ch 16 pf key terms

adjustable-rate mortgage

a mortgage with an adjustable interest rate and a fixed schedule of payments

amortization

the reduction of a loan balance through payments made over a period of time

appraisal

an estimate of the current value of a property

closing

meeting of a seller, a buyer, and a lender of funds to complete a transaction

Deed

\n

official document transferring ownership from seller to buyer

Equity

the value of a home minus the amount still owed on the money borrowed to purchase it

escrow account

an account where money is held in trust until it can be delivered to a designated party

fixed-rate mortgage

a mortgage with a fixed interest rate and a fixed schedule of payments

home equity loan

a loan based on the difference between the current market value of a home and the amount the borrower owes on the mortgage

landlord

the person who owns the property that is rented

lease

legal document that defines the conditions of the rental agreement between the tenant and the landlord

mobility

ability to move easily from place to place

mortgage

a long-term loan extended to someone who buys property

Points

extra charges that must be paid by a buyer to a lender in order to get a lower interest rate

private mortgage representatives

a special policy that protects a lender in case a buyer cannot make payments at all or on time

Refinance

to obtain a new mortgage to replace an existing one

renters insurance

a type of insurance that covers the loss of a tenant’s personal property as a result of damage or theft

security deposit

an amount of money paid by a tenant to the owner of a property to guard against any financial loss or damage that the tenant might cause

tenant

a person who pays for the right to live in a residence owned by someone else

title insurance

a type of insurance that protects the buyer if problems with the title are found later