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| 12-Month Treasury Average (MTA) |
| This is an index that is the 12 month average of
the monthly average yields of U.S. Treasury securities adjusted to a
constant one year maturity. It is computed by averaging the previous
12 monthly values of the 1-Year Constant Maturity Treasury (CMT).
Because this index is an annual average, it is more secure than the
1-Year CMT index. The MTA index usually fluctuates slightly more
than the 11th District Cost of Funds Index (COFI), although its
movements track each other closely. The MTA and COFI-indexed
adjustable rate mortgages (ARM) work much the same way. ARMs tied to
the MTA index may have the potential for negative amortization. |
| Absract of Title |
| A review of the public records relating to the
title to a property. An attorney or title insurance company reviews
the abstract of title to establish whether there are any title flaws
that must be cleared before a buyer can purchase clear, marketable,
and insurable title. |
| Acceleration Clause |
| A provision that allows the lender to demand the
immediate repayment of the mortgage loan balance due to
circumstances such as: failure to make payments, bankruptcy,
nonpayment of taxes on mortgaged property, or the breaking of loan
covenants. |
| Acceptance |
| A
contractual agreement that binds the offeree to the terms and
responsibilities outlined in the offer. |
| Accrued Interest |
| Interest earned for the period of time passed
since the interest was last paid. |
| Acquisition Loan |
| A loan made
for the sole purpose of purchasing land. Also called "land
acquisition loan." |
| Add-on Interest |
| The amount
of interest paid on the principal of a loan for the term of that
loan. |
| Additional Principal Payment |
| A payment
by a borrower made in excess of the required monthly payment in
order to reduce the remaining balance on the loan. |
| Adjustable Rate Mortgage (ARM) |
| A mortgage where the interest rate is adjusted periodically based on a pre-selected index. Also known as a "floating rate mortgage." |
| Adjusted Gross Income |
| The gross
income of a building if it is fully rented, not including an
allowance for estimated vacancies. |
| Adjustment Date |
| The date that the interest rate changes on an
adjustable rate mortgage (ARM). |
| Adjustment Interval |
| The period of time between changes in the
interest rate and/or monthly payments for an adjustable rate
mortgage (ARM), typically, one, three, or five years. |
| Adjustment Period |
| The period of time passing between adjustment
dates for an adjustable rate mortgage (ARM). |
| Administrator |
| A person
appointed by a probate court to manage and distribute the estate of
a person who has died without a will. |
| Affordability Analysis |
| An
examination of a buyer's ability to afford a house, by reviewing
income, liabilities, available funds, mortgage type, home price, and
closing costs. |
| Alt-A |
| This is a type of loan program that is almost
conforming, but slightly off on one or more criteria. |
| Amortization |
| The repayment of a mortgage loan, both the
principal and interest, through regular installments. |
| Amortization Term |
| The number of months required to repay the
mortgage loan. |
| Annual Mortgage Statement |
| A report sent to the borrower each year stating
the amount of taxes, insurance, and interest paid during the year,
as well as the remaining mortgage loan balance. |
| Annual Percentage Rate (APR) |
| A figure that calculates the full cost of a loan
including interest rate and all other fees associated with securing
a loan. |
| Apartment Conversion |
| The
conversion of a rental apartment building to individually owned
units. |
| Application Fee |
| The fee charged by the lender to the borrower
for applying for a loan. |
| Appraisal |
| A written analysis of the estimated value of a
property prepared by a qualified appraiser. |
| Appraised Value |
| An opinion of a property's fair market value,
based on an appraiser's knowledge, experience, and analysis of the
property. |
| Appraiser |
| A person familiar with local real estate values,
qualified by education, training, and experience to estimate the
value of real property and personal property. |
| Appreciation |
| An increase in the value of a property due to
changes in market conditions or other causes. The opposite of
depreciation. |
| Arms Length Transaction |
| All parties
involved in a real estate transaction with no personal interest in
the transaction or other involved persons. |
| "As-is" Agreement |
| Certifies that a buyer accepts whatever physical
condition a property is in at the time the contract is signed. May
be controlled by state and local regulations. |
| Assessed Value |
| The valuation placed upon property by a public
tax assessor for purposes of taxation. |
| Assessment |
| The process of placing a value on property for
the strict purpose of taxation. May also refer to a levy against
property for a special purpose, such as a sewer assessment. |
| Asset |
| Anything of monetary value that is owned by a
person. Assets include real property, personal property, and
enforceable claims against others (including bank accounts, stocks,
mutual funds, and so on). |
| Assignment |
| The transfer of a mortgage from one person to
another. |
| Assignment of Leases & Rents |
| The
instrument evidencing transfer by a lessee to the Lender and/or
assigns of the exact interest of said lessee including rent
receipts. |
| Assumption |
| The act of taking over an obligation or
liability of a mortgage note from the previous borrower. |
| Assumption Fee |
| The fee paid to a lender (usually by the
purchaser of real property) resulting from the assumption of an
existing mortgage. |
| Assumption of Mortgage |
| An obligation undertaken by the purchaser of
property to be legally liable for payment of an existing mortgage.
In an assumption, the purchaser is substituted for the original
mortgagor in the mortgage instrument and the original mortgagor is
to be released from further liability in the assumption, the
mortgagee's consent is usually required. |
| Attorney-in-Fact |
| One who
holds a power of attorney from another to execute documents on
behalf of the grantor of the power. The original mortgagor should
always obtain a written release from further liability if he desires
to be fully released under the assumption. Failure to obtain such a
release renders the original mortgagor liable if the person assuming
the mortgage fails to make the monthly payments. An 'Assumption of
Mortgage' is often confused with 'purchasing subject to a mortgage.'
When one purchases subject to a mortgage, the purchaser agrees to
make the monthly mortgage payments on an existing mortgage, but the
original mortgagor remains personally liable if the purchaser fails
to make the monthly payments. Since the original mortgagor remains
liable in the event of default, the mortgagee's consent is not
required to a sale subject to a mortgage. Both 'Assumption of
Mortgage' and 'Purchasing Subject to a Mortgage' are used to finance
the sale of property. They may also be used when a mortgagor is in
financial difficulty and desires to sell the property to avoid
foreclosure. |
| Balance Sheet |
| A financial
statement that shows assets, liabilities, and net worth as of a
specific date. |
| Balloon Mortgage |
| A mortgage that has fixed monthly payments that
will amortize it over a stated term but that requires a lump sum
payment to be due at the end of an earlier specified term. |
| Balloon Payment |
| The final lump sum payment that is made at the
maturity date of a balloon mortgage. |
| Bankrupt |
| A person, firm, or corporation that, through a
court proceeding, is relieved from the payment of all debts after
the surrender of all assets to a court-appointed trustee. |
| Bankruptcy |
| A proceeding in a federal court in which a
debtor who owes more than his or her assets can relieve the debts by
transferring his or her assets to a trustee. |
| Basis Point |
| A basis point is 1/100th of a percentage point.
For example, a fee calculated as 50 basis points of a loan amount of
$100,000 would be 0.50% or $500. |
| Before-Tax Income |
| Income before taxes are deducted. |
| Beneficiary |
| The person
designated to receive the income from a trust, estate, or a deed of
trust. |
| Binder or 'Offer to Purchase' |
| A preliminary agreement, secured
by the payment of earnest money, between a buyer and seller as an
offer to purchase real estate. A binder secures the right to
purchase real estate upon agreed terms for a limited period of time.
If the buyer changes his mind or is unable to purchase, the earnest
money is forfeited unless the binder expressly provides that it is
to be refunded. |
| Biweekly Payment Mortgage |
| A mortgage
that allows payments to reduce the debt every two weeks (instead of
the standard monthly payment schedule). The 26 (or 27) biweekly
payments are each equal to one-half of the monthly payment that
would be required if the loan were a standard 30-year fixed-rate
mortgage, and they are usually drafted from the borrower's bank
account. The result for the borrower is a substantial savings in
interest. |
| Blanket Mortgage |
| The
mortgage that is secured by a cooperative project, as opposed to the
share loans on individual units within the project. |
| Bond |
| An
interest-bearing certificate of debt with a maturity date. An
obligation of a government or business corporation. A real estate
bond is a written obligation usually secured by a mortgage or a Deed
of Trust. |
| Bond Financing |
| A type of
financing which is an agreement to repay the principal along with
the interest on a specified date. |
| Borrower |
| Any entity that is, or when loan is made will
become, the obligor on the loan. For commercial loans, the obligor
may be an Individual, Corporation, Partnership, Limited Liability Co
(LLC) or a Trust, depending on the loan amount. |
| Breach |
| A violation
of any legal obligation. |
| Bridge Loan |
| A form of
second trust that is collateralized by the borrower's present home
(which is usually for sale) in a manner that allows the proceeds to
be used for closing on a new house before the present home is sold.
Also known as 'swing loan.' |
| Broker (real estate) |
| A licensed real estate professional who,
typically, represents the seller of a property. A broker's duties
might include: determining market values, advertising properties for
sale, showing properties to prospective buyers, and advising clients
with regard to offers and related matters. |
| Builder Loans (also developer loans) |
| These are
loans for builders who are financing the construction of multiple
properties or spec/model homes before they are sold to an occupant.
|
| Building Code |
| Local
regulations that control design, construction, and materials used in
construction. Building codes are based on safety and health
standards. |
| Building Line or Setback |
| Guidelines
that limit the distance from the street or adjacent properties where
construction may not extend. The building line may be established by
building codes, zoning ordinances, or restrictive covenants in deeds
or leases. |
| Buy Down |
| Money advanced by an individual
(seller, builder, etc.) to reduce monthly payments for a home
mortgage either during the entire term or for an initial period of
years. Normally paid as "points" or "basis points" to reduce
the interest rate on a mortgage. When a Florida mortgage is
obtained through a Licensed Florida Mortgage Broker, the buy down is
paid to the Mortgage Broker as part of their fee, and the broker
then pays the lender to reduce the interest rate on the loan.
|
| Call Option |
| A provision
in the mortgage that gives the mortgagee the right to call the
mortgage due and payable at the end of a specified period for
whatever reason. |
| Cancellation Clause |
| The details
in a lease, or other contract, under which each party may terminate
the agreement. |
| Cap |
| A provision of an adjustable-rate mortgage (ARM)
that limits how much the interest rate may increase or decrease at a
given time or in a period of time. |
| Cap Rate |
| A rate of
return used to derive the capital value of an income stream. Value =
Annual Income / Cap Rate. |
| Capital Expenditure |
| The cost of
an improvement made to extend the useful life of a property or to
add to its value. |
| Capital Improvement |
| Any
structure or component erected as a permanent improvement to real
property that adds to its value and useful life. |
| Capital Improvements Escrow |
| A trust
account established to hold funds allocated for the completion of
rehabilitation, repairs or incomplete items of construction as
required by an escrow agreement. |
| Capitalization Process |
| A process
by which anticipated future income is converted into one lump sum
value. |
| Carryback Financing |
| A transaction where the seller of
the property takes a promissory note for some, or all, of the equity
in their house, upon its selling. The promissory note specifies the
terms under which the buyer of the property is expected to pay the
amount owed to the seller over time. Carrybacks can be secondary
financing, after a separate first mortgage obtained elsewhere, or
the carryback might be for the whole amount as well. Also referred
to as "seller financing." |
| Carrying Charges |
| The costs
incurred to maintain a property when it is non-productive or in
interim use. |
| Cash Flow |
| Money
available for debt service, less tenant improvement reserves and
leasing improvement reserves when applicable. |
| Cash-out Refinance |
| A refinance transaction in which the amount of
money received from the new loan exceeds the total of the money
needed to repay the existing first mortgage, closing costs, points,
and the amount required to satisfy any outstanding subordinate
liens. In-hand cash that is received from any given refinance or
mortgage. |
| Certificate of Deposit |
| A document
written by a bank or other financial institution that is evidence of
a deposit, with the issuer’s promise to return the deposit plus
earnings at a specified interest rate within a specified time
period. |
| Certificate of Eligibility |
| A document
issued by the federal government certifying a veteran's eligibility
for a Department of Veterans Affairs (VA) mortgage. |
| Certificate of Reasonable Value (CRV) |
| A document
issued by the Department of Veterans Affairs (VA) that establishes
the maximum value and loan amount for a VA mortgage. |
| Certificate of Sale |
| An official
document that entitles the buyer to receive a deed, pending court
confirmation. |
| Certificate of Title |
| A certificate issued by a title company or a
written opinion rendered by an attorney that the seller has good
marketable and insurable title to the property, which he is offering
for sale. A certificate of title offers no protection against any
hidden defects in the title, which an examination of the records
could not reveal. The issuer of a certificate of title is liable
only for damages due to negligence. The protection offered a
homeowner under a certificate of title is not as great as that
offered in a title insurance policy. |
| Certificate of Veteran Status |
| A document
that enables veterans who have served 90 days of continuous active
duty to obtain lower down payments on certian FHA insured loans. It
may be obtained by sending DD 214 to the local VA office with form
26-8261: Request for Certificate of Veteran Status. |
| Chain of Title |
| The history of all of the documents that
transfer title to a parcel of real property, starting with the
earliest existing document and ending with the most recent. |
| Change Frequency |
| The monthly frequency of payments and/or
interest rate changes in an adjustable rate mortgage (ARM). |
| Chapter 11 |
| A type of bankruptcy that allows the debtor to
maintain operating control of the business while restructuring and
reorganizing debts, and creating an acceptable debt-payment plan.
