Mortgages and Lending Flashcardizz

Front

What happens to the loan amount when you put down a larger down payment?

Back

Decreases

Front

What happens to the cost of a loan when the APR is higher?

Back

Loan cost increases

Front

What is the consequence of having a poor credit score?

Back

May pay a higher APR

Front

You want to pay less in overall interest. Every loan APR is the same. Select the best mortgage for you: 10 year loan, 15 year loan, 20 year loan, 30 year loan.

Back

10 year loan

Front

A fixed rate means

Back

The rate will stay the same for the length of the loan

Front

ARM stands for

Back

Adjustable rate mortgage

Front

A very good credit rating would be

Back

800

Front

PITI stands for

Back

Principal, interest, taxes and insurance

Front

A 5/1 ARM means

Back

You have an adjustable mortgage where the rate is adjusted after 5 years

Front

For most installment purchases (like a mortgage), a ______________ is generally required. It is usually a certain percentage of the purchase price.

Back

Down payment