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a separate account where funds are held to pay property taxes, homeowne…

Question

a separate account where funds are held to pay property taxes, homeowner’s insurance, and sometimes pmi
the amount borrowed
the initial upfront portion paid for the home
the process of spreading out a loan into a series of fixed payments over time
down payment
principal
escrow
amortization

Explanation:

Step1: Match "down payment"

The term "down payment" is defined as the initial upfront portion paid for the home. So connect "down payment" to "the initial upfront portion paid for the home".

Step2: Match "principal"

"Principal" refers to the amount borrowed. So connect "principal" to "the amount borrowed".

Step3: Match "escrow"

"Escrow" is a separate account where funds are held to pay property taxes, homeowner’s insurance, and sometimes PMI. So connect "escrow" to that definition.

Step4: Match "amortization"

"Amortization" is the process of spreading out a loan into a series of fixed payments over time. So connect "amortization" to that definition.

Answer:

  • down payment → the initial upfront portion paid for the home
  • principal → the amount borrowed
  • escrow → a separate account where funds are held to pay property taxes, homeowner’s insurance, and sometimes PMI
  • amortization → the process of spreading out a loan into a series of fixed payments over time