Also known as "debtor in possession." |
| Chapter 13 |
| A type of bankruptcy plan where the debtor
repays the creditor on a scheduled three-to-five year period. Also
called "wageearner plan." |
| Chapter 7 |
| A type of bankruptcy filing which allows the
debtor's assets to be distributed among the creditors. Also called a
"liquidation." |
| Closing |
| A meeting at which a sale of a property is
finalized by the buyer signing the mortgage documents and paying
closing costs. Also called 'settlement.' |
| Closing Costs |
| Costs associated with the purchase of a home
that must be paid at the sale closing. These could include mortgage
fees, title insurance, appraisal, inspection fees, and points. |
| Cloud on Title |
| Any
conditions revealed by a title search that adversely affect the
title to real estate. Usually clouds on title cannot be removed
except by a quit claim deed, release, or court action. |
| Co-Borrower |
| An additional borrower on a loan. A
co-borrower's obligation on a loan is the same as the borrower's.
|
| Co-Maker |
| A person who signs a promissory note along with
the borrower. A co-maker's signature guarantees that the loan will
be repaid, because the borrower and the co-maker are equally
responsible for the repayment. |
| Coinsurance |
| A sharing
of insurance risk between the insurer and the insured. Coinsurance
depends on the relationship between the amount of the policy and a
specified percentage of the actual value of the property insured at
the time of the loss. |
| Collateral |
| An asset
(such as a car or a home) that guarantees the repayment of a loan.
The borrower risks losing the asset if the loan is not repaid
according to the terms of the loan contract. |
| Collection |
| The efforts
used to bring a delinquent mortgage current and to file the
necessary notices to proceed with foreclosure when necessary. |
| Combination Loan |
| With this type of loan, you receive a first
mortgage for a percentage of the loan amount, and a second mortgage
at the same time for the remainder of the
balance. Combination loans are one way of financing a
home up to 100%, while still avoiding the payment PMI (mortgage
insurance), which usually is required on a Florida mortgage for
financing over 80%. |
| Combined Loan-to-Value (CLTV) |
| The relationship between the unpaid principal
balances of all the mortgages on a property (usually first and
second) and the property's appraised value (or sales price, if it is
lower). |
| Commercial Real Estate Loan |
| Financing
given on a commercial property. Financed amount is determined by the
particular property, based off previous reported income histories
and projected rental income and leaves a reserve of 25% (see Debt
Service Coverage). |
| Commission |
| The fee charged by a broker or agent for
negotiating a real estate or loan transaction. A commission is
generally a percentage of the sales price of the property or loan.
|
| Commitment |
| A formal offer by a lender stating the terms
under which it agrees to lend money to a home buyer. Also known as a
'loan commitment.' |
| Common Area Assessments |
| Levies against individual unit owners in a
condominium, town home or planned unit development (PUD)
project for additional capital to defray homeowners' association
costs and expenses and to repair, replace, maintain, improve, or
operate the common areas of the project. |
| Common Areas |
| Those portions of a building, land, and
amenities owned (or managed) by a planned unit development (PUD), a
town home or condominium project's homeowners' association, or a
cooperative project's cooperative corporation, that are used by all
of the unit owners, who share in the common expenses of their
operation and maintenance. Common areas can include swimming pools,
tennis courts, and other recreational facilities, as well as common
corridors of buildings, parking areas, means of ingress and egress,
parks, wildlife areas, ponds,undeveloped areas, etc. |
| Community Home Improvement Mortgage Loan |
| An
alternative financing option that allows low- and moderate-income
home buyers to obtain 95 percent financing for the purchase and
improvement of a home in need of repairs. The repair work can
account for as much as 30 percent of the appraised value. |
| Community Property |
| In some
states, a form of ownership under which property acquired during a
marriage is presumed to be owned jointly unless acquired as separate
property of either spouse. In Florida, a married couples
primary residence is normally considered community property, even it
was aquired before marriage and the title deed is recorded in only
one name. |
| Comparables |
| An abbreviation for 'comparable properties.'
used for comparative purposes in the appraisal process. Comparables
are properties like the property under consideration; they have
reasonably the same size, location , and amenities, and have
recently been sold. Comparables help the appraiser determine the
approximate fair market value of the subject property. |
| Compound Interest |
| Interest
paid on the original principal balance and on the accrued and unpaid
interest. |
| Condemnation |
| The taking
of private property for public use by a government unit, against the
will of the owner, but with payment of just compensation under the
government's power of eminent domain. Condemnation may also be a
determination by a governmental agency that a particular building is
unsafe or unfit for use. |
| Condominium |
| A real
estate project in which each unit owner has title to a unit in a
building, an undivided interest in the common areas of the project,
and sometimes the exclusive use of certain limited common areas. |
| Condominium Conversion |
| Changing
the ownership of an existing building (usually a rental project) to
the condominium form of ownership. |
| Condominium Hotel |
| A
condominium project that has rental or registration desks,
short-term occupancy, food and telephone services, and daily
cleaning services, and that is operated as a commercial hotel even
though the units are individually owned. |
| Conforming Loan |
| The current conforming loan limit
is $359,650 and below. Conforming loan limits change annually.
A Licensed Florida mortgage Broker usually has access to lenders who
may offer conforming loan rates and terms for Florida mortgages that
may be above this amount. Florida Mortgage Brokers may also
have access to "combination loan" plans that eliminate this
requirement. |
| Construction Loan |
| A
short-term loan for funding the cost of construction. The lender
advances funds to the builder as the work progresses. |
| Construction to Permanent |
| A type of
loan to pay off an existing construction loan, lot loan, and any
additional construction costs. Must be completed and inspected
before loan closes and funds to pay off, but it has to be approved
prior to completion |
| Consumer Credit Counseling |
| This is a
non-profit organization that helps citizens lower their debt
payments, and consolidate payments under this orgranization. They
are also know as CCCS (consumer credit counseling services). |
| Consumer Reporting Agency (or Credit Bureau) |
| An organization that prepares reports that are
used by lenders to determine a potential borrower's credit history.
The agency obtains data for these reports from a credit repository
as well as from other sources. The three main agencies
are Experian, TransUnion and Equifax. See our "Free
Credit Report" link for more information. |
| Contingency |
| A condition
that must be met before a contract is legally binding. For example,
home purchasers often include a contingency that specifies that the
contract is not binding until the purchaser obtains a satisfactory
home inspection report from a qualified home inspector. |
| Contract |
| An agreement between two or more parties,
especially one that is written and enforceable by law. In
purchasing a home in Florida, this normally refers to the sales
contract. |
| Conventional Mortgage |
| Any mortgage that is insured or guaranteed by
the federal government. |
| Conversion Clause |
| A condition in an adjustable rate mortgage (ARM)
that allows the loan to be converted to a fixed-rate mortgage at
some point during the term. |
| Convertibility Clause |
| A provision in some adjustable rate mortgages
(ARMs) that allows the borrower to change the ARM to a fixed-rate
mortgage at specified time frames after loan closing. |
| Convertible Arm |
| An adjustable rate mortgage that can be
converted to a fixed-rate mortgage under specified conditions. |
| Cooperative (co-op) |
| A type of
multiple ownership in which the residents of a multiunit housing
complex own shares in the cooperative corporation that owns the
property, giving each resident the right to occupy a specific
apartment or unit. |
| Corporate Relocation Arrangements |
| When an
employer pays all or part of the costs to relocate an employee to
another location of the company. |
| Correspondent Lender |
| A lender
who funds loans through Licensed Mortgage Brokers (or sometimes
bank), and sells them to a wholesale lender through a prior
commitment. The lender who originates the loan then receives a
service fee from the correspondent lender. |
| Cosigner |
| An individual, other than the borrower, who
signs a mortgage loan obligation and, thereby, assumes equal
liability. |
| Cost of Funds Index (COFI) |
| An index
that is used to determine interest rate changes for certain
adjustable-rate mortgage (ARM) plans. It represents the
weighted-average cost of savings, borrowings, and advances of the
11th District members of the Federal Home Loan Bank of San
Francisco. |
| Coupon Rate |
| The actual
interest rate on a debt, bond, note, or other fixed income security.
The coupon rate on a mortgage is the contract rate stated in the
mortgage note. |
| Covenant |
| A clause in
a mortgage that obligates or restricts the borrower and that, if
violated, can result in foreclosure. |
| Credit |
| A measurement of a person's ability to pay bills
on time. Several companies track individuals' credit histories by
detailing late or missed payments on loans, credit cards, and other
debts, and this information can be obtained for a fee in a credit
report. This can also mean extending credit, which is an
agreement in which a borrower receives something of value in
exchange for a promise to repay the lender at a later date. |
| Credit Enhancement |
| A process
to reduce credit risk, and provide the lender with reassurance that
they will be compensated if the borrower defaults, by requiring
collateral, insurance, or other agreements. It can also mean
correcting errors and issues on someone's credit report, which leads
to a cleaner credit record ans higher scores in a short period of
time. |
| Credit History |
| A record of an individual's open and fully
repaid debts. A credit history helps a lender to determine whether a
potential borrower has a history of repaying debts in a timely
manner. |
| Credit Life Insurance |
| A type of
insurance often bought by mortgagors because it will pay off the
mortgage debt if the mortgagor dies while the policy is in force.
|
| Credit Report |
| A report of an individual's credit history
prepared by a credit bureau and used by lenders to determine a
potential borrower's creditworthiness. Independent sources compile
the report, which lists the borrower's debts, liabilities, and
assets. |
| Credit Buruea (or Credit Repository) |
| An organization that gathers, records, updates,
and stores financial and public records information about the
payment records of individuals who are being considered for credit.
|
| Creditor |
| An entity, such as a mortgage company or bank,
that loans money for repayment and interest. |
| Cure |
| A loan that
is removed from a delinquency status with no loss to the insurer.
|
| Current Assets |
| Assets that
could be converted into cash within a year, such as cash
equivalents, accounts receivable, inventory, marketable securities,
prepaid expenses, and other such assets. |
| Debt Consolidation Refinance |
| A refinance transaction that uses the equity in
your house or monies from your mortgage to consolidate your debt
into one low rate monthly payment. |
| Debt Ratio |
| The total of the proposed monthly payments
(usually including all payments such as mortgages, loans, credit
cards, car payments, etc.) divided by the total monthly
income. Lenders often consider debt ratios when looking at
approval for a loan. |
| Debt Service Coverage Ratio |
| The ratio
calculated by dividing the property's cash flow available for debt
service by the annual principal and interest requirements. ('DSC')
|
| Declaration of Trust |
| A written
document from one having legal title to a property, that the
property is held in trust for the benefit of another. |
| Deed |
| A document that transfers real estate from one
party to another. Officially recorded in government records. |
| Deed of Trust |
| Like a
mortgage, a security instrument whereby real property is given as
security for a debt. However, in a deed of trust there are three
parties to the instrument |
| Deed-in-Lieu |
| A deed
given by a mortgagor to the mortgagee to satisfy a debt and avoid
foreclosure. Also called a 'voluntary conveyance.' |
| Default |
| Failure to
make mortgage payments on a timely basis or to comply with other
conditions of a mortgage. |
| Deficiency |
| The
difference between the balance on a loan and profits from the sale
of the loan collateral. |
| Deficiency Judgment |
| A court
order to pay the balance owed on a loan if the proceeds from the
sale of the security are insufficient to pay off the loan.
