Real Estate Financing Basics Quiz

A loan secured by real estate, typically with fixed payments over a specified period.

The upfront payment made by the buyer, typically a percentage of the total purchase price.

Insurance required for conventional loans with low down payments, protecting lenders against default.

The total cost of borrowing, expressed as an annual rate including fees and interest.

A lump sum payment due at the end of a loan term, often associated with balloon mortgages.

The ratio of the loan amount to the appraised value of the property, used to assess risk.

A loan typically used for personal expenses and not secured by real estate.

A financial institution providing assurance of a loan amount, subject to conditions.

A measure comparing debt payments to income, indicating a borrower's ability to manage additional debt.

A loan with a consistent interest rate over the loan term, providing predictable payments.

A schedule showing how loan payments are allocated between principal and interest over the loan term.

An investigation ensuring the seller has legal right to transfer ownership, free of liens or disputes.

A legal right giving a creditor interest in a property until a debt is satisfied.

A transaction allowing investors to defer capital gains taxes by reinvesting proceeds from the sale of one property into another.

A legal document indicating the removal of a lien holder's claim on a property.