What is purchase money mortgage entered as?
What is purchase money mortgage entered as?
A purchase money mortgage is entered as: Debit to the seller and credit to the buyer. Credit to the seller and debit to the buyer. Debit to the buyer only.
What is meant by closing costs?
Share. Closing costs are fees and expenses you pay when you close on your house, beyond the down payment. These costs can run 3 to 5 percent of the loan amount and may include title insurance, attorney fees, appraisals, taxes and more.
What is a non Purchase Money Loan?
You borrowed money and secured your promise to repay with property that you did not purchase with the borrowed sum. Small banks and finance companies often accept household items or jewelry as collateral to repay a personal loan.
What is the purchase price of a loan?
It’s the amount on your sales contract or the amount your real estate agent worked so hard to get the seller to agree to. For example, a home is listed for $175,000, but your real estate agent gets them down to $150,000. Your purchase price is $150,000. That’s what you agree to pay.
What is the price paid for the use of borrowed money?
Interest—The price of using someone else’s money; the price of borrowing money. Interest rate—The price paid for using someone else’s money, expressed as a percentage of the amount borrowed.
Who does Regulation Z apply to?
Regulation Z protects consumers from misleading practices by the credit industry and provides them with reliable information about the costs of credit. It applies to home mortgages, home equity lines of credit, reverse mortgages, credit cards, installment loans, and certain kinds of student loans.
Is Reg Z the same as Tila?
Regulation Z is part of the Truth in Lending Act (TILA), which Congress passed in 1968. Many people use the two terms interchangeably. The legislation applies to mortgages, home equity loans, home equity lines of credit, credit cards, installment loans and private student loans.
What type of loan is covered by Regulation Z?
Regulation Z is part of the Truth in Lending Act of 1968 and applies to home mortgages, home equity lines of credit, reverse mortgages, credit cards, installment loans and certain student loans.
