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A Mortgage in Which the Lender Collects Additional Money to Pay

question 28

Short Answer

A mortgage in which the lender collects additional money to pay hazard insurance and property taxes on the mortgaged property is called a(n)____________________ mortgage.


Definitions:

Default Rates

The percentage of borrowers who fail to make required payments on their loans within a specified period.

Secondary Mortgage Market

The market where home loans and servicing rights are bought and sold between lenders and investors.

Financial Institution

An establishment that conducts financial transactions such as investments, loans, and deposits.

Household Debt/income Ratio

A measure comparing the debt level of a household to its income, indicating financial health and borrowing capacity.

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