Match the terms associated with housing decisions on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term These are not necessarily complete definitions, but there is only one possible answer for each term Term Answer Description Loan-to-value ratio A mortgage that can be effectively transferred or sold to a second, subsequent borrowing 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 loan The term that describes the process in which a lender sues a borrower to prove default and asks the court to order the sale of the property to pay the debt A. Points or interest B. points Escrow account C. Also known as the maximum allowable monthly housing expense ratio a value that expresses the loan's total annual principal, interest, taxes, and insurance (PITI) costs as a percentage of the applicant's gross annual income and is used to with other criteria to determine whether an applicant qualifies for a mortgage loan Foreclosure D. An insurance policy that protects the mortgage lender from a default by its mortgage borrower and is typically required when the borrower uses a down payment that is less than 20% E. Amortization schedule A special reserve account at a financial institution in which funds-such as for home insurance and property taxes-are held until they are paid to a third party Assumable mortgage Private mortgage insurance Earnest money deposit F. The maximum percentage of the property value that a lender is willing to loan G. The general name that refers to and quantifies the fees lenders charge at the time they grant a mortgage loan H. The table that breaks down each monthly mortgage payment into its component principal and interest parts and reports the debt remaining after each payment is made Front-end ratio I. The clause in a real estate sales contract that makes the agreement conditional on one or more factors or events, such as the availability of financing or the results of a property inspection The money a potential house buyer pledges to show his or her good faith when making an offer Contingency clause J