21st Century Student FinLit -Getting Personal SW

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WHAT DOES THAT MEAN?

TERM

DEFINITION

adjustable rate mortgage amortization

“ARM”; a mortgage (home loan) with an interest rate that periodically changes; also called variable rate mortgage.

the process of paying off the balance of a loan over time.

appreciation

an increase in the value of an asset over time. property that is pledged as security for a loan. mortgage; a pledge of real property to secure a loan.

collateral

deed of trust depreciation down payment earnest deposit

a decline in the value of an asset over time.

a portion of the cost of a home, paid up front, usually from savings.

a money deposit of about 3% of the purchase price made upon signing of the sales contract.

easement

the right of another to use or cross over someone else’s land. PRODUCT PREVIEW the value of a piece of property, minus any debts secured by the property. a right in a property given by a debtor to a creditor to secure a debt. a home loan secured by an interest in the property. a fee equal to 1 percent of the loan amount. the amount borrowed.

encumbrance

a claim against a property by someone who is not the owner; liens and easements. an arrangement by which a neutral third party (escrow company) holds papers and funds during the sale period. a federal law that protects people from discrimination when renting, buying, or getting a home loan. the process by which a lender takes ownership of a mortgaged property when a borrower defaults on their loan. a home loan with an interest rate that remains the same for the entire term of the loan.

escrow

equity

Fair Housing Act

foreclose

fixed rate mortgage

lien

mortgage

points

principal

promissory note

a document in which one party promises to pay a sum of money to the other. land, as well as any physical property or improvements affixed to it. a fee a landlord requires a tenant to pay at the beginning of the tenancy to provide a fund for collecting unpaid rent, costs of repair, and cleaning.

real estate

security deposit

title

legal ownership of the property.

unlawful detainer a legal proceeding brought to evict a tenant. variable rate mortgage a home loan with an interest rate that changes; also called adjustable rate mortgage.

Access vocab ashcards at www.c21publishing.com

Chapter 9 | Home is Where the Mortgage or Lease Is 152

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