8.1 HW Flashcardizz - Mortgage Loans/Down Payments

Front

What is a down payment?

Back

An initial payment made when something is bought on credit, typically a percentage of the total purchase price.

Tags

CCSS.6.RP.A.3C

Front

How do you calculate a down payment?

Back

Multiply the purchase price by the down payment percentage. For example, for a $200,000 home with a 20% down payment, the calculation is $200,000 x 0.20 = $40,000.

Tags

CCSS.6.RP.A.3C

Front

What is a mortgage?

Back

An installment loan that provides money for purchasing a house, secured by the property itself.

Front

What is an auto loan?

Back

An installment loan that provides money for purchasing a car, secured by the vehicle.

Front

What is the principal in a loan?

Back

The original sum of money borrowed or the amount still owed on which interest is calculated.

Tags

CCSS.7.RP.A.3

Front

What is interest in the context of loans?

Back

The cost of borrowing money, usually expressed as a percentage of the principal.

Tags

CCSS.7.RP.A.3

Front

What is the purpose of a mortgage?

Back

To allow individuals to purchase a home without paying the full price upfront, by borrowing money and repaying it over time.

Front

What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?

Back

A fixed-rate mortgage has a constant interest rate throughout the loan term, while an adjustable-rate mortgage has an interest rate that may change at specified times.

Front

What does it mean to be 'underwater' on a mortgage?

Back

When the outstanding balance on a mortgage is greater than the current market value of the property.

Tags

CCSS.7.NS.A.1D

Front

What is private mortgage insurance (PMI)?

Back

Insurance that protects the lender in case the borrower defaults on the loan, typically required when the down payment is less than 20%.