Unit 13: types of mortgages and sources of financing

A one-time mortgage insurance premium on FHA mortgage loans that is paid at closing.

• Up-front mortgage insurance program (UFMIP)

• Total obligation ratio (TOR)

• Purchaser money mortgage (PMM)

• Private mortgage insurance (PMI)

The truth in lending act requires creditors to disclose certain information. If certain credit terms called triggering terms are included in the ad. These terms include the amount of percentage of down payment, # of payments period (term) of repayment amount of any payment and the amount of any finance changes

• Loan estimate

• Triggering terms

• Nonconventional loan

• Mortgage fraud

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• Partially amortized mortgage

• Total obligations ratio (TOR)

• Up- front mortgage insurance program (UFMIP)

• Purchaser money mortgage (PMM)

A below-market interest rate usually offered for the first year on some adjustable-rate mortgages.

• Entitlement

• Index

• Teaser rate

• Margin

A source for the purchase and sale of existing mortgages.

• Secondary mortgage market

• Reverse mortgage

• Package mortgage

• Mortgage fraud

A form of mortgage that enables elderly homeowners to borrow against the equity in their homes so they can receive monthly payments needed to help meet living expenses.

• Principal

• Amortized mortgage

• Reverse mortgage

• Level payment plan

Any new mortgage taken as part of the purchase of retail property by the seller

• Loan estimate

• Partially amortized mortgage

• Purchase money mortgage (PMM)

• Private mortgage insurance (PMI)

…

• Package mortgage

• Index

• Entitlement

• Private mortgage insurance (PMI)

The party employing the services of a real estate broker; amount of money borrowed in a mortgage loan, excluding interest and other charges

• Adjusted-rate mortgage (ARM)

• Principal

• Biweekly payment

• Confirming loan

A source for the purchase of a mortgage loan by a borrower.

• Primary mortgage market

• Payment cap

• Home equity loan

• Mortgage lender