Untitled Flashcards Set

Ad Valorem

Taxes based on the assessed value of an item, such as property or goods.

Deed of Trust

A legal document that involves a neutral third party holding the title to a property on behalf of the lender and borrower.

Closing Period for Residential Loans

Typically 30 days to close a residential loan.

Package Mortgage

A type of mortgage that includes both real property and personal property.

Benefits of Taxes

Taxes provide funding for public services such as roads and schools.

Assignment of Rights

Allows a lender to collect rent from a property owner.

Right of Redemption

Refers to a borrower's right to reclaim property after foreclosure.

Fair Credit Act

Legislation that allows consumers to access their credit report.

Superior Mortgage vs. Junior Mortgage

A superior mortgage is a primary loan secured by the property, while a junior mortgage is a secondary loan against it.

Buyer's Walkthrough Purpose

To confirm that agreed-upon repairs have been completed and no new issues have arisen.

Usury

Laws that prevent lenders from charging excessively high interest rates.

Budget Mortgage

A mortgage that includes principal, interest, taxes, and insurance (PITI).

Truth in Lending Act

Protects buyers by requiring clear disclosure of the terms of a lending agreement.

Adjusted Rate Mortgages

Mortgages typically tied to a benchmark interest rate, also known as an index.

Jumbo Loans

Mortgages for amounts greater than $800,000, which do not conform to conventional loan limits.

VA Loan Down Payment Requirement

The VA does not require a down payment for qualified buyers.

Escrow Title Company

The person or entity that oversees the closing process for both the buyer and seller.

Trustee in Deed of Trust

A neutral third party who holds the legal title to the property until the loan is repaid.

Secondary Market Purpose

To facilitate the buying and selling of mortgage loans.

Tax Exemption Requirement

To qualify for a tax exemption, one must live in the property for at least 2 years.

Loan to Value Ratio

A financial term used to express the ratio of a loan to the value of an asset purchased.

Construction Loan

A short-term loan used to finance the building of houses.

Loan Qualification Factors

Lenders assess income, credit history, and other factors when qualifying a borrower.

Escrow Account

An account where money is held during the closing process of real estate transactions.