Vocabulary Builder

Choose the term that best fits the definition. Write the letter of the answer

in the space provided. Some terms may not be used.

a. adjustablerate mortgage b. balloonmortgage c. buy-down mortgage d. escrow e. FannieMae f. fixedrate mortgage g. foreclosure h. FreddieMac i. GinnieMae j. loan-to-value (LTV) k. mortgage l. mortgage-backed securities m. mortgage origination n. negativeequity o. PITI p. point q. redlining r. shared appreciation mortgage (SAM)

1. Value of loan compared to value of asset 2. Prepaying part of the interest to get a lower mortgage rate 3. When banks refuse to lend in certain neighborhoods 4. Mortgage with changing interest rate 5. A note secured by real property 6. A value equal to 1 percent of loan principal 7. A mortgage in which the entire remaining balance of the loan is due in one single payment 8. Principal, interest, taxes, and insurance 9. Conventional mortgage 10. When the amount owed on a home is more than the current value of the home