Mortgage and Finance Vocabulary

Fill in the blank: A claim, limitation, or liability placed against real estate is called an _________.

• Encumbrance

• Appraisal

• Deed

• Mortgage

Lily has just finished paying off her mortgage. The official document she receives, releasing her from the mortgage debt, is called a _________

• Deed of reconveyance

• Promissory note

• Lien waiver

• Mortgage application

Ava is buying her first home and is at the closing stage of her mortgage process. The fees the lender collects at this stage are called _________.

• Prepaid fees

• Late fees

• Appraisal fees

• Title insurance fees

Nora is buying her first home and is learning about the different fees involved in the mortgage process. Fill in the blank: A fee the lender gets paid for selling a mortgage is called a _________

• Loan origination fee

• Appraisal fee

• Title insurance fee

• Underwriting fee

Scarlett borrowed some money from Ava to buy a new laptop. The agreement between Scarlett and Ava to repay the loan is called a _________

• Promissory note

• Mortgage

• Lease

• Deed

Daniel is selling his home and wants to transfer his existing mortgage to the new buyer. What is the term for this provision in the mortgage contract?

• Assumption clause

• Acceleration clause

• Due-on-sale clause

• Prepayment penalty

What is the term for the following definition? 'Requires lenders to conduct an escrow analysis before establishing escrow accounts for borrowers.'

• Regulation X

• Regulation Z

• Regulation B

• Regulation C

Nora is reviewing her loan agreement and notices that most lenders charge interest on an annual basis, but interest compounds monthly. Therefore, the periodic interest rate is the annual interest rate divided by 12. What is the term for this definition?

• Periodic interest

• Simple interest

• Amortized interest

• Nominal interest

Benjamin invested some money in a savings account. Over time, he noticed that not only was he earning interest on his initial deposit, but he was also earning interest on the interest that had already been added to his account. What is the term for this phenomenon?

• Compounding

• Depreciation

• Amortization

• Simple Interest

Liam is planning to buy his first home and is learning about the mortgage process. What is a down payment?

• The cash a borrower pays up front before taking out a mortgage

• The interest paid on a loan

• The total amount borrowed

• The monthly payment on a mortgage