Learn terms and topics you need to understand for the real estate exam finance section: 

• Reverse Mortgages: - Minimum qualifying age for a reverse mortgage is 62. - Reverse mortgages allow homeowners to borrow against their home equity, receiving monthly payments from the lender instead of paying a monthly mortgage.
• Loan Qualification Ratios: - Lenders examine a borrower's monthly expenses, including housing, student loans, car payments, and credit card payments, compared to their income. - The ratio of total monthly debt payments to monthly income is known as the back-end ratio. - The front-end ratio focuses only on housing expenses.
• Property Value Changes: - Decrease in property value is referred to as depreciation. - The opposite, an increase in value, is known as appreciation. Interest and Loans: - The charge for using money over time, akin to rent for money, is interest. - For a $300,000 loan at 6% interest rate, the annual interest charge would be $18,000.
• Secondary Mortgage Market Agencies: - Fannie Mae, Freddie Mac, and Ginnie Mae are all part of the secondary mortgage market, facilitating the buying and selling of loans.
• FHA Loans: - Designed for homeowners with lower-than-average credit scores, FHA loans are federally backed mortgages.
• Rental Income and Expenses: After deducting expenses from rental income, what remains is net income. Legal and Financial Documents: - Borrowers sign promissory notes to outline the repayment terms and interest rates for their debt.
• Discount Points: - Borrowers can lower their interest rates by prepaying interest through discount points.
• Bridge Loans: - Short-term loans used by buyers to bridge the gap until permanent financing becomes available. 
• VA Loans: - Veterans purchasing homes with VA loans receive a certificate of eligibility indicating their loan qualification amount. 
• Primary vs. Secondary Mortgage Market: - The primary mortgage market involves borrowers obtaining loans directly from lenders. - The secondary mortgage market involves the selling of packaged loans to investors.
• Mortgage Payments (PITI): - PITI stands for Principal, Interest, Taxes, and Insurance, covering the comprehensive monthly payment made by homeowners. Origination Fees: - Fees charged by lenders to cover the expenses of processing a loan.