Chapter 7 Vocab review

Front

Regularly occurring expense, e.g., mortgage or property taxes.

Back

recurring cost

Front

Tenant stops paying rent and is kicked out.

Back

Eviction

Front

Proves to the seller you're a serious buyer; 1-5% of asking price.

Back

Earnest money deposit

Front

One-time cost examples: closing cost, down payment, title search.

Back

non-recurring cost

Front

Balloon Mortgage is:

Back

very large last payment, with all other payments relatively low.

Front

Fee to lower mortgage interest rate.

Back

Mortgage points

Front

A loan for a home is:

Back

mortgage

Front

Time to recover cost of points.

Back

Breakeven

Front

Bank takes possession and sells to recover money after 3 months of unpaid mortgage.

Back

Foreclosure

Front

Difference between fixed-rate and adjustable mortgage:

Back

Fixed rate stays the same; adjustable rate fluctuates.