Personal Finance- week 5

Foreclosure (лишение права выкупа)

The repossession of real property by a lender after a default on the mortgage by the borrower, assuming the real property has acted as collateral for the financing.

Down payment (авансовый платеж)

The share of the purchase price paid in cash at the time of purchase; also called earnest money.

Private mortgage insurance (Частное ипотечное страхование)

Insurance that insures the lender against any losses incurred by the costs of a loan default.

Closing costs

Transaction costs of the home purchase, including appraisal fees, title, fee, and title insurance; closing costs are paid at the closing or purchase of the home.

Fixed-rate mortgage (ипотека с фиксированной процентной ставкой)

A mortgage loan with a fixed interest rate over the life of the loan.

Mortgage amortization (амортизация ипотечного кредита)

A schedule of mortgage payments showing the amounts of each payment that pay interest and that pay principal

Mortgage factor

The mortgage payment per $1,000 of principal.

Adjustable-rate mortgage (ARM) (Ипотека с регулируемой процентной ставкой)

A mortgage loan with a floating or adjustable rate of interest

Rate cap (ограничение ставки)

A limit on the potential adjustment to the mortgage interest rate.

Payment cap

A limit to the potential adjustment to the mortgage payment

Balloon mortgage (Воздушная ипотека)

A mortgage that offers a shorter maturity but with lower payments and a large principal balance due at maturity

A home equity loan (Кредит под залог жилья)

A loan secured by home equity value

A home equity line of credit (HELOC) (Кредитная линия под залог собственного капитала)

A loan secured by home equity value, structured such that principal may be borrowed only as needed, and interest paid only on the balance outstanding.

Reverse mortgage (Обратная ипотека)

A loan secured by equity value, most often used for elderly homeowners to extract equity value while retaining home ownership. Typically, the loan balance is payable at the home owner’s death.

Points

One percent of the mortgage value, used as prepaid interest paid at time of purchase.

Appraisal

An opinion of the market value of a property done by a professional appraiser who is familiar with the real estate market and with housing, and who has been certified to do appraisals

Title search (Поиск по названию)

A search of public records to determine if there are any restrictions or allowances on the property to be purchase, or any liens, or debts such as a mortgage balance, overdue taxes, a mechanic’s lien, and so on, that must be paid if the property is sold.

Title insurance (Титульное страхование)

Insurance purchased by the purchaser of the property that insures against any omission from the title search.

Property transfer tax (Налог на передачу собственности)

A tax on the transfer of title to property; a transaction cost of purchasing property.