Finance
What is a 'hard money loan' in Idaho real estate?
AA government-backed loan with strict requirements
BA short-term, high-interest loan from private investors secured by real property, often used when conventional financing is not available✓ Correct
CA loan with a fixed interest rate that cannot change
DA loan that is difficult to qualify for due to strict credit requirements
Explanation
Hard money loans are short-term, asset-based loans from private lenders (not banks), secured by real estate. They have higher interest rates but faster approval.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
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