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Interest paid on a real estate mortgage loan is normally paid annually and in advance. A mortgage, which is repaid in regularly scheduled equal installments, is called a balloon mortgage. Money for tax and insurance payments that accompanies principal and interest is usually placed in an escrow or trust account. In order to ensure that the mortgagor has enough money to pay yearly property taxes and hazard insurance, the lender may insist on a budget mortgage. A mortgage lender will lend based on a proportion of the appraisal or sale price, whichever is less. This is called the loan-to-value ratio. The homeowner has made regular mortgage payments over ten years and the housing values in the neighborhood have steadily risen. The equity has steadily increased. The buyer normally pays the discount points when a conventional loan is taken out to purchase a residence. Loan points increase the yield to the lender. The role of the FHA in residential mortgage lending is loaning the money. Under section 203(b), the FHA lends to the secondary market