Real Estate Notes for Test 3 Ch. 9 Mortgage Theory & Law Key Terms 1 mortgage 2mortgagor (borrower) 3mortgagee 4trustee 5Deed of Trust  title *regular, 2  Lien *Deed of trust, 3 *promissory • release of lien, deed of trust • default • trustee, lender *21 *acceleration *alienation *property taxes *deficiency • 7 2. deed in lieu of foreclosure • deliquent  judicial  3rd party trustee Non- Judicial 1. Use trustees 2. less expensive 3. trustee system 4. more common in TX 5. Less expensive to lenders 6. should result in lower rates the last two blanks are to be kept blank

Ch 10 Lending Practices •
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• Taxible Income • Income, Higher

Ch 11 The Loan & The Consumer • Federal Housing, National Housing  Lender, Insurer • Construction, Lender • 97%, 3% • 1.5, 2.25%, upfront mortgage insurance premium • ½ • 5%, 95% • 20% • 1%, 1% • 80% • Sub-Prime, Foreclosure  Truth in Lending • Financed • The total charges related to financing 1. Amount Financed 2. Finance Charge (Interest) 3. APR 4. Total Payments  Regulation Z • Trigger • Five Examples: 5%, $500 down, 90% financing Example: Only $600 a month Example: Only 60 easy payments Example: Easy 15 year term Example: We will finance for only $500  Five 1. Cash price of loan 2. Amount of down payment 3. Number amount frequency of payments 4. APR 5. Total amount payment *** All other charges related to the loan • Approve lonas that will be paid back in full and on time. • Underwriter (Underwater?) • VA, FHA, Conventional • Down payment • Borrowed • Purchase (money), Refinance, Home Equity & Home Improvements • Owner- occupied, investment • 25% 2 main reasons: Rent property value