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Chapter 7 - Loan types, Terms & Issues

Horizontales
__ Equity Loans - A type of second mortgage taken out against the equity that a homeowner has built up in the home.
__ loan lowers the interest rate for the buyer, thereby reducing the amount of the monthly payment.
A type of loan offered at a rate above prime to individuals who do not qualify for prime-rate loans usually due to low credit rating.
__ End Mortgage - Can be increased periodically and has an agreed upon ceiling.
__ rate mortgages have a rate that can move up or down depending on the index that the rate is tied to.
Loans not backed by a government agency (not FHA, VA, or USDA).
__ Agreement - Agreements with other lenders to purchase an interest in a loan that the first lender holds or originated.
__ Mortgage Insurance (PMI) - Protects the lender against loss of a portion of the loan in case of borrower default.
__ Payment Mortgage - A type of fixed-rate mortgage with an amortization schedule that provides lower payments early on that then increase over time.
Verticales
__ to-Value - The percentage of the loan balance to the original price.
The borrower in a non-__ loan is not personally liable on the loan. Therefore, a deficiency judgment cannot be imposed on the borrower.
__ Mortgage - The owner can receive a lump sum or monthly receipts of cash by pledging the equity of the home.
__ Mortgage - A single mortgage that is secured by multiple properties.
__ rate mortgages have a set interest rate that does not change for the entire term of the mortgage.
__ lending - A term used to describe a wide range of unfair financial practices by lenders, appraisers, mortgage brokers and home improvement contractors.
__ Loan requires systematic payments be made to reduce the balance of the loan as well as provide for the payment of interest on the loan.