A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.
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A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow.
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A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points.
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A report issued by a title insurance company that details the condition of a home's title. and provides guidelines for a title insurance policy.
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Regulations on the sale of securities to prevent consumers from investing in fraudulent or high-risk companies without being informed of the risks.
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A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage.
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A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid by the buyer rather than the seller.
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