Deficiency judgments are not allowed in all states. |
| Delegated Underwriting and Servicing (DUS) |
| Fannie Mae
allows certain lenders to process and approve FNMA’s multifamily
loans wherein the lender takes a percentage of the risk. |
| Delinquency |
| A loan in
which a payment is overdue but not yet in default. |
| Delivery |
| The actual
placement of the property to the grantee, usually by delivery of a
deed to the buyer or by recording of the deed. |
| Demand Note |
| There is no
set day for repayment of a this note, but it is due on the “demand”
of the lender. |
| Density |
| The number
of persons or buildings occupying a certain amount of land. An acre
is usually used. |
| Department of Veterans Affairs (VA) |
| An agency
of the federal government that guarantees residential mortgages made
to eligible veterans of the military services. The guarantee
protects the lender against loss and thus encourages lenders to make
mortgages to veterans. |
| Deposit (see Earnest Money) |
| A sum of money given to bind the sale of real
estate, or a sum of money given to ensure payment, or an advance of
funds in the processing of a loan. |
| Depreciation |
| A decline in the value of property; the opposite
of appreciation. |
| Direct Reduction Mortgage |
| An
amortized mortgage in which principal and interest payments are paid
monthly with interest being computed on the remaining balance. |
| Discount Points |
| Charges levied by the mortgage lender to obtain
a better interest rate, usually payable at closing. One point
represents 1% of the mortgage loan amount. See "Buydown" for
more information. |
| Discount Rate |
| The Federal
Reserve System’s rate of interest charged to banks that buy money
from them. An increase in the rate discourages banks from borrowing.
A compound interest rate used to convert expected future income into
a present value income. |
| Disposition of Real Estate Statement |
| A
requirement for the borrower that they will occupy the property
being purchased even though they may own other property. The
borrower must state that the other property will be sold or
rented. |
| Documentary Stamps |
| A state tax, in the forms of stamps, required on
deeds and mortgages when real estate title passes from one owner to
another. The amount of stamps required varies with each State. |
| Documentary Transfer Tax |
| A tax charged by the city or county of a
property based on the sales price upon the transfer of that
property. |
| Double Declining Balance Method of Depreciation |
| A use of
the declining balance method, but with double the depreciation
allowable by straight line. This is an accelerated method. |
| Double Escrow |
| Two
concurrent escrows on the same property, having the same buyer and
seller of the property. Escrow 1 buys from escrow 2 and then sells
the same property to another. This process is illegal in many states
unless a full disclosure is made. |
| Doublewide |
| A type of
manufactured housing that comes as two units joined together at the
lot or park it is to be placed on. |
| Dower |
| The rights
of a widow or widower of the property upon the spouse’s death. |
| Down Payment |
| The part of the purchase price, which the buyer
pays in cash and does not finance with a mortgage. |
| Drive by Appraisal |
| A type of appraisal where valuations are based
only on public records and exterior inspections. |
| Dual Agency |
| The
representation of both the buyer and seller by the same agency at
the same time. Full disclosures are required. |
| Due Diligence |
| An
investigation or audit by the investor of a potential investment.
Due diligence examines all material facts in regards to a sale. |
| Due-on-sale Provision |
| A provision
in a mortgage that allows the lender to demand repayment in full if
the borrower sells the property that serves as security for the
mortgage. |
| Early Occupancy |
| When the
buyer is allowed to take possession of the property before the sale
is completed. |
| Earnest Money |
| The deposit money given to the seller or his
agent by the potential buyer upon the signing of the agreement of
sale to show that he is serious about buying the house. If the sale
goes through, the earnest money is applied against the down payment.
If the sale does not go through, the earnest money will be forfeited
or lost unless the binder or offer to purchase expressly provides
that it is refundable. |
| Easement |
| A right,
such as a right of way, afforded a person or entity to make limited
use of another's real property. |
| Easement of Necessity |
| An easement
granted by a court that states an easement is absolutely necessary
for the use and enjoyment of the land. Commonly given to landlocked
parcels. |
| Effective Age |
| An
appraiser's estimate of the physical condition of a building. The
actual age of a building may be shorter or longer than its effective
age. |
| Effective Gross Income |
| Normal
annual income including overtime that is regular or guaranteed. The
income may be from more than one source. Salary is generally the
principal source, but other income may qualify if it is significant
and stable. |
| Egress |
| A term
concerning a right to come and go across the land of another. The
term is usually “ingress and egress.” |
| Eighty-Ten-Ten Loan (80/10/10) |
| A loan
through one or more lenders that consists of more than one
mortgage. Usually consisits of a first mortgage (80%), a
second mortgage (10%), and a HELOC or Home Equity Line of
Credit (10%). One of many possible "combination
loans". |
| Eleemosynary Corporation |
| Created for
charitable purposes that allow tax advantages although they operate
the same as a profit-making corporation. They are called nonprofit
corporations. |
| Eminent Domain |
| The right
of the government to appropriate private property for public use,
usually with compensation to the owner. |
| Employer-Assisted Housing |
| A special
Fannie Mae housing initiative that offers several different ways for
employers to work with local lenders to develop plans to assist
their employees in purchasing homes. |
| Encroachment |
| Any
improvement such as a building, wall, fence, or other fixture which
overlaps onto an adjoining property. |
| Encumbrance |
| A legal
right or interest in land that affects a good or clear title, and
diminishes the land's value. |
| Endorsement |
| Any change or addition to a title insurance
policy that affects coverage of the policy as per specific
requirements of the insured. When securing a Florida mortgage,
these endorsements and their fees are often listed separately on the
closing documents. |
| Endorser |
| A person
who signs ownership interest over to another party. |
| Engineering Report |
| A report
created by an architect or engineer describing the current physical
condition of the property and its major building systems. Also known
as a "structural report." |
| Entitlements |
| A right to
certain benefits specified by contract or law. |
| Environmental Site Assessment |
| A detailed
study of the environmental condition of the property and
surroundings conducted in accordance with ASTM standard E 1527 or
E1528 (Phase I or Transaction Screen Process) Also known as 'ESA'
|
| Environmental Transaction Screen Report |
| The report
prepared in compliance with the American Society for Testing
Materials (ASTM) standards to identify recognized environmental
conditions of a property (i.e., the presence, or likely presence, of
any hazardous substances on the property). |
| Equal Credit Opportunity Act (ECOA) |
| A federal law that requires lenders and other
creditors to make credit equally available without discrimination
based on race, color, religion, national origin, age, sex, marital
status, or receipt of income from public assistance programs. |
| Equitable Conversion |
| A legal
term regarding a land contract which treats the buyer’s interest as
a real property interest, even though the seller holds legal title.
|
| Equitable Mortgage |
| A lien
against real property, which is enforceable in a court of equity but
does not legally constitute a mortgage. Also, a deed given as
security for a debt will be considered a mortgage rather than a
transfer of title. Also known as a constructive mortgage. |
| Equity |
| A homeowner's financial interest in a property.
Equity is the difference between the fair market value of the
property and the amount still owed on its mortgage. Basically,
this is the actual cash value of property after all claims against
the property have been paid. |
| Equity Capital |
| Money
invested by owners who receive a portion of the profits. |
| Equity Line of Credit (Home Equity Line of Credit or HELOC) |
| A deed of trust is recorded against the
borrower’s property for a predetermined maximum loan amount and the
borrower can borrow up to the amount of the loan amount as needed.
Usually interest only for a period of 5 to 10 years and then the
loan becomes a fixed mortgage and no more equity can be borrowed.
Payments are then principal and interest until payoff. |
| Equity Loan |
| A loan based on the borrower's equity in his or
her home. Also, an account held by the lender into which a homeowner
pays money for taxes and insurance. |
| Escape Clause |
| A provision
in a contract that allows for the cancellation of all or part of the
contract. |
| Escrow |
| An item of value, money, or documents deposited
with a third party to be delivered upon the fulfillment of a
condition. For example, the deposit by a borrower with the lender of
funds to pay taxes and insurance premiums when they become due, or
the deposit of funds or documents with an attorney or escrow agent
to be disbursed upon the closing of a sale of real estate. |
| Escrow Account |
| The account in which a mortgage servicer holds
the borrower’s escrow payments prior to paying property expenses.
|
| Escrow Analysis |
| The periodic examination of escrow accounts to
determine if current monthly deposits will provide sufficient funds
to pay taxes, insurance, and other bills when due. |
| Escrow Collections |
| Funds collected by the servicer and set aside in
an escrow account to pay the borrower’s property taxes, mortgage
insurance, and hazard insurance. |
| Escrow Disbursements |
| The use of escrow funds to pay real estate
taxes, hazard insurance, mortgage insurance, and other property
expenses as they become due. |
| Escrow Payment |
| The portion of a mortgagor's monthly payment
that is held by the servicer to pay for taxes, hazard insurance,
mortgage insurance, lease payments, and other items as they become
due. Known as 'impounds' or 'reserves' in some states. |
| Estate |
| The
ownership interest of an individual in real property. The sum total
of all the real property and personal property owned by an
individual at time of death. |
| Eviction |
| The lawful
expulsion of an occupant from real property. |
| Examination of Title |
| The report on the title of a property from the
public records or an abstract of the title. |
| Exception |
| In a title
insurance policy, a provision that excludes liability for a
specified title defect or outstanding encumbrance. |
| Exclusive Listing |
| A contract
that gives a licensed real estate agent the exclusive right to sell
a property for a set period of time. |
| Executor |
| An
individual appointed in a will to administer an estate. |
| Exit Fees |
| On some
transactions, a lender will charge fees upon the repayment of the
loan. They can be a penalty for early loan repayment or may be
additional compensation for the lender over and above the interest
cost. |
| Expert Testimony |
| The
testimony that is given by a person with special training or
knowledge in a particular subject and is therefore considered an
“expert.” |
| Exposure |
| When a
property is for sale or lease, the amount of notice or exposure the
property gets through advertising, multiple listing groups, or other
means. |
| Fair Credit Reporting Act |
| A consumer
protection law that regulates the disclosure of consumer credit
reports by consumer/credit reporting agencies and establishes
procedures for correcting mistakes on one's credit record. |
| Fair Market Value (Appraised Value) |
| The value of a property as determined by a
licensed, professional appraiser, primarily based on the sales
prices of comparable properties recently sold nearby. Primary
factors include heated square footage, area where the property is
located, and condition of the property. This is normally an
attempt to calculate the mid point where the highest price that a
buyer, willing but not compelled to buy, would pay, and the lowest a
seller, willing but not compelled to sell, would accept, become the
same amount. |
| Fannie Mae's Community Home Buyer's Program |
| An
income-based community lending model, under which mortgage insurers
and Fannie Mae offer flexible underwriting guidelines to increase a
low- or moderate-income family's buying power and to decrease the
total amount of cash needed to purchase a home. Borrowers who
participate in this model are required to attend pre-purchase
home-buyer education sessions. |
| Farmers Home Administration (FmHA) |
| Financing
provided to farmers and other qualified borrowers who are unable to
acquire loans elsewhere. |
| FDIC |
| (Federal
Deposit Insurance Corporation). Provides insurance of accounts for
institutions whose deposits were formerly covered by the Federal
Savings & Loan Insurance Corporation. (FSLIC). |
| Federal Home Loan Mortgage Corporation, Freddie Mac (FHLMC) |
| A private corporation authorized by Congress,
which became an independent, stockholder-owned government
corporation with the passage of FIRREA. FHLMC promotes the flow of
funds into the housing markets by purchasing conventional mortgages
in the secondary market and selling securities backed by those
mortgages in the capital market. |
| Federal Housing Administration (FHA) |
| A division of the Department of Housing and
Urban Development. The FHA's main activity is the insuring of
residential mortgage loans made by private lenders. It sets
standards for construction and underwriting. FHA neither lends
money, nor plans, nor constructs housing. |
| Federal Housing Finance Board (FHFB) |
| It oversees
the credit functions of the twelve regional Federal Home Loan Banks.
|
| Federal National Mortgage Association (FNMA) |
| A
government-sponsored corporation, owned solely by private investors,
created to provide support to the secondary market for FHA and VA
mortgages and conventional mortgages. |
| Fee Simple |
| Private ownership of real estate in which the
owner has the right to control, use, and transfer the property at
will. |
| Fee Simple Estate |
| An
unconditional, unlimited estate of inheritance that represents the
greatest estate and most extensive interest in land that can be
enjoyed. It is of perpetual duration. When the real estate is in a
condominium project, the unit owner is the exclusive owner only of
the air space within his or her portion of the building (the unit)
and is an owner in common with respect to the land and other common
portions of the property. |
| FHA Loan |
| Government loans are loans that are guaranteed
or purchased by government organizations. Two of the most popular
Government Loans are the Federal Housing Administration (FHA) and
the Department of Veterans Affairs (VA). |
| FHLBB |
| (Federal
Home Loan Bank Board) |
| FICO |
| FICO scores were developed by Fair Isaac &
Company, Inc. for each of the three major credit reporting agencies:
Equifax, Experian, and TransUnion. These scores only consider the
information in an individual's credit file, not income or savings.
|
| Finance Charge |
| The total dollar amount your loan will cost you.
