How Mortgages Work
Across
- 2. A mortgage with a constant interest rate throughout the term of the loan.
- 5. A financial arrangement where a third party holds and regulates payment of funds required for two parties involved in a transaction.
- 7. Ratio A personal finance measure that compares an individual’s debt payment to his or her overall income.
- 10. The legal process by which a lender takes control of a property when the borrower fails to repay the loan.
- 12. The process of replacing an existing loan with a new loan that usually has better terms.
- 14. The cost of borrowing money, typically a percentage of the loan amount.
- 16. The process of spreading out a loan into a series of fixed payments over time.
- 17. History A record of a borrower’s responsible repayment of debts.
- 18. The difference between the market value of a property and the amount still owed on the mortgage.
- 20. Equity Loan A type of loan in which the borrower uses the equity of their home as collateral.
- 22. Payment An initial payment made when something is bought on credit.
- 23. Failure to repay a loan according to the terms agreed to in the promissory note.
Down
- 1. An individual or organization taking out a loan from a lender.
- 3. A legal document evidencing a person’s right to or ownership of a property.
- 4. The original sum of money borrowed in a loan.
- 6. A professional assessment of a property’s value.
- 8. A loan specifically for purchasing property where the property is collateral.Collateral - An asset that a borrower offers to a lender to secure a loan.
- 9. Costs Fees paid at the closing of a real estate transaction.
- 11. The process a lender uses to determine if the risk of offering a mortgage to a particular borrower under certain parameters is acceptable.
- 13. A mortgage with an interest rate that can change periodically.
- 15. Note A financial instrument that contains a written promise by one party to pay another party a definite sum of money.
- 19. An organization or individual that loans money to borrowers.
- 21. Rate An initial, temporarily low interest rate on an ARM.
- 24. Ratio A financial term used by lenders to express the ratio of a loan to the value of an asset purchased.