| A | B |
|---|
| mortgage origination | new morgtages |
| mortgage | a note, usually a long-term, secured by real property. |
| foreclosure | court-ordered sale of the property |
| fixed rate mortgages | loans with fixed interest rate for the life of the loan |
| balloon mortgage | interest and payment are fixed but at sme specific point the entire remaining balance of the loan is due in one single balloon payment. |
| adjustable rate mortgages(ARMs) | are those with rates that change over the course of a loan |
| buy-down mortgage | the borrower buys down, or prepays, part of the interest in order to get a lower rate. |
| point | value equal to 1% of the loan |
| shared appreciation mortgage | can lower interest fates for borrowers who agree to chare profits with the lender when the house is sold |
| PITI | principal, interest, taxes and insurance |
| escrw | minimum amount payed in advance |
| loan-to-value | value of loan compared to value of the asset |
| redlining | banks refusing to lend to certain neighborhoods |
| Fannie mae | federal national mortgage association |
| freddie mae | federal home loan mortgage corporation |
| ginnie mae | government national mortgage association |
| mortgage-backed securities | any risk associated with a specific loan becomes a art of this pool |
| negative equity | when amount owed on a home is more than current value on a home |