It includes all interest payments for the life of the loan, any
interest paid at closing, your origination fee, and any other
charges paid to the lender and/or broker. Appraisal, credit report,
and title search fees are not included in the finance charge
calculation. |
| Financial Statement |
| A financial
report that includes a balance sheet, income statement, and
statement of cash flows. |
| Finder's Fee |
| A fee or commission paid to a Licensed Mortgage
Broker for finding a mortgage loan for a prospective borrower.
usually expressed as pioints. |
| FIRREA |
| (Financial
Institutions Reform, Recovery and Enforcement Act of 1989). An act
signed into law in August 1989, by President Bush that restructured
the thrift regulatory an insurance system. |
| First Mortgage |
| The mortgage that is the primary
lien against a property and has first claim in the event of
default. |
| Fixed Assets |
| Assets that
will not be turned into cash within a year, such as manufacturing
equipment, real estate, or furniture. Also called "long-term
assets." |
| Fixed Installment |
| The monthly
payment due on a mortgage loan. |
| Fixed Second Mortgage |
| A second mortgage on a property with a fixed
rate of interest. Has second claim in event of default. |
| Fixed-Rate Mortgage (FRM) |
| A mortgage in which the interest rate does not
change during the entire term of the loan. |
| Fixture |
| Personal
property that becomes real property when attached in a permanent
manner to real estate. |
| Floating Rate Mortgage |
| See
Adjustable Rate Mortgage (ARM) |
| Flood Insurance |
| Insurance
that compensates for physical property damage resulting from
flooding. It is required for properties located in federally
designated flood areas. |
| Foreclosure |
| The legal
process by which a borrower in default under a mortgage is deprived
of his or her interest in the mortgaged property. This usually
involves a forced sale of the property at public auction with the
proceeds of the sale being applied to the mortgage debt. |
| Foreclosure Bailout |
| These are
loans designed to take the equity of your home or to refinance your
home in order to pay off existing loan payment lates that have gone
into default. |
| Forfeiture |
| The loss of
money, property, rights, or privileges due to a breach of legal
obligation. |
| Foundation |
| The
concrete slab beneath the property that holds the property in
place. |
| Front Ratio |
| The
proportion of a purchaser's income that lenders will allow for
principal, interest, taxes, and insurance on a property. Used in the
evaluation of a loan application. |
| Full Disclosure |
| A requirement that sellers fully disclose all
known defects in a property when selling it. This is a
requirement of law in Florida. |
| Full Recasting |
| Setting the
principal and interest payments to the level that will fully
amortize the loan's outstanding balance over the remaining term
using the fully indexed accrual rate at the recasting point. |
| Fully Amortized ARM |
| An adjustable-rate mortgage (ARM) with a monthly
payment that is sufficient to amortize the remaining balance, at the
interest accrual rate, over the amortization term. |
| Fully Indexed Accrual Rate |
| The
interest (accrual) rate resulting from the index at closing (or at
another point in the loan) plus the lender's full spread, rounded as
prescribed in the loan documents (often to the nearest 1/8th of 1%).
|
| Future Acquired Property |
| A loan
agreement may state that the loan is a lien on all property
presently owned or which the borrower may acquire in the future. |
| Future Interest |
| A current
interest in the land, but only a future right to possession and
enjoyment of the land, such as a remainder interest, reversionary
interest, etc. |
| Garnishment |
| A legal
proceeding under which a person’s money in control of another, such
as salary, is taken for payment of a debt. The amount taken is set
by stature, and in most states, a judgment is necessary before
garnishment. |
| General Membership |
| A
partnership made up of general partners, without special (limited)
partners. |
| General Warranty Deed |
| A deed which conveys not only all the grantor's
interests in and title to the property to the grantee, but also
warrants that if the title is defective or has a 'cloud' on it (such
as mortgage claims, tax liens, title claims, judgments, or
mechanic's liens against it) the grantee may hold the grantor
liable. |
| Georgian Architecture |
| A colonial
style of architecture dating back to the eighteenth century.
Characterized by first floor windows extending to the ground, its
exterior placements (windows, doors, etc.) are simple and well
balanced, yet formal in appearance. |
| Gerrymander |
| To divide
an area into districts, against the obvious natural divisions, in
order to accomplish an unlawful purpose. |
| Gift Letter |
| A Gift
Letter is a gift of funds given to the borrower in order for them to
purchase a home. The letter must indicate that no repayment of the
gift is expected. The amount of the gift and the date the funds were
transferred should be indicated in the letter. The donor, with the
proper identification, can be from relatives, friends, an employer,
church, municipality, or non-profit organization. The letter must
include the donor's name, address, telephone number, and relation to
the borrower. |
| Gifts |
| Money
received from a relative or close friend to assist in the purchase
of a home. |
| Good Faith Deposit |
| A deposit made by a purchaser of property to
show they are serious about the purchase. |
| Good Faith Estimate (GFE) |
| A document that tells borrowers an estimate of
the settlement charges the mortgagor incurs at closing. Under the
requirements of the Real Estate Settlement Procedures Act (RESPA), a
borrower must receive a GFE within three business days after the
loan application is received. |
| Government Loans FHA / VA |
| Government loans are loans that are guaranteed
or purchased by government organizations. Two of the most popular
Government Loans are the Federal Housing Administration (FHA) and
the Department of Veterans Affairs (VA). |
| Government National Mortgage Association (GNMA) |
| A
goverment-owned agency, also known as "Ginnie Mae," that provides
sources of funds for residential mortgages. Guaranteed or insured by
the Federal Housing Administration (FHA) or the Veterans
Administration (VA). |
| Grace Period |
| A specified time (typically 15 days) after a
mortgage payment is due, in which the lender will not charge a late
penalty. |
| Graduated Payment Mortgage |
| (GPM) A
mortgage where the payments are scheduled to increase, usually
annually, for a set number of years, and then level off. GPM can be
used with either a fixed or adjustable interest rate, and usually
has a 30-year term. |
| Grantee |
| That party in the deed who is the buyer or
recipient. |
| Grantor |
| The party in the deed who is the seller or
giver. |
| Gross Income |
| Total personal income, before the deduction of
taxes and expenses. |
| Growing Equity Mortgage |
| (GEM) A
fixed rate, graduated payment mortgage with small initial payments
that increase each year so that the loan pays off in a shortened
term, usually 15 years. |
| Guarantee Mortgage |
| A mortgage
that is guaranteed by a third party if the original party fails to
pay. |
| Guaranty |
| To accept
responsibility for an obligation if the original party fails to pay
or perform according to a contract. |
| Hard Equity |
| High
interest rate financing. |
| Hard Money Lender |
| A Lender
that customarily funds loans by private money sources and investors
but not banks. Interest rates and points can be higher. |
| Hard Money Lenders |
| Lenders
that customarily fund loans by private money sources and investors
but not banks. Interest rates and points can be higher. |
| Hard Money Loan |
| An equity
based loan with high interest rates and with flexible guidelines.
|
| Hazard Insurance |
| Insurance to protect the homeowner and the
lender against physical damage to a property from fire, wind,
vandalism, or other hazards. |
| Hedging |
| The sale or
purchase of future mortgage contracts by a mortgage banker or lender
for the purpose of protecting cash transactions made at a future
date. |
| Heir |
| The person
who by law receives the estate of a deceased person. |
| Hereditaments |
| Anything
that may be inherited or anything considered real property. |
| Hidden Defect |
| An
encumbrance on a title that is not apparent in the public
records. |
| Holdback |
| A portion
of a loan commitment withheld until a specified event occurs, such
as a rental or construction. |
| Home Equity Line of Credit (HELOC) |
| A credit line that is secured by a second deed
of trust on a house. Equity lines of credit are revolving accounts
that work like a credit card, which can be paid down or charged up
for a pre-determined term, usually 5 years, with interest payments
only. After this term, the loan becomes a fixed second and no more
equity can be taken. |
| Homeowner's Insurance |
| An insurance policy that combines liability
coverage and hazard insurance. |
| Homeowner's Warranty |
| A type of insurance that covers repairs to
specified parts of a house for a specific period of time. |
| Homestead (Homestead Exemption) |
| The home and property of the head of the
household. Some states, including Florida, allow statutory
exemptions that protect homestead property against the rights of
non-mortgage creditors, and allow certain property tax reductions
and limits on homestead exempt property. |
| Housing Ratio |
| The ratio
of the monthly housing payment in total (PITI - Principal, Interest,
Taxes, and Insurance) divided by the gross monthly income. This
ratio is sometimes referred to as the top ratio or front end ratio.
|
| Housing Starts |
| The number
of homes that construction has began on. These figures are used to
determine the availability of housing, need for mortgage loans, and
labor and materials, etc. |
| HUD |
| (Department
of Housing and Urban Development). A cabinet department responsible
for the implementation and administration of government housing and
urban development programs. |
| Hybrid Investment |
| An
investment that is a combination of both debt and equity. |
| Hypothecate |
| Having
pledged or mortgaged a security without delivery to the lender. |
| Impound (Escrow Payments) |
| The portion of a borrower's monthly payment that
is held by the lender in order to pay for taxes, hazard insurance,
mortgage insurance, lease payments, and other additional items. |
| Improvements |
| Any
permanent improvements to a structure such as buildings, streets,
utilities, etc. |
| Inchoate Instrument |
| An
unrecorded instrument, such as a deed, which is valid only between
the parties involved but not as it would be after recording. |
| Income Approach |
| A method of
appraising a property that is based on the property’s anticipated
future income. The net income is established and then divided by the
estimated capitalization rate to arrive at a fair market value. |
| Income Property |
| Real estate
developed or improved to produce income. |
| Index |
| (Also called 'Rate Index'). A regularly
published rate, independent of the lending institution, that
measures the prevailing cost of funds, and is used periodically with
the margin to set AML accrual rates. This can also be one of
many indices used to calculate the rate on ARMs. |
| Inflation |
| An increase
in the amount of money or credit available in relation to the amount
of goods or services available, which causes an increase in the
general price level of goods and services. Over time, inflation
reduces the purchasing power of a dollar, making it worthless. |
| Ingress and Egress |
| Easements
that give the right to go in and out of a section of property, but
not the right to park on it. |
| Inheritance Tax |
| A tax on
the transfer of property from a deceased person, based on the right
to acquire the property rather than the property itself. |
| Initial Borrower Interest Rate |
| The rate on
which the borrower's first payment is calculated. |
| Initial Borrower Payment Rate |
| The annual
interest rate used to calculate the borrower's initial cash payment.
|
| Initial Interest Rate |
| The
original interest rate of the mortgage at the time of closing. |
| Insolvency |
| When a
debtor is unable to meet his/her debt obligations. |
| Installment |
| A
borrower's periodic payment to a mortgage lender. |
| Insurable Title |
| A property
title that a title insurance company agrees to insure against
defects and disputes. |
| Insured Mortgage |
| A mortgage that is protected by the Federal
Housing Administration (FHA) or by private mortgage insurance (PMI).
