PSI Real Estate Exam: Financing 74 Questions with 100% Correct Answers | Verified

Acceleration Clause - ️️A contract clause that gives the lender the right to declare the entire loan amount due immediately because of borrower's default, or other reasons as stated in the contract. Adjustable-Rate (ARM) Mortgage - ️️A mortgage that permits the lender to periodically adjust the interest rate so that the rate reflects fluctuations in the cost of money. Alienation Clause - ️️A contract clause that gives the lender certain stated rights when there's a transfer of ownership in property. (Often called a Due-On-Sale Clause.) Allodial System - ️️The system of land ownership where anyone can own land. Amortization - ️️When a loan a loan balance decreases because of periodic installments that pay principal and interest. Balloon Payment - ️️A final payment at the end of a loan term to pay off the entire remaining balance of principal and interest not covered by payments during the loan term. Blanket Mortgage - ️️1. Mortgage that covers more than one parcel of real estate. 2. Mortgage that covers an entire building or development, rather than an individual unit or lot. Bond-Type Securities - ️️Mortgage backed securities issued by GNMA, which are long-term, pay interest semi-annually, and provide for repayment at a specified date. Buydown - ️️When additional funds in the form of points are paid to a lender at the beginning of a loan to lower the interest rate and monthly payments on the loan. Collateral - ️️Property pledged as security for a debt.