provided by lenders who charge interest for the use of the borrowed money to make a profit. The loan amount is known as

Charging an excessively high rate of interest is known as ____ or _____ the buyer

The ______ _______ fee is a fee to originate or obtain the mortgage. It is often referred to as "points". In real estate, the word "point" means percent.

In real estate, the word "point" means what?.

Lenders require a ____ _____ _____ to provide insurance coverage for the amount of any unpaid mortgage balance if it is ever discovered that there is a defective title of the real property owner.

Pledging of real property as collateral security while the borrower still retains possession and use of the property is called what?.

This is done as a precaution so that in the event the borrower fails to perform on the contract, such as the failure to make the mortgage loan payments on schedule the lender can institute a legal procedure known as foreclosure to recover the balance of borrowed money.

An "_____ ______"is one in which regular payments consist only of interest. The loan principal is required to be paid at the end of a term loan in a large lump sum payment.

An ______ ______ is one in which the regular periodic, payments have a portion of each payment that is first applied to pay the loan interest. The remaining portion of the loan payment is then used to reduce the loan amount known as the principal.

All of the direct lenders that are available in the marketplace are collectively referred to as the ____ _____ _____

The Federal National Mortgage Association is known as ______ ______ and is the most dominant buyer of mortgages from the primary mortgage market.