If the borrower defaults on the loan, the insurer must pay the
lender the lesser of the loss incurred, or the insured amount. |
| Interest Accrual Rate |
| The percentage rate at which interest accrues on
the mortgage. In most cases, it is also the rate used to calculate
the monthly payments, although it is not used for an adjustable-rate
mortgage (ARM) with payment change limitations. |
| Interest Only Loans |
| These are short term loans whose only payment is
on the interest, not on the principle loan amount. |
| Interest Rate |
| The percentage of an amount of money, which is
paid for its use for a specified time. |
| Interest Rate Cap |
| A provision of an ARM limiting how much interest
rates may increase per adjustment period. |
| Interest Rate Ceiling |
| For an adjustable rate mortgage (ARM), the
maximum interest rate, as specified in the mortgage note. |
| Interest Rate Floor |
| For an adjustable rate mortgage (ARM), the
minimum interest rate, as specified in the mortgage note. |
| Interim Financing |
| Short-term financing issued during the
completion of a building or project, in anticipation of longer-term
financing. |
| Interpleader |
| A court
action which may be filed in an existing case to be the initial
action. A neutral third party holding funds that are in dispute
would file an interpleader. |
| Investment Banker |
| An
individual or institution that operates as an underwriter or agent
for corporations issuing securities, but that does not accept
deposits or make loans. In addition, most investment bankers
maintain broker/dealer operations, maintain markets for previously
issued securities, and offer advisory services to investors. |
| Investment Property |
| A property
that is not occupied by the owner. Also known as non-owner occupied
(NOO). |
| Investor |
| An
individual or organization that invests in mortgages. |
| Involuntary Conversion |
| When a
property is taken by eminent domain, the owner can convert the money
from the condemned property into real property without paying taxes
on the gain. This is for a period up to 3 years. |
| Jetty |
| A pier or
other structure built out into a body of water. Pier and post is a
fairly common foundation for properties partially on water. |
| Joint and Several Note |
| Two or more
parties who are responsible for the entire amount of the debt. |
| Joint Appraisal |
| An
appraisal done by more than one appraiser, but with one appraiser
stating the conclusion of all. |
| Joint Tenancy |
| A form of
co-ownership that gives each tenant equal interest and equal rights
in the property, including the right of survivorship. |
| Judgment |
| A Court act
creating or affirming an obligation, such as a debt. The court may
place a lien against the debtor's real property as collateral for
the judgment's creditor. |
| Judgment Lien |
| An unpaid,
court-ordered, monetary judgment against a current or previous
property owner. |
| Judgment Proof |
| Someone who
a judgment creditor cannot collect due to no assets. |
| Judicial Foreclosure |
| A type of
foreclosure proceeding used in some states that is handled as a
civil lawsuit and conducted entirely under the auspices of a court.
|
| Jumbo Mortgage |
| The current loan limit for a conforming loan is
$359,650. Loans for amounts above $359,650 are considered
non-conforming or jumbo mortgages. This limit can change on an
annual basis. See "Conforming Mortgage". |
| Just Compensation |
| When an
owner receives the fair market value of a property that is taken by
the government. |
| Key Tenants |
| Any tenant
contributing revenues of 30% or more of the total revenue for a
particular property. |
| Kicker |
| A payment
to a lender in addition to the ordinary fixed-interest payments. It
may include an equity position in a property or a percentage
participation in the income stream. |
| Laches |
| An
unreasonable delay by a party making a claim or bringing an action,
so that the rights of said party are waived. |
| Land Development |
| A loan for
the acquisition of raw land in anticipation of future zoning and
development. |
| Late Charge |
| The penalty
a borrower must pay when a payment is made a stated number of days
(usually 15) after the due date. |
| Lateral Support |
| The
landowner has the right to the natural support of his land by
adjoining land. The adjoining landowner does not have the right to
change his land so as to cause the support to be weakened or
removed. |
| Lease |
| A written
agreement between the property owner and a tenant that stipulates
the conditions under which the tenant may possess the real estate
for a specified period of time and rent. |
| Lease-Purchase Mortgage Loan |
| A financing option that allows low and moderate
income buyers to lease a home with the option to buy. Each month's
payment includes principal, interest, taxes, and insurance (PITI) on
the first mortgage, plus an additional amount that accrues in a
savings account and is used for a down payment. |
| Leasehold Estate |
| A way of
holding title to a property wherein the mortgagor does not actually
own the property but rather has a recorded long-term lease on it.
|
| Leasing Commission Reserve Funds |
| set aside
on a monthly basis to pay leasing commission necessary to release
vacant space during the term of the loan. |
| Legal Description |
| A property description, recognized by law that
is sufficient to locate and identify the property without oral
testimony. |
| Lender |
| An institution that makes loans to borrowers on
real estate. |
| Lender Margin |
| The profit the lender anticipates to receive
from the loan. |
| Lenders |
| Institutions that make loans to borrowers on
real estate. |
| Letter of Credit |
| A written
statement permitting an individual to draw on a bank, or stating
that the bank will honor their credit up to the stated amount. |
| Letter of Intent |
| A written statement expressing that a buyer or
developer is interested in a property. The letter is not legally
binding. |
| Liabilities |
| A person's financial obligations. Liabilities
include long-term and short-term debt, as well as any other amounts
that are owed to others. |
| Liability Insurance |
| Insurance coverage that offers protection
against claims alleging that a property owner's negligence or
inappropriate action resulted in bodily injury or property damage to
another party. |
| Lien |
| Any claim against a property, including
mortgages, unpaid taxes, or repair bills, or other unpaid charges.
Prospective property buyers conduct a title search to determine
whether any liens against the property exist. A lien must be filed
or recorded with the local county government to be attached to a
property title. |
| Lifetime Cap |
| A provision of an adjustable rate mortgage (ARM)
that limits the total increase in interest rates over the life of
the loan. |
| Lifetime Payment Cap |
| For an adjustable-rate mortgage (ARM), a limit
on the amount that payments can increase or decrease over the life
of the mortgage. |
| Line of Credit |
| An agreement by a commercial bank or other
financial institution to extend credit up to a certain amount for a
certain time to a specified borrower. On a property it is
often called a HELOC. |
| Liquid Asset |
| A cash
asset or an asset that is easily converted into cash. |
| Lis Pendens |
| A legal
notice of action given when a lawsuit is pending. |
| Loan |
| A sum of borrowed money (principal) that is
generally repaid with interest. |
| Loan Application |
| A non-binding agreement between a lender and a
prospective borrower showing the terms they are going to submit to
the underwriter for approval. A cash deposit is usually part of the
agreement. |
| Loan Closing |
| The end of the process of purchasing or
refinancing a home. Often done at a title company where the
documents are signed, recorded, and the loan funded usually within 3
days of signing the legal closing documents. |
| Loan Commitment |
| Formal offer by a lender stating the terms under
which it agrees to loan money to a homebuyer. |
| Loan Origination |
| The process by which a mortgage lender brings
into existence a mortgage secured by real property. |
| Loan Policy |
| A title insurance policy that insures a
mortgagee or beneficiary under a deed of trust against loss caused
by invalid title. |
| Loan Servicing |
| The collection of mortgage payments from
borrowers and related responsibilities of a loan servicer. |
| Loan-to-Value |
| A ratio calculated by dividing the mortgage
amount by the value of the property. A lender will often use the
lower of the purchase price or the appraised fair market value when
the loan is used to purchase a property. |
| Local Housing Authority |
| A
government agency that monitors and executes community housing
development programs. |
| Lock |
| The period, expressed in days, during which a
lender will guarantee a rate. |
| Lock Period |
| The amount of time that a lender will guarantee
a loan's interest rate. Once you've locked in the interest rate on a
loan, the lender will guarantee that rate for a certain period of
time, usually for 30, 45, or 60 days. |
| Lockout Period |
| A period of time after the loan is originated
during which a borrower cannot prepay the mortgage loan, or a period
when pre-paying it will result in a pre-payment penalty. |
| London Inter-Bank Offer Rate (LIBOR) |
| The rate of interest that the largest
international banks charge each other for loans. |
| Long Term Financing |
| A mortgage or deed of trust that lasts at least
ten years or more. |
| Long Term Lease |
| A lease with a term of five or more years. Lot Size |
| The total
square footage of a property. |
| Manufactured |
| Homes that
are built off site and are on their own steel under carriage with
wheels and axles and pulled to the site. They are usually doublewide
or triplewide, but can be singlewide. If put on a permanent
foundation with wheels and axles removed, it is taxed as “real
property.” |
| Manufactured Construction Loan |
| A loan
provided for the development of a manufactured property,
specifically home transport, removal of the axles and wheels,
permanent foundation development, etc… |
| Margin |
| (Also called 'Spread'). The number of percentage
points a lender adds to the index value to calculate the adjustable
rate mortgage (ARM) interest rate at each adjustment period. A
representative margin would be 2.75%. |
| Market Approach |
| A method of appraising a property by comparing
sales prices of similar properties that have recently sold. |
| Market Value |
| The price as determined by buyers and sellers in
an open market. |
| Marketable Title |
| A title that is free and clear of objectionable
liens, clouds, or other title defects. A title which enables an
owner to sell his property without encumbrances. |
| Master Association |
| A
homeowners' association in a large condominium or planned unit
development (PUD) project that is made up of representatives from
associations covering specific areas within the project. In effect,
it is a 'second-level' association that handles matters affecting
the entire development, while the 'first-level' associations handle
matters affecting their particular portions of the project. |
| MAT |
| Monthly
Average Treasury index. |
| Maturity |
| The date on which the principal balance of a
loan, bond, or other financial instrument becomes due and payable.
|
| Mechanic's Lien |
| Any payment
owned to a contractor for work done on the property. |
| Merged Credit Report (Tri-merge Report) |
| A credit report that contains information from
the three main credit bureaus, Equifax, Experian and TransUnion.
When the report is created, the information is compared for
duplicate entries. Any duplicates are combined to provide a summary
of your credit. |
| Metes and Bounds |
| A way of
describing the boundaries of land by courses, directions, distances,
and monuments. |
| Mile |
| A linear
measurement equal to 5280 feet on land and 6076 feet across
water. |
| Mini Perm |
| Short-term
financing, usually three to six years. |
| Mobile Home |
| Usually
within a home park, and generally a single to doublewide. It can be
a triple wide with wheels and axles not removed, therefore taxed as
a moving vehicle. |
| Modular |
| Pre-fabricated at a factory, then moved to site
and onto a permanent foundation (no under carriage, wheels, or
axles). |
| Money Market Account |
| A savings
account that provides bank depositors with many of the advantages of
a money market fund. Certain regulatory restrictions apply to the
withdrawal of funds from a money market account. |
| Money Market Fund |
| A mutual
fund that allows individuals to participate in managed investments
in short-term debt securities, such as certificates of deposit and
Treasury bills. |
| Monthly Payment Mortgage |
| A mortgage that requires payments once a month
to reduce debt. This is the usual payment structure for almost
all mortgages. Payments are usually due on the first or the
fifteenth of the month. |
| Mortgage |
| A legal document that pledges a property to the
lender as security for the payment of a debt. |
| Mortgage Banker |
| A banker who originates, sells, and services
mortgages in the secondary mortgage market. Individual loan
officiers who work for mortgage bankers and banks are not required
to be licensed or take any type of training or classes. Some
banks have in house training programs on their particular programs,
while others allow loan officiers to train "on the job". |
| Mortgage Bankers Association of America (MBA) |
| A trade organization of the mortgage bankers and
brokers in the United States. They provide seminars and publications
for its members and sponsors. |
| Mortgage Broker |
| An individual or company which brings borrowers
and lenders together for the purpose of loan origination, but which
does not originate or service the mortgage. In most states,
including Florida, mortgage brokers must pass a certification exam,
take continuing education classes in lending practices, be licensed
by the state, and abide by the state and federal laws and
statutes regarding lending practices. |
| Mortgage Commitment |
| A written notice from the bank or other lending
institution saying it will advance mortgage funds in a specified
amount to enable a buyer to purchase a house. |
| Mortgage Correspondent |
| An authorized person who represents a financial
institution in a certain area for the purpose of placing loans. |
| Mortgage Disability Insurance |
| A disability insurance policy which will pay the
monthly mortgage payment in the event of a covered disability of an
insured borrower for a specified period of time. |
| Mortgage Insurance (MI) |
| Insurance written by an independent mortgage
insurance company protecting the mortgage lender against loss
incurred by a mortgage default. Usually required for loans with an
LTV of 80.01% or higher. |
| Mortgage Insurance Premium |
| The payment made by a borrower to the lender for
transmittal to HUD to help defray the cost of the FHA mortgage
insurance program and to provide a reserve fund to protect lenders
against loss in insured mortgage transactions. In FHA insured
mortgages this represents an annual rate of one-half of one percent
paid by the mortgagor on a monthly basis. |
| Mortgage Life Insurance |
| A type of term life insurance often bought by
mortgagors. The amount of coverage decreases as the principal
balance declines. In the event that the borrower dies while the
policy is in force, the debt is automatically satisfied by insurance
proceeds. |
| Mortgage Note |
| A written agreement to repay a loan. The
agreement is secured by a mortgage, serves as proof of indebtedness,
and states the manner in which it shall be paid. The note states the
actual amount of the debt that the mortgage secures and renders the
mortgagor personally responsible for repayment. |
| Mortgage Reduction Programs |
| A type of accelerated payment program where
payments are made more frequently (bi-weekly or weekly) rather than
conventional monthly payments. This normally results in paying the
equivalent of 13 monthly payments each year. The net result
may be a savings on the total interest paid. |
| Mortgage Securities Pool |
| A method by
which securities backed by the value of real estate mortgages are
issued in the market for investment purposes. |
| Mortgage Servicing |
| The lender or company acting for the lender, for
a service fee, that manages the mortgage by collecting payments,
releasing the lien upon payment in full, foreclosing if in default,
paying taxes and insurance, etc. |
| Mortgagee |
| The person or company who receives the mortgage
as a pledge for repayment of the loan. The mortgage lender. |
| Mortgagor |
| The mortgage borrower who gives the mortgage as
a pledge to repay. |
| Multi-dwelling Units |
| Properties
that provide separate housing units for more than one family,
although they secure only a single mortgage. |
| Multi-family Mortgage |
| A
residential mortgage on a dwelling that is designed to house more
than four families, such as a high-rise apartment complex. |
| Negative Amortization |
| (Also called 'Deferred Interest'). If the
payments are too small to cover the interest due on a loan, the
remaining interest owed is added to the outstanding loan balance,
causing negative amortization. |
| Net Cash Flow |
| The income
that remains for an investment property after the monthly operating
income is reduced by the monthly housing expense, which includes
principal, interest, taxes, and insurance (PITI) for the mortgage,
homeowners' association dues, leasehold payments, and subordinate
financing payments. |
| Net Effective Income |
| Gross income less federal income tax. Net Operating Income |
| Gross
income less vacancy and collection loss, operating expenses and
replacement reserves. (NOI) |
| Net Proceeds |
| The amount
of cash received from the sale of the property, not including
relevant expenses. |
| Net Worth |
| The value
of all assets, including cash, less total liabilities. |
| Niche Lender |
| A
specialized lender that offers particular products to make loans to
borrowers. |
| Niche Lenders |
| Specialized
lenders that offer particular products to make loans to borrowers.
