Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Docsity AI
Docsity AI
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search for your university

Find the specific documents for your university's exams

Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

Understanding Mortgages: Notes, Mortgages, and Different Types of Mortgage Loans, Quizzes of Quantitative Techniques

University of Georgia (UGA)Quantitative Techniques

Definitions and explanations of key terms related to mortgages, including the difference between a note and a mortgage, fixed rate mortgages, adjustable rate mortgages, and various mortgage loan terms such as interest rate, index rate, and margin. It also covers the concept of interest rate caps and different amortization types.

Typology: Quizzes

2010/2011

Uploaded on 06/30/2011

lindsayellsworth
lindsayellsworth 🇺🇸

3 documents

1 / 4

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
TERM 1
What are the two elements of a Mortgage
loan?
DEFINITION 1
1. Note2. Mortgage
TERM 2
Note
DEFINITION 2
1. specifies the exact terms of the financial obligation2. 95-
99% of the paperwork3. contains all of the specifics 4. Says
what the interest rate looks like
TERM 3
Mortgage
DEFINITION 3
1. pledges the property as security for the note2. paragraph-
a page long3. ex: default on bank, they get property back
TERM 4
Fixed Rate Mortgage
DEFINITION 4
A fixed rate mortgage is a mortgage loan first developed by
the Federal Housing Administration (FHA) where the interest
rate on the note remains the same through the term of the
loan.
TERM 5
Adjustable Rate Mortgage
DEFINITION 5
A variable-rate mortgage, adjustable-rate mortgage, or
tracker mortgage is a mortgage loan with the interest rate on
the note periodically adjusted based on an index which
reflects the cost to the lender of borrowing on the credit
markets.
pf3
pf4

Partial preview of the text

Download Understanding Mortgages: Notes, Mortgages, and Different Types of Mortgage Loans and more Quizzes Quantitative Techniques in PDF only on Docsity!

What are the two elements of a Mortgage

loan?

  1. Note2. Mortgage TERM 2

Note

DEFINITION 2

  1. specifies the exact terms of the financial obligation2. 95- 99% of the paperwork3. contains all of the specifics 4. Says what the interest rate looks like TERM 3

Mortgage

DEFINITION 3

  1. pledges the property as security for the note2. paragraph- a page long3. ex: default on bank, they get property back TERM 4

Fixed Rate Mortgage

DEFINITION 4 A fixed rate mortgage is a mortgage loan first developed by the Federal Housing Administration (FHA) where the interest rate on the note remains the same through the term of the loan. TERM 5

Adjustable Rate Mortgage

DEFINITION 5 A variable-rate mortgage, adjustable-rate mortgage, or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.

Interest Rate

Index Rate + Mortgage= Interest RateAn interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. TERM 7

Index Rate

DEFINITION 7 Market-determined rate that is beyond the control of either the borrower or the lender. TERM 8

Margin

DEFINITION 8 Lender's markup200-300 basis points TERM 9

Change Date

DEFINITION 9 date the interest rate changes each time TERM 10

Teaser Rates

DEFINITION 10 Initial temporary reduced interest ratesMarketing tool that gets you into a loanFOR YEAR 1 ONLYcaps do not apply to the teaser rate

Balloon Payment

life of loan is only going to last certain amount of time- the big chunk of extra either pay in cash or take out another loan when that time comes to an end