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Exam (elaborations)

HUD Certification Exam

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HUD Certification Exam

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1 of 115

Definition



A provision in some loans that charges a fee to a borrower who makes
mortgage payments ahead of schedule.



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Due-on-sale Pre-Payment Penalty

, Hard Penalty Loan Acceleration


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2 of 115

Definition



Lenders inquire about how much money a borrower has saved to pay a
deposit or down payment for the home intended to purchase.



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Character Principal




Collateral Capital


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3 of 115

Definition



An arrangement in which the owner of a dwelling or structure does not
own the land on which the structure resides.



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, Contract Rent Excess Rent




Ground Rent Economic Rent


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4 of 115

Term



The midpoint in the family income range for a metropolitan statistical
area of for the non-metropolitan parts of a state



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Location Of Your Home Closing Costs




Interest Only Terms Area Median Income


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5 of 115

Definition

, A mortgage loan backed by private lenders. Loans with a DP less than
20% of purchase price may require private mortgage insurance (PMI)

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Adjustable Rate Mortgage Conventional Loan




Nonconforming Loan Home Equity Loan


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6 of 115

Definition



An initial temporary interest rate on an ARM that results in lower
mortgage payments and only remains in effect for a short period of
time before increasing.



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Teaser Rate Index Rate




Discount Rate Annual Percentage Rate


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