|
| NINA (no income no assets) |
| This is a
type of loan documentation used when borrower's do not wish to
disclose income or assets, usually due to the complexity of the
borrowers income. Also more commonly called "stated income,
stated assets" mortgage. |
| No Cash-out Refinance or Rate and Term Refinancing |
| A refinance transaction in which the new
mortgage amount is limited to the sum of the remaining balance of
the existing first mortgage, closing costs (including prepaid
items), points, the amount required to satisfy any mortgage liens
that are more than one year old (if the borrower chooses to satisfy
them). Second mortgages taken out to purchase the house may
qualify to be paid. No cash in hand allowed beyond a certain
amount. Sometimes this is defined as 1% of loan amount,
or as a dollar figure, usually $2000.00. |
| No Income Verification (no-doc) |
| A loan that requires little or no income
verification. |
| Non-Arms Length Transaction |
| When
parties involved in a real estate transaction have some relationship
with one another. ie; the borrower works for the lender. |
| Non-Assumption Clause |
| A mortgage
clause prohibiting the transfer of a mortgage to another borrower
without the approval of the lender. |
| Non-Conforming Loan |
| Conventional home mortgages not eligible for
sale and delivery to either Fannie Mae (FNMA) or Freddie Mac (FHLMC)
because borrower or property do not meet underwriting guidelines.
Non-conforming loans usually incur a higher rate and an origination
fee premium. These also include jumbo loans. The current loan
limit above which the mortgage is considered a jumbo is
$359,650. Thes types of loans are usually only available
through Licensed Mortgage Brokers and finance companies. Both
fees and rates are much higher from finance companies than any other
source. |
| Non-Liquid Asset |
| An asset
that cannot easily be converted into cash. |
| Non-Owner Occupant |
| Investment
ownership in which a tenant, and not the owner, occupies the
property. |
| Non-recourse |
| A loan that
is secured by collateral, usually property. If the borrower
defaults, then the issuer can seize the collateral, and the borrower
is not personally liable. |
| Nonbearing Wall |
| Any wall
that separates areas, but is not a weight bearing wall, such as the
outer walls. |
| Nonexclusive Listing |
| When a real estate broker has an exclusive
listing, but the owner can sell his property without an agent and
not be liable to pay a commission. This is also called an agency
agreement. |
| Notarization |
| When a Notary Public certifies that someone
signing a document has been properly identified. The content of the
document is not certified, just the signature. Mortgage loan
documents and real estate deeds and documents are normally required
to be notarized at closing. |
| Note (Promissory Note) |
| A written agreement containing a promise of the
signer to pay to a named person, or order, or bearer, a definite sum
of money at a specified date or on demand. Usually
concurrent with a mortgage, defining the borrowers obligation
to re-pay the money borrowed through mortgaging the house. |
| Note Rate |
| The interest rate stated on a mortgage note. |
| Notice of Cessation |
| Concerning
a construction project, a notice given that work has stopped. This
is done to accelerate the period for filing a mechanic’s lien. |
| Notice of Default (NOD) |
| A formal
written notice to a borrower that a default has occurred and that
legal action may be taken. |
| Notorious Possession |
| A
requirement for adverse possession, which is so open that it is
assumed that the owner has notice of the possession. |
| Nuncupative Will |
| A will
given orally, usually in a deathbed situation, before witnesses who
later testify to its authenticity. |
| Oath |
| An
affirmation that binds someone legally and morally. |
| Offset Statement |
| A statement
by a lien holder to a buyer stating the balance due on existing
liens against the property being purchased. |
| "One, Two, Three" Financing |
| A type of
financing where the buyer assumes an existing loan, obtains a second
mortgage from a third party lender, and takes a third loan from the
seller. |
| One-Year Adjustable |
| A mortgage program where the annual rate changes
yearly. |
| Open-End Mortgage |
| A loan
amount that can be increased upon mutual agreement of the lender and
the borrower. |
| Operations and Maintenance Plan Program |
| A plan set
forth to mitigate and remedy a known or potential environmental
issue for instance, asbestos contamination. Oftentimes referred to
as an "O&M plan." |
| Option |
| The right
to buy or sell property or sign a contract, based upon certain terms
and conditions. Usually applicable to specific time frames during
which the 'option' may be exercised. |
| Original Principal Balance |
| The total amount of principal owed on a mortgage
before any payments are made and without added interest. |
| Origination Fee |
| A fee imposed by a lender or mortgage broker to
cover certain processing expenses in connection with making a real
estate loan. Usually a percentage of the amount loaned, such as one
percent. |
| Owner Financing |
| A property purchase transaction in which the
property seller provides all or part of the financing. |
| Owner Occupied |
| 'Owner Occupied' means the property is the
owner's primary residence. |
| Ownership |
| The right to enjoy and use property to the
exclusion of others. |
| Participation |
| A mortgage
where the lender receives a percentage of the gross proceeds along
with the mortgage payments. |
| Participation Certificates |
| A mortgage
security rather than a mortgage. The certificate is more readily
marketable. |
| Payment Adjustment Period |
| The length of time, typically six months to a
year, between changes to the ARM borrower's P&I payment. |
| Payment Buy Down |
| Payment buy downs occur when a third party,
typically a builder, pays part of the initial P&I payments for a
year or two, so that the borrower has smaller payments and can
qualify for the loan. |
| Payment Cap |
| A limit on the amount the payment can be
changed at the end of each Payment Adjustment Period. |
| Payment Discount |
| In a payment discount, the lender reduces the
first year's interest rate to make the mortgage more attractive to
borrowers. |
| Payoff |
| The full payment of an existing loan or any
other type of lien. |
| Perfecting Title |
| The
process of eliminating any adverse claims against a title. |
| Periodic Payment Cap |
| A limit on the amount that payments can
increase or decrease during any one-adjustment period. |
| Periodic Rate Cap |
| A limit on the amount that the interest rate
can increase or decrease during any one adjustment period,
regardless of how high or low the index might be. |
| Personal Property |
| Any
property that is not attached to real property. |
| Physical Assessment |
| Report
engineering and physical assessment of the property. Completed in
addition to the appraisal. Sometimes called a home
inspection. |
| PITI |
| Principal, Interest, Taxes and Insurance are
components of a mortgage payment. |
| PITI Ratio |
| The ratio used in mortgage lending decisions
that consists of the principal, interest, tax, and insurance payment
to the total gross income. |
| Planned Unit Development (PUD) |
| A project or subdivision that includes common
property that is owned and maintained by a homeowners' association
for the benefit and use of the individual PUD unit owners. |
| Plat |
| A map or chart of a lot, subdivision or
community drawn by a surveyor showing boundary lines, buildings,
improvements on the land, and easements. |
| Pledged Account Mortgage (PAM) |
| Money
that is placed in a pledged savings account. This fund, and earned
interest, is used to reduce monthly mortgage payments. |
| Points |
| One point represents 1% of the mortgage loan
amount. This is usually how charges levied by the mortgage
lender to obtain a better interest rate, the mortgage broker's fee
to obtain the loan, and even the realtor's fee to broker the sale
are expressed. Usually payable at closing.
|
| Possibility of Reverter |
| The term
refers to the chance that an estate will exist as some future time.
An example would be a property sold on the condition that it would
be a park, but if not used for that, it would revert back to the
seller who would then have a “possibility of reverter.” |
| Power of Attorney |
| A legal
document that authorizes another person to act on one’s behalf. A
power of attorney can grant complete authority or can be limited to
certain acts and/or certain periods of time. |
| Pre-approval |
| A process whereby a potential home buyer
secures a conditional credit approval before looking for a home or
making an offer on a home. This requires filling out an
application and normally pulling the borrower's credit report.
Many mortgage brokers charge a small fee for this service.
Some brokers will apply this fee towards the processing costs on a
closed loan. |
| Pre-paids |
| Those expenses of property which are paid in
advance of their due date and will usually be prorated upon sale,
such as taxes, insurance, and interest. The seller can recoup
those fees they have already paid, and the buyer will be required to
pay these fees up front. |
| Pre-qualification |
| The process of determining how much money a
prospective homebuyer will be eligible to borrow before they begin
looking for a home. This can be part of a
pre-approval. |
| Premium |
| The
amount paid for a property above the expected price, or the value of
a mortgage or bond in addition to its face amount. |
| Prepayment |
| Payment of mortgage loan, or part of it, before
due date. |
| Prepayment Penalty (PPP) |
| A charge imposed by a mortgage lender on a
borrower who wants to pay off part or all of a mortgage loan in
advance of schedule. Many mortgages have PPP's that last 2-3
years at the beginning of the loan period. |
| Prescriptive Easement |
| An
easement granted by a court based on the assumption that a written
easement was given after a period of continuous use of the land,
although none existed. |
| Prime Rate |
| The interest rates that banks charge to their
preferred customers. This rate is not indicative of current
mortgage rates, although both normally go up and down in sync, Prime
Rate is estimated to be available to less than 1% of borrowers. |
| Principal |
| The amount borrowed or remaining unpaid. Also,
that part of the monthly payment that reduces the outstanding
balance of a mortgage. |
| Principal Balance |
| The outstanding balance of principal on a
mortgage, which does not include interest or any other charges. |
| Private Mortgage Insurance (PMI) |
| Insurance provided by nongovernmental insurers
that protect lenders against loss if a borrower defaults. Fannie Mae
generally requires private mortgage insurance for loans with
loan-to-value (LTV) percentages greater than 80%. Licensed
Mortgage Broker have access to programs that under certain
circumstances do not require PMI until the LTV exceeds 90%. |
| Pro rate |
| The
allocation of proportionate shares of certain expenses, such as
interest, to be paid by the buyer and seller at closing. |
| Promissory Note (or Note) |
| A written promise to repay a specified amount
over a specified period of time. |
| Property Classification |
| A classification that a lender gives to a
property according to its age and needed repairs, or the
classification for tax purposes according to the property's
type or use. For instance, SFR (single family residence),
condominium, townhouse, etc. |
| Property Tax |
| Local tax assessed on the market value of a
property. |
| Public Auction |
| A meeting
in an announced public location to sell property to repay a mortgage
that is in default. |
| Purchase Agreement |
| A binding agreement to purchase property under
certain terms. See "Agreement of Sale". |
| Purchase Money Transaction |
| The
acquisition of property through the payment of money or its
equivalent. |
| Quadrant |
| A
measurement that is a quarter section of a circle, also one of the
quarters that is created by two intersecting roads or streets. |
| Qualification |
| The process that determines an applicant's
financial ability to meet the terms of the loan. Necessary to
aquire a pre-approval or a mortgage. |
| Qualifying Ratios |
| Guidelines applied by lenders to determine how
large a loan to grant a homebuyer. The debt ratio that is
acceptable to get a mortgage of a certain amount. |
| Quantity Survey Method |
| A method
of arriving at an estimate of costs for new construction by a
detailed estimate of quantities of necessary building materials plus
labor costs. |
| Quarter Section |
| A
measurement of a quarter of a section and contains 160 acres. |
| Quietus |
| The final
disposition of a debt or a claim. |
| Quitclaim Deed |
| A deed that transfers whatever interest or
title a grantor may have, without warranty. |
| Radon |
| A radioactive gas found in some homes that in
sufficient concentrations could cause health problems. |
| Rate |
| The annual rate of interest on a loan,
expressed as a percentage of 100. |
| Rate and Term Refinance |
| Paying off an existing loan with the proceeds
from a new loan, using the same property as collateral. |
| Rate Caps |
| (Also called 'Interest Rate Caps'). A limit on
the amount of which the interest rate charged, either at each
adjustment period or over the life of the loan. |
| Rate Index |
| An index used to determine interest rate
changes for certain adjustable rate mortgages (ARM). |
| Rate Lock |
| A commitment issued by a lender to a borrower
or other mortgage originator guaranteeing a specified interest rate
for a specified period of time. |
| Ratification |
| The
affirmation of a prior act that was not legally binding and making
it a legal effect. |
| Raw Land |
| Land
without added improvements such as sewers, utilities, streets, or
structures. |
| Real Estate |
| Land and permanently affixed items such as
buildings, fences, etc. |
| Real Estate Broker |
| A middleman or agent who buys and sells real
estate for a company, firm, or individual on a commission basis. The
broker does not have title to the property, but generally represents
the owner. |
| Real Estate Investment Trust (REIT) |
| A mutual
fund that sells shares of ownership and must be invested in real
estate or mortgages. |
| Real Estate Market |
| A market for potential buyers or sellers of
real property at a given time. The property or homes up for
sale at a given time. |
| Real Estate Owned |
| (REO). A
