FHCE 3300 Study Guide - Midterm Guide: Mortgage Insurance, Down Payment, No Surprises

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3300
• Professor: Kim Skobba

Document Summary

A mortgage insurance policy protects your lender in case you default on the payments. As a borrower, you pay the premiums, and the lender is the beneficiary. The amount of principal that you have paid down from your mortgage over time. The best way of computing this part of the equity puzzle is to subtract your current mortgage amount from the original mortgage amount. Mortgage financing: most real estate purchases are financed with a mortgage, a mortgage is a: Long-term loan on real property, which serves as collateral for the loan. Legal document that allows the lender to retain title or place a lien or claim on the title and gives the lender the right to demand full payment if the borrower fails to make payments. Interest rate is set at the start of the mortgage and remains unchanged through the life of the mortgage. Requires refinancing to take advantage of drop in interest rates.