A
Amortization
Regularly scheduled installment payments calculated to pay off your debt by a specific date. Amortization affects housing expense budgets more than anything else, so it pays to make certain your payments are calculated correctly and your payment obligations can be met.
Appraisal
A written estimate of the current market value of a property prepared by a licensed appraiser.
Approval
Conditional loan approval is based on information provided to NextHome Mortgage Corp. verbally and as set forth on the application. The conditional approval is subject to the verification and/or receipt of additional information. Once all closing conditions and lender requirements are satisfied, the loan will receive final approval.
APR (Annual Percentage Rate)
The annual percentage rate is a measure of the cost of credit on a yearly basis. The APR allows you to compare various kinds of mortgages based on the yearly cost of each loan, including the stated interest rate, points paid and certain prepaid finance charges.
ARM (Adjustable-Rate Mortgage)
An adjustable rate mortgage has an initial rate that adjusts periodically, in accordance with a current interest rate index (a predetermined margin is added to the index to compute the interest rate). Payments can be low if interest rates are low and will increase as rates rise. CAPS govern the limit an ARM loan's rate can adjust to at one time and over the life of the loan. Generally, ARMs have lower rates than fixed-rate mortgages and are easier to qualify for - but because they're based on changing interest rates, your payment amounts can be unpredictable.
Arm's-Length Transaction
A transaction negotiated by unrelated parties, each acting in his/her own best interest.
Assumable Mortgage
A mortgage contract that can be assumed or “taken over” by the buyer from the seller when a home is sold. If a mortgage is assumed, the buyer of the property takes over the seller’s existing mortgage, but the seller is still liable to the lender unless the seller is released from obligation.
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B
Balloon Mortgage
A mortgage that has level monthly payments over a stated term but which provides for a lump-sum payment to be due at the end of a previously specified time (e.g., five and seven- year balloon mortgages, where the payment is fixed for 5 or 7 years, then the remaining balance becomes due and payable at the end of the term).
Bankruptcy
A legal procedure petitioned either by the debtor (voluntary) or by creditors (involuntary) when the debtor is unable to make his or her payments, in which the court distributes the debtor's property to creditors to fulfill repayment of debts.
Base Income
The borrower's gross salary. If the borrower is self-employed, it is the net income - that is, your income after expenses.
Bi-Weekly Mortgage Loans
Mortgage payments are usually made on a monthly basis by borrowers. Instead of 12 monthly payments, bi-weekly mortgage payments are made every 2 weeks, generally in the amount equal to one-half of the monthly mortgage payment. Since there are 52 weeks in a year, a borrower making bi-weekly mortgage payments will make 26 bi-weekly payments in a year. The result is 13 payments a year versus 12 with a traditional monthly payment. Assume your monthly payment is $1,000. A bi-weekly mortgage payment would be $500 in this example and result in annual payments totaling $13,000 versus $12,000 with a monthly payment. The result is a faster loan payoff and thousands of dollars of interest savings over the life of the loan.
Bridge Loan
Also known as a “swing loan”, it is a short-term loan bridging the period between the closing date of a new home purchase and the closing date of a prior home sale, allowing loan proceeds to be used for closing on a new home.
Buy Down
An arrangement where a party pays a lender an up-front fee, or premium, to reduce ("buy down") a borrower's interest rate on a loan for a temporary time period, usually one to three years. By paying fees up-front to reduce a loan's interest rate, the borrower's monthly payments will be lower. The buy down arrangement is usually expressed as two numbers. For example, in a 2/1 buy down, the '2' represents a 2 percent interest rate buy down the first year and the '1' represents a 1 percent interest rate buy down the second year; in the third year of the loan the interest rate would revert to the straight note rate.
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C
Caps
Consumer safeguards on adjustable-rate mortgages that limit the increase or decrease of interest rate changes per year or during the life of the loan, and/or a limit on the amount that monthly payments can change. These safeguards protect you as interest rates rise.
Cash Reserves
The amount of liquid assets the borrower has remaining after the mortgage loan transaction is completed.
Cash-Out Refinance
An alternative way to borrow cash without taking out a home equity loan. The borrower refinances the home with a new mortgage for additional funds in excess of the amount needed to repay the closing costs, points, subordinate liens and the existing mortgage. Provides cash proceeds to the borrower that can be used to pay off non-mortgage debt, including college tuition, home improvements or any other non-mortgage expense.