term frequently used by lending institution as applied to ownership
of real property acquired for investment or as a result of
foreclosure. |
| Real Estate Settlement Procedures Act (RESPA) |
| A Federal law that requires lenders to provide
home mortgage borrowers with information about known or estimated
settlement costs. |
| Real Property |
| Land and appurtenances, including anything of a
permanent nature such as structures, trees, minerals, and the
interest, benefits, and inherent rights thereof. |
| Realtor |
| A real estate broker or an associate who holds
active membership in a local real estate board that is affiliated
with the National Association of Realtors. |
| Rebate Compensation |
| A fee which a mortgage broker or buyer may
receive from a wholesale lender, which can be used to cover closing
costs if given to the borrower, or as additional revenue for the
broker. Loans with rebates to the borrower often carry higher
interest rates. |
| Recapture of Depreciation |
| Upon the
sale of a property, the amount of depreciation taken above
straight-line depreciation. |
| Recasting |
| Revision
of the terms of an existing mortgage to cure delinquency, such as
extending the loan or modifying the interest rate. |
| Recission |
| The
cancellation or annulment of a transaction or contract by the
operation of a law or by mutual consent. |
| Reconveyance |
| A
transfer of title from a trustee to the owner of real estate, when
the title is held as collateral, at the time the trust deed is paid
in full. |
| Recorder |
| The
public official who keeps records of transactions that affects real
property in the area. |
| Recording |
| The noting in the registrar’s office of the
details of a properly executed legal document, such as a deed, a
mortgage note, a satisfaction of mortgage, or an extension of
mortgage, thereby making it a part of the public record. |
| Recording Fee |
| Fee charged by a government for entering into
the public record a real estate purchase or
sale. Sometimes listed as a separate item on the loan
settlement statement, or combined with doc stamps and other
miscellaneous government fees. |
| Redemption |
| A
defeasable title to land that is cancelled by a mortgage foreclosure
or tax sale of the property. |
| Redemption Period |
| The
period of time allowed during which an owner may buy back their
foreclosed properties by paying all delinquent mortgage payments,
plus interest and fees. The time period varies state by state. |
| Refinancing |
| The process of paying off one loan with the
proceeds from a new loan using the same property as security. |
| Rehabilitation Mortgage |
| A
mortgage created to cover the costs of repairing, improving and
acquisition of an existing property. |
| Rehabilitation Tax Credit |
| The Tax
Reform Act of 1986 allows a 20% tax credit for rehabilitating
historic structures and 10% for buildings in service after 1936. |
| Reinstatement |
| Bringing
a note, mortgage, deed of trust, etc. from default to good
standing. |
| Release of Mortgage |
| A document distributed by the mortgagee when
the mortgage loan has been paid in full. |
| Remaining Balance |
| The amount of principal that has not yet been
repaid. |
| Remaining Term |
| The original amortization term minus the number
of payments that have been applied. |
| Renegotiable Rate Mortgage |
| See "Adjustable Rate Mortgage (ARM)" |
| Rent Step-Up |
| An
agreement in which the rent increases every period for a certain
amount of time or for the duration of the lease. |
| Repayment Plan |
| An
arrangement made to repay delinquent installments or advances.
Lenders' formal repayment plans are called 'relief provisions.' |
| Replacement Reserves Funds |
| A fund
set aside from net operating income (NOI) to pay eventual wear and
tear of a property. Amount is determined by property type. Normal
reserves on a multi-family would be $250-$350 per unit, and on
retail deals it is usually done by square foot. |
| Residential Mortgage Credit Report (RMCR) |
| A report
requested by your lender that utilizes information from at least two
of the three national credit bureaus and information provided on
your loan application. |
| Residual Income |
| The
amount of money remaining after mortgage payment and all other debts
are paid: typically used with VA loans. |
| Restraint of Alienation |
| Any
restriction placed against the vesting/sale of a property. Some
restrictions are allowed, but must conform to the rule against
perpetuities and free right of an owner to sell. |
| Restrictive Covenants |
| Private
restrictions limiting the use of real property. Restrictive
covenants are created by deed and may 'run with the land,' binding
all subsequent purchasers of the land, or may be 'personal' and
binding only between the original seller and buyer. In the
determination of whether a covenant runs with the land, or is
personal property is governed by the language of the covenant, the
intent of the parties, and the law in the State where the land is
situated. Restrictive covenants that run with the land are
encumbrances and may affect the value and marketability of title.
Restrictive covenants may limit the density of buildings per acre,
regulate size, style, or price range of buildings to be erected, or
prevent particular businesses from operating or minority groups from
owning or occupying homes in a given area. (This latter
discriminatory covenant is unconstitutional and has been declared
unenforceable by the U.S. Supreme Court). |
| Reverse Mortgage |
| An arrangement in which a homeowner borrows
against the equity in his/her home and receives regular monthly
tax-free payments from the lender. |
| Revolving Credit |
| Open lines of credit that are subject to
adjustable payments in accordance with the balance, such as credit
cards. |
| Revolving Liability |
| A credit arrangement, such as a credit card,
that allows a customer to borrow against a pre-approved line of
credit when purchasing goods and services. The borrower is billed
for the amount that is actually borrowed plus any interest due. |
| Right of First Refusal |
| A
provision in an agreement that requires the owner of a property to
give another party the first opportunity to purchase or lease the
property before he or she offers it for sale or lease to others. |
| Right of Ingress or Egress |
| The right
to enter or leave designated premises. |
| Right of Survivorship |
| In joint
tenancy, the right of survivors to acquire the interest of a
deceased joint tenant. |
| Right of Way |
| Land set
aside as an easement or in fee, either by agreement or condemnation,
to have the right to be on or travel on. |
| RTC (Resolution Trust Corporation) |
| Formed to
resolve thrift failures over the next three years and dispose of
their assets and liabilities. |
| Rural Housing Service (RHS) |
| A U.S.
Department of Agriculture program that provides various financing
programs to aid in the development of rural America. |
| Safety Clause |
| A clause in a listing that protects the real
estate broker from having buyer and seller wait until the listing
expires to make a deal, thereby avoiding paying the commission. |
| Sale/Lease Back |
| When a
lender purchases a property and leases it back to the seller for a
specified amount of time. |
| Sales Agreement |
| See Agreement of sale. |
| Sales Comparison Approach |
| A method of appraising a property by comparing
recent sales of comparable properties and making the necessary
adjustments for any differences. |
| Satisfaction of Mortgage |
| A document distributed by the mortgagee when
the mortgage loan has been paid in full. Also referred to as
"release of mortgage." |
| Savings and Loans |
| Institutions that are chartered to hold savings
and make real estate loans, as well as offer checking accounts,
consumer loans, and other services offered by banks. |
| Seasoned Mortgage |
| A mortgage where the borrower has made
consistent payments for a year or longer. |
| Second Mortgage |
| A mortgage that has rights subordinate to the
rights of the first mortgage holders. Can be for purchase or
refinance, concurrent or stand alone. |
| Secondary Financing |
| Any additional financing liened against a
property, after the primary or first lien. If the property is
foreclosed on, proceeds from the sale of the property will be used
to pay off the existing liens in the order that they are recorded on
the title. For that reason, a lender considers secondary financing
to be riskier than a first lien position loan. |
| Secondary Mortgage Market |
| The
buying and selling of existing mortgages. |
| Self-Amortization |
| Occurs when monthly payments allow a loan to be
repaid, including principal and interest, over its terms without any
balloon payments. |
| Seller Carry-Back |
| An agreement in which the owner of a property
provides secondary financing in combination with a lender first. |
| Seller Contributions |
| Seller provided funds include all allowable
transaction costs to be paid by the seller. |
| Seller-Provided Funds |
| (Also called 'Seller Contributions').
Seller-provided funds include all allowable transaction costs to be
paid by the seller. |
| Separate Property |
| Real
property that is owned by one person exclusive of any interest of
another person. |
| Servicer |
| The party
who has entered into an agreement with the insured to service a
loan. |
| Servicing Fee |
| The
monthly or yearly fee made by a lender to the correspondent lender
who originally made the loan for the servicing of the loan.
Servicing rights may be bought or sold with the loan. |
| Settlement (Closing) |
| The process by which all financial dealings and
contractual arrangements are completed for the buyer and seller. At
the time of settlement, or closing, all debts are paid, adjustments
made, and money disbursed, and a deed is prepared in the new owner's
name. |
| Settlement Costs |
| See "Closing Costs". |
| Shared Appreciation Mortgage (SAM) |
| A
mortgage in which a borrower receives an interest rate below the
market rate, in return, the lender (or another investor) shares part
of the future property value appreciation. |
| Simple Interest |
| Interest that is calculated only on the
principle balance. |
| Simple Premium |
| A premium
which provides coverage for more than a year. |
| Simultaneous Closing |
| A first and second lien position
loans that close at the same time. |
| Single Premium |
| A premium
which provides coverage for more than a year. |
| Singlewide |
| A mobile
home consisting of one complete unit. |
| Special Assessments |
| A special
tax imposed on property, individual lots, or all property in the
immediate area, for road construction, sidewalks, sewers,
streetlights, etc. |
| Special Lien |
| A lien
that binds a specified piece of property, unlike a general lien,
which is levied against all one's assets. It creates a right to
retain something of value belonging to another person as
compensation for labor, material, or money expended in that person's
behalf. In some localities it is called 'particular' lien or
'specific' lien. (See Lien). |
| Special Warranty Deed |
| A deed in which the grantor conveys title to
the grantee and agrees to protect the grantee against title defects
or claims asserted by the grantor and those persons whose right to
assert a claim against the title arose during the period the grantor
held title to the property. In a special warranty deed, the grantor
guarantees to the grantee that he has done nothing during the time
he held title to the property which has, or which might in the
future, impair the grantee's title. |
| Spread |
| The difference between the rate at which the
money can be borrowed (wholesale) and the rate at which it is loaned
(retail). It can also mean the difference between the price offered
by a buyer and the price asked for by the seller of a property. |
| Stated Income |
| Some loan products require only that applicants
'state' the source of their income without providing supporting
documentation such as tax returns. |
| Step-Rate Mortgage |
| A
mortgage program that allows for the interest rate to increase on a
particular schedule. At the end of the specified period, the rate
and payments stay the same for the remainder of the loan. A
particular type of ARM. |
| Stick Built |
| A
residential home that is built on site, from the ground up, from a
pre-determined set of plans and materials. |
| "Subject to" Clause |
| A clause
in a deed that states that the grantee takes title "subject to" an
existing mortgage. The original mortgagor is alone responsible for
any deficiency, should there be foreclosure of the mortgage. |
| Sublease |
| A lease
agreement between the lessee and a third party for a term no longer
than the remaining portion of the original lease. |
| Subordination Agreement |
| An agreement where a prior lien agrees to take
a lesser position to a new lien. |
| Sub-prime |
| Credit with higher risk characteristics, such
as slow pays, bankruptcy, or collection accounts. These credit
situations can obtain a mortgage from Licensed Mortgage Brokers,
usually at a higher rate and fee. |
| Subprime Lender |
| A Lender that makes loans to borrowers on real
estate who have credit with higher risk characteristics, such as
slow pays, bankruptcy, or collection accounts. |
| Subprime Lenders |
| Lenders
that make loans to borrowers on real estate who have credit with
higher risk characteristics, such as slow pays, bankruptcy, or
collection accounts. |
| Suburban |
| A
description of a town or an unincorporated, developed area that has
a close proximity to a city. Largely residential and dependent on
the closest city for employment, etc. |
| Super Jumbo Loan |
| A loan amount that is over a
specified amount, usually $750,000 to 1 million dollars, depending
on the lender. |
| Surface Rights |
| The
rights (easements) to use the surface of the land. If subsurface
rights are involved, the right also to drill or mine beneath the
surface. |
| Survey |
| A professional examination of a property. A
survey usually will reveal the size of a property, its boundary
distances, ground contours, and where improvements or alterations
have been made. This produces a print or drawing
with notations showing the measurements of the boundaries of a
parcel of land, together with the location of all improvements on
the land and sometimes its area and topography. |
| Swap Spread |
| Exchanging one asset or liability for a similar
asset or liability to either lengthen or shorten maturities, or
raise or lower coupon rates. |
| Sweat Equity |
| The
equity produced by a purchaser doing work on a property being built.
