Finance
What is a 'hard money' loan in Oregon real estate?
AA government-backed loan for low-income buyers
BA short-term, asset-based loan from private lenders at higher interest rates, used when conventional financing is unavailable✓ Correct
CA loan requiring a 50% down payment
DA fixed-rate loan from a credit union
Explanation
Hard money loans are short-term, asset-based financing from private lenders (not traditional banks) secured by real estate. They carry higher interest rates (often 8–15%) and shorter terms.
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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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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.
Math Concepts
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