test 2 fmgt

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  1. consumer loans
    can be single payment loan or installment loan
  2. balloon loan
    • loan that is paid back in single lump sum payment at maturity
    • also called single payment loan
  3. bridge loan/ interim loan
    short term laon that provides finding until longer term source can be secured or until additional fiancing is found
  4. installment loan
    repayment of both interest & principal at regular intervals, with payment levels set so loan expires at a preset date
  5. secured loan
    loan that is guaranteed by a specific asset
  6. unsecured loan
    loan that's not guaranteed by a specific asset
  7. loan amortization
    repayment of loan using equal montly payments that cover portion of principal & interest on the declining balance - amount going to interest starts high and steadily declines while principal starts off low and stadily increases
  8. prime rate
    interest rate banks charge to their most creditworhty or prime customers
  9. fixed rate loan - risks
    That the rate you are paying is going to be more than the rate being offered currently
  10. fixed rate loan - benefits
    That you stay at the same rate, do not have to worry about payments going up or down and that you can keep a low rate if the rates go up
  11. variable rate loan - risks
    That the rate swings up and down and you end up paying a much higher rate than you can afford
  12. variable rate loan - benefit
    That the rate may go down and pay a set amoung
  13. convertible loan
    a variable rate lan that can be converted into a fixed rate loan at borrower's option at specified dates in the future
  14. security agreement
    agreement that identifies whether the lenderor borrower retains control over the item being purchased
  15. default
    failure of a borrower to make a scheduled interest or principal payment
  16. note
    formal document that outlines the legal obligations of both the lender and the borrower
  17. insurance agreement clause
  18. acceleration clause
  19. deficiency payments clause
  20. recourse clause
  21. home equity loan
  22. pros of home equity loans
  23. cons of home equity loans
  24. types of student loans
  25. APR & loan disclosure statement
  26. calculate APR by simple interest method
    • APR = interest charge/principal
    • gives one year if less % * (360/# of days)
  27. bankruptcy types
  28. institutions offering high to low interest rates
  29. steps of smart buying
  30. auto lease types
  31. homework needed for car
  32. homework needed for home
  33. what to look for when house hunting
  34. condo terms
  35. house terms
  36. escrow terms
  37. financing & loan types terms
  38. assumable loans
  39. ARM loans
  40. prepayments
  41. initial rate
  42. negative amortization loans
  43. balloon loans
  44. graduated payment loans
  45. growing equity loans
  46. shared appreciation loans
  47. interest only loans
  48. PMI
  49. LTV
  50. subprime mortgage
  51. refinancing decision
  52. risk pooling
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test 2 fmgt
2011-11-04 16:11:01

test 2 fmgt
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