|
| Take Out Commitment |
| An
agreement by a lender to place a “long-term,” take out loan on a
property after the construction is complete. |
| Take-back |
|
A loan made directly from the seller to the buyer. Tax |
| As applied to real estate, an enforced charge
imposed on persons, property, or income, to be used to support the
State. The governing body in turn utilizes the funds in the best
interest of the general public. |
| Tax Base |
| To determine the amount of tax due. The
assessed value of the property is multiplied by the tax rate. |
| Tax Deduction |
| A tax
deduction allowed by the government and used to reduce taxable
income. The government allows certain deductions to be subtracted
such as mortgage interest. |
| Tax Deed |
| A deed on
a property purchased at public sale for the nonpayment of taxes. |
| Tax Lien |
| A type of
lien placed on a title when the owner has not paid property or
assessment taxes or other state and federal taxes. |
| Teaser Rate |
| An
advertised very low, but very temporary, introductory rate on an
Adjustable Rate Mortgage (ARM). Be wary of any lender or
mortgage broker who advertises a rate that seems "too good to be
true", it probably is. |
| Tenancy at Will |
| A type of
tenancy where a person has possession by permission of the owner but
without an agreement for a fixed term. |
| Tenancy by the Entirety |
| A type of
joint tenancy of property that provides right of survivorship and is
available only to a husband and wife. |
| Tenancy in Common |
| A type of
joint tenancy of property without right of survivorship, each
tenants portion of ownership is distributable under will. |
| Tenant Improvement Reserves Funds |
| Funds set
aside on a monthly basis to improve the property for current and or
future tenants. |
| Tenant-Stockholder |
| The
obligee for a cooperative share loan, who is both a stockholder in a
cooperative corporation and a tenant of the unit under a proprietary
lease or occupancy agreement. |
| Term |
| The period of time which covers the life of the
loan. For example, a 30 year fixed mortgage has a term of 30
years. |
| The Office of Thrift Supervision (OTC) |
| Charters
federal thrifts, serves as the primary federal examiner and
regulator of federal and state-chartered savings associations, and
administers laws governing savings and loan holding companies. |
| Third Mortgage |
| A mortgage that has rights
subordinate to the rights of the first and second mortgage
holders. |
| Third-party Origination |
| A process by which a lender uses another party
to completely or partially originate, process, underwrite, close,
fund, or package the mortgages it plans to deliver to the secondary
mortgage market. |
| Title |
| As generally used, the rights of ownership and
possession of particular property. In real estate usage, title may
refer to the instruments or documents by which a right of ownership
is established (title documents), or it may refer to the ownership
interest one has in the real estate. 1. Evidence of the right of
property ownership; can be held solely, jointly, in common, in
corporate, or partnership form. 2. The evidence one has of right to
possession of land. |
| Title Company |
| A company that performs and insures title
searches. Usually selected by the seller, they sometimes work as a
lender's agent. Depending on the preferences of the seller, buyer
and others involved in the sale, the closing might take place at the
title company's offices. |
| Title Insurance |
| Protects lenders or homeowners against loss of
their interest in property due to legal defects in title. Title
insurance may be issued to a 'mortgagee's title policy.' Insurance
benefits will be paid only to the 'named insured' in the title
policy, so it is important that an owner purchase an 'owner's title
policy', if he desires the protection of title insurance. |
| Title Plant (Title Service or Clearinghouse) |
| The part of a title company where data is kept
and updated on the records of all properties in a certain area and
can be readily searched. Most title companies use one of
several national companies to provide their data. |
| Title Search or Examination |
| A check of the title records, generally at the
local courthouse, to make sure the buyer is purchasing a house from
the legal owner and there are no liens, overdue special assessments,
or other claims or outstanding restrictive covenants filed in the
record, which would adversely affect the marketability or value of
title. |
| Total Debt Ratio |
| Monthly debt and housing payments divided by
gross monthly income. Also known as Back-End Ratio. |
| Total Expense Ratio |
| Total obligations as a percentage of gross
monthly income. The total expense ratio includes monthly housing
expenses plus other monthly debts. |
| Trade Equity |
| Equity
that results from a property purchaser giving his or her existing
property (or an asset other than real estate) as trade as all or
part of the down payment for the property that is being purchased.
|
| Transfer of Ownership |
| Any means
by which the ownership of a property changes hands. |
| Transfer Tax |
| State or
local tax payable when title passes from one owner to another. |
| Treasury Bill (T-Bill) |
| A debt security issued by the U.S. government
with maturity of one year or less. Treasury bills are exempt from
state and local taxes. Rates paid on T-bills are used as the
index on soem ARMs. |
| Treasury Index |
| An index that is used to determine interest
rate changes for certain adjustable-rate mortgage (ARM) plans. |
| Triple-Net Lease |
| A lease
in which the tenant pays rent as well as taxes, insurance, and
maintenance. |
| Triplewide |
| A type of
manufactured home that has 3 sections that are pulled to a site on
their own wheels and axles, then removed and placed on a permanent
foundation. Can be placed in a park or lot without removing wheels
and axles, but will be taxed as a moving vehicle. |
| Trust Deed |
| Conveyance of real estate to a third party that
is to be held for the benefit of another. |
| Trustee |
| A party
who is given legal responsibility to hold property in the best
interest of or 'for the benefit of' another. The trustee is one
placed in a position of responsibility for another, a responsibility
enforceable in a court of law. |
| Trustee in Bankruptcy |
| One
appointed by the court and holds the property in trust for the
creditors. |
| Trustor |
| A
borrower under a deed of trust and is one who deeds their property
to a trustee as security for repayment. |
| Truth in Lending Act (TIL) |
| A federal law that requires a truth in lending
statement to be disclosed on consumer loans. The statement discolses
certain facets of the mortgage program such as the annual percentage
rate (APR). The law also includes the right of recession period that
follows the closings of refinances. |
| Two- to-Four Family Property |
| A
property that consists of a structure that provides living space
(dwelling units) for two to four families, although ownership of the
structure is evidenced by a single deed. |
| Two-Step Mortgage |
| A type of adjustable rate mortgage (ARM) that
has a below-market interest rate for the initial part of the
mortgage (usually five or seven years), and then an adjusted
interest rate, usually market rate, for the remainder of the
mortgage. |
| U.S. Treasury Bill |
| T-bills that are short-term securities with
maturities up to one year. Issued by the government at a discount
from face value. Rates currently being paid on Treasury Bills
are used as the index rate on some ARM's. |
| U.S. Treasury Bond |
| Long-term securities with maturities greater
than 10 years. Rates currently being paid on Treasury Bonds
are used as the index rate on some ARM's. |
| U.S. Treasury Note |
| Intermediate term securities issued with 2,3,5,
and 10 year maturities. Rates currently being paid on
Treasury Notes are used as the index rate on some ARM's. |
| Unavoidable Cause |
| An
unpreventable happening such as death, illness, papers lost, etc.
that happens even with reasonable care and prudence. |
| Underlying Financing |
| A prior mortgage or deed of trust on a land
contract, mortgage, etc. on the same property. |
| Underwriting |
| The process of evaluating a loan application to
determine the risk involved for the lender. Underwriting involves an
analysis of the borrower's credit worthiness and the quality of the
property itself. |
| Undisclosed Principal |
| One whose
identity, in a certain transaction, is not revealed by an agent. |
| Unencumbered Property |
| A
property that is free and clear of debts or liens, such as a house
without a mortgage. |
| Uniform Residential Loan Application (1003) |
| A standardized loan application used for loan
applications by all lenders. |
| Uniform Settlement Statement |
| Standard HUD Form 1 that is required to be
given to the borrower, lender, and seller at or prior to
settlement. Includes all costs and fees associated with
financing, and all funds borrowed, received from and paid to each
principal in the transaction. |
| Unilateral Contract |
| When one
party makes a promise, and the other party, who made no reciprocal
promise, may still be obligated by law or be given consideration. |
| Unity of Possession |
| The joint
tenants, in a joint tenancy situation, have equal rights to
possession. |
| Unmarketable Title |
| Any title
that contains defects that would allow a person to be released from
the obligation of the purchase. |
| Unrecorded Instrument |
| A deed,
mortgage, etc., which is not recorded in the county recorder’s
office and would therefore not be protected under the statutes
regarding recording. |
| Unsecured-loan |
| A loan
that is not backed by collateral. |
| Useful Life |
| An appraisal that was done for a property that
is for sale must state the true economic value of the structure in
terms of years of use to the owner. For purposes of taxation, the
life set for depreciation. |
| Usury |
| An illegally high interest rate charged on a
loan. |
| Variable Rate Mortgage (VRM) |
| See "Adjustable Rate Mortgage." |
| Verification of Deposit (VOD) |
| An official document issued by the borrower's
financial institution that verifies the borrower's financial status
and account balances. |
| Verification of Employment (VOE) |
| A document signed by the borrower's employer
that verifies the borrower's position and salary. |
| Vested |
| Having
the right to use a portion of a fund such as an individual
retirement fund. |
| Veteran’s Administration (VA) Loan |
| A
government loan for qualifying veterans for owner occupied resident
properties, and administered by the Veterans Administration. |
| Voluntary Lien |
| A lien
placed on a property by the voluntary act of the owner, usually a
2nd or 3rd mortgage. |
| Waive |
| To
abandon or surrender a right, benefit, or claim. |
| Walk-through |
| The final tour of a home prior to the sale
closing, in which any defects are noted. |
| Warehouse Fee |
| A
lender's fee for temporarily holding a borrower's loan before it is
sold on the secondary market. |
| Warranty |
| A protection plan generally paid for by the
seller that protects the buyer against major repair expenses and
breakdowns. Warranties are assigned to specific items, usually major
appliances or systems on the property. |
| Warranty Deed |
| A type of deed that conveys fee title to real
property. |
| Wholesale Lender |
| A Lender who works only with Licensed Mortgage
Brokers and takes completed loan packages and underwrites them. They
offer mortgage brokers discounted pricing in return for the up-front
work done by the mortgage broker in preparing and bringing the loan
to them for underwriting. |
| Wholesale Lenders |
| Lenders
who work only with mortgage brokers and takes completed loan
packages and underwrites them. They offer mortgage brokers
discounted pricing in return for the up-front work done by the
mortgage broker. |
| Wild Interest |
| Recorded
interest that cannot be traced in the chain of title. This can occur
when an incorrect legal description appears on a document. Also may
occur when a woman who changes her name through marriage after
acquiring property, and sells the property using her married name
only. |
| Workout |
| An
attempt to resolve a problematic situation, such as a bad loan. |
| Wraparound Mortgage |
| A mortgage that includes the remaining balance
on an existing first mortgage plus an additional amount requested by
the mortgagor. Full payments on both mortgages are made to the
wraparound mortgagee, who then forwards the payments on the first
mortgage to the first mortgagee. |
| Writ of Sequestration |
| Taking
custody of one's property, real or personal, to force compliance
with a court order. |
| Yield |
| The ratio
of investment income to the total amount invested over a certian
period of time. |
| Yield Maintenance |
| A
prepayment premium that allows investors to obtain the same yield as
if the borrower made all scheduled mortgage payments until maturity.
|
| Yield to Average Life |
| Yield
calculation used, instead of “Yield to Maturity” or “Yield to Call,”
where books are retired systematically during the life of the issue,
as in the case of a Sinking Fund, with contractual requirements. |
| Yield to Maturity (YTM) |
| A
calculation used to determine the rate of return an investor will
receive on a bond if it is held to its maturity date. YTM is
considered a long-term bond yield expressed as an annual rate. It
takes into account purchase price, redemption value, time to
maturity, coupon interest rate, and time between interest payments.
|
| Zero Lot Line |
| The
construction of a building on any of the boundary lines of a lot. |
| Zoning |
| The
classification of allowable land use by a government. |
You can return to the Star Mortgage website to order additonal reports or submit an application by using any of the buttons on this page. If you have any questions or would like to speak to a Licensed Mortgage Broker, simply call us anytime at 813.882.8878 .
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