Loan-to-value ratio A. Clauses, wheninduded in a real estate sales contract, that specify the conditions that must be satisfied before the contract becomes binding, such as the seller's return of the eamest money if the buyer cannot obtain satisfactory finandng within a specified period of time (for example, 30 days) Points or interest points B Aso referred to as PM; an insurance policy that protects the mortgage and insures the tender from a default by difference between the down payment required by the loan's loan to-value ratio and the actual, lower down payment The general name given to the fees a borrower pays when taking out a mortgage loan, where one point is equal to 1% of the amount borrowed Escrow accountC Foreclosure D The table that biresks down each monthly mortpage payment into its component principal and interest parts and reports the debt remaining after each payment is made throughout the life of the loan Amortization E. The maximum percentage of the property value that a lender is willing schedule Assumable mortgage to loan F. The term that describes the situation in which a homeowner is unable or unwiling to make the principai and interest payments on his or her mortgage, so the lender sues and by virtue of a court order can seize and sell the property Private mortgage G. A mortgage that can be effectively transfered or sold to a second, subsequent banrowing home buyer after being created by an initial borrower and buyer; the second buyer makes a down payment equal to the first buyer's (seller's) equity and then continues to make the payments for the remaining term of the original mortgage loen insurance Earnest money deposit H. The money a petential house buyer pledges to show his or her good faith when making an offer Front-end ratioA special reserve account at a financial institution in which funds-such es for home insurance and property taxes are held until they are paid to e third party 18 Contingency clauseAratio, which lenders use to quaity a pctential mortgage borower, that compares the appli cant's gross annuat incoma with the loen's total ennual principal ntorest, taxes, and insurance (PITI) costs