What are the two parts to the mortgage called quizlet?

What are two types of mortgages quizlet?

Terms in this set (11)

  • Purchase Money Mortgage. a mortgage issued to the borrower by the seller of a home as part of the purchase transaction. ” …
  • Refinance. …
  • Home Equity Mortgage. …
  • Blanket Mortgage. …
  • Bridge Loan Mortgage. …
  • Open-ended Mortgage. …
  • Package Mortgage. …
  • Reverse Mortgage.

What are the two most common mortgage terms?

The most common mortgage terms are 15 years and 30 years, but some lenders offer terms as short as 8 years.

What is the term for a mortgage that is junior to another mortgage quizlet?

A mortgage which is subordinate to another mortgage is called a. first mortgage.

What type of loan is a mortgage quizlet?

Terms in this set (10) A loan that is not insured or guaranteed by the federal government. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate.

What type of mortgage is an ARM quizlet?

A mortgage loan in which the interest rate changes based on a specific schedule after a “fixed period” at the beginning of the loan, is called an adjustable rate mortgage or ARM. This type of loan is considered to be riskier because the payment can change significantly.

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What two parts of the mortgage go into escrow?

Your escrow is typically the combination of your property tax, homeowners insurance, and potentially private mortgage insurance (PMI). Your escrow account is set up to collect your monthly taxes and insurance to pay in a lump sum at the end of the year.

What are the three components of a mortgage?

While principal, interest, taxes, and insurance make up the typical mortgage, some people opt for mortgages that do not include taxes or insurance as part of the monthly payment. With this type of loan, you have a lower monthly payment, but you must pay the taxes and insurance on your own.

What are the parts of a mortgage loan What purpose does each part serve?

What are the parts of a mortgage loan? What purpose does each part serve? A Pledge and Collateral. A Pledge is a promise to pay; and Collateral allows a lender the right to foreclose if the borrower does not pay.

What does ICD stand for in mortgage?

TPM prepares your Initial Closing Disclosure (ICD) for your review and acknowledgment at least 3 days prior to your closing date. TPM verifies borrower’s employment within 10 days of closing date. TPM orders closing documents from attorneys, and provides borrower Final Closing Disclosure (FCD) prior to closing.

What is a mortgage offer called?

However, you can get a mortgage offer ‘in principle’. This is known as a ‘mortgage in principle’, an ‘agreement in principle’, or sometimes a ‘decision in principle’. A mortgage in principle is the amount the lender is prepared to lend you based solely on your financial circumstances.

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What are the types of mortgage?

What are the 6 mortgage types in India?

  • Simple Mortgage. Here, the borrower simply mortgages the immovable asset personally to avail a loan. …
  • Usufructuary Mortgage. …
  • English Mortgage. …
  • Mortgage By Conditional Sale. …
  • Mortgage By Title Deed Deposit. …
  • Anomalous Mortgage.