O. principal

The actual amount of the loan or outstanding balance that the borrower
owes the lender

K. interest rate

The amount charged to borrow money, which is usually expressed as a
percentage

R. term

The timeframe given to repay a loan

C. amortization

The breakdown of the monthly mortgage payments throughout its term
from the start of the repayment plan all the way to the finish

P. promissory note

The evidence of debt, which states the amount of the money borrowed
and the terms of repayment

Q. security instrument

A recorded legal document given by the borrower to the lender, which
pledges the title of the property as insurance to the lender for the
full payment of the loan

I. fixed-rate mortgage

A type of repayment plan that is characterized by an interest rate that is
fixed and payments that are level for the life of the loan

B. adjustable-rate mortgage

A type of repayment plan with an interest rate based on a movable
economic index

H. equitable title

A security instrument that conveys title of real property from a trustor to
a trustee to hold as security for the beneficiary for payment of a debt

F. contract of sale

A contract in which the seller becomes the lender to the buyer. The
seller retains ownership to the property while the buyer makes payments
and occupies the property. Once all the terms of the contract are met,
the seller passes title to the buyer

N. prepayment clause

A penalty fee that a borrower is responsible for if a loan is paid off earl

G. conventional loan

Any loan made by lenders without any governmental guarantees

E. conforming loan

A loan with terms and conditions that follow guidelines set forth by
Fannie Mae and Freddie Mac

M. non-conforming loan

A loan that does not meet the standards of Fannie Mae and Freddie Mac

T. Uniform Residential Loan Application
(1003 form)

A standardized form for residential mortgage applications

Home Equity Line of Credit
(HELOC)

is a type of junior loan that taps into
a property owner’s equity and creates a revolving credit line

S. trust deed

security instrument that conveys title of real property from a trustor to a trustee to hold as security for the beneficiary for payment of a debt.

L. mortgagor

receives loan funds from a mortgagee and signs a
promissory note and mortgage
two parties in a mortgage are a ?(borrower) and a mortgagee
(lender).

A. acceleration clause

allows a lender to call the entire note due, on occurrence of a specific event such as default in payment, taxes, insurance,
or sale of the property.

D. beneficiary

The three parties to a trust deed are the borrower (trustor), lender (?), and a neutral third party called a trustee.