Virginia PSI Real Estate Exam Prep 2024

Virginia PSI Real Estate Exam Prep 2024 Acceleration Clause - ANS ️️ A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender. Adjustable Rate Mortgage (ARM) - ANS ️️ A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes. Adjustment Date - ANS ️️ The date the interest rate changes on an adjustable- rate mortgage Amortization - ANS ️️ The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time. Amortization Schedule - ANS ️️ A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero. Annual Percentage Rate (APR) - ANS ️️ This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, bu