Unit 7 Vocabulary

A mortgage in which the monthly payment and the APR may change as specified in the signed agreement.

• adjustable-rate mortgage
• adjustment period
• unfurnished
• tenant
• fixed rate mortgage

The period between rate changes in an ARM.

• adjustment period
• amortization table
• transfer tax
• single-family home

A loan statement that lists the unpaid principal, the monthly payment, and the amounts allocated to principal and interest.

• amortization table
• apartment
• title search
• security deposit

A home that is rented or leased by the people who live in it.

• apartment
• application deposit
• title
• recurring costs

Money that covers the cost of processing the application for a rental.

• application deposit
• arrears
• tenant
• real estate tax
• security deposit

The manner that interest occurs throughout the month before it is paid with the mortgage payment.

• arrears
• assessed value
• single-family home
• property tax

An assigned value made by the local government on the value of a house for taxation purposes.

• assessed value
• back-end ratio
• security deposit
• prepaid interest

A ratio between the borrower's regular monthly debts and monthly gross income.

• back-end ratio
• balloon mortgage
• recurring costs
• points
• front-end ratio

A mortgage with a very large last payment, with all other payments being relatively lower.

• balloon mortgage
• breakeven
• real estate tax
• PMI
• adjustable-rate mortgage

When the expenses and revenue are equal.

• breakeven
• BTU
• property tax
• origination points