Closing
The transfer of ownership from the buyer to the seller; completion of a financial transaction; signing mortgage documents, disbursing funds from the buyer and lender to the seller.
Closing Costs
Money paid by borrowers and sellers to affect the closing of a loan. These costs usually include such items as origination fees, discount fees, title search and title insurance, survey fees, attorney's fees, appraisal fees, credit report fees, prepaid items such as taxes and insurance. Closing costs generally run from 3 percent to 6 percent of the loan amount. Most lenders generally quote a "good faith estimate" of closing costs - but it's only an estimate.
Closing Date
The date on which a loan transaction is completed, sale of the property is finalized and the property ownership is transferred.
CLTV (Combined loan-to-value)
The CLTV is the ratio of the total mortgage liens against the subject property to the lesser of either the appraised value or the sales price.
Co-borrower
A person who is jointly and equally liable for repayment of the mortgage obligation. A co-borrower completes an application and submits all documentation and may or may not be on the security instrument.
Collateral
An object that a borrower offers as security to a creditor to guarantee repayment of a loan. In the case of home loans, collateral is a piece of real property (land and/or a building). Borrowers are bound to repay loans (plus interest) to their lender(s). If they fail to do so - or default - the lender can take possession of, or foreclose on, the collateral.
Conforming Loans
Loans that conform to Federal Home Loan Mortgage Corporation (FHLMC) and Fannie Mae (FNMA) requirement(s) and do not exceed the maximum loan amount and loan-to-value (LTV) limitations established by FNMA or FHLMC.
Construction Perm
Construction-to-permanent financing involves the granting of a long-term mortgage for the purpose of replacing interim construction financing that the borrower obtained to fund the construction of a new residence. The transaction may be considered to be a purchase or a refinance.
Convertible Option
A type of adjustable rate mortgage that includes an option for the mortgagor to change the mortgage to a fixed-rate mortgage at specified intervals during a predetermined time.
Credit Bureau Company
An organization that prepares credit reports used by credit grantors to determine the creditworthiness of an individual.
Credit Bureau Repository
An organization that compiles credit history data directly from lenders and creditors to build in-file credit reports for individuals.
Credit Report
A report covering an individual's credit history and current credit standing. This report is a very important measure used in the loan approval process, so maintaining a good credit rating should be a high priority for those who plan to buy a house.
Credit Score
A single numerical value that is based on an individual’s credit history that ranks a borrower’s credit risk at a certain given point in time.
Current Index Value
The most recently published value of the index that is used to adjust an indexed ARM’s interest rate.
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D
Debt-to-Income Ratio (DTI)
The ratio of the borrower's total monthly obligations - including housing expenses and recurring debts - to monthly income. It's used to determine your capacity to repay the mortgage and all other debts. Your debt-to-income ratio is a crucial calculation in determining the loan amount for which you can qualify. It represents your qualifying ratio - that is, your financial capacity to assume and repay debt.
Deed of Trust
A legal instrument used instead of a mortgage in certain states. This document allows legal title to a real property to be vested in trustees to secure payment of a note.
Default
Failure to meet the legal obligations in a loan contract by not paying monthly mortgage payments.
Delinquency
Generally refers to a loan with a past-due payment of more than 30 days.
Discount Points
Payable to the lender by the borrower or seller to decrease the interest rate. One point is equal to 1 percent of the loan amount.
Down Payment
Money paid by the borrower that is the difference between the purchase price of the property and the amount of the mortgage.
Due-On-Sale Clause
A provision on a loan contract or mortgage stating that if the property is sold, the balance of the loan must be repaid.
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E
Earnest Money
Money the buyer pays to the seller to solidify an offer to purchase a property. The money is applied to the purchase price of the house.
Equity
The value of a homeowner's unencumbered interest on real estate. Equity is computed by subtracting the total of the unpaid mortgage balance and any outstanding liens or other debts against the property from the property's fair market value. A homeowner's equity increases as he or she pays off his or her mortgage and/or as the property appreciates in value.
Escrow
Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specific event, after which the funds are released to a designated individual. The money is held in a trust fund, provided by the lender for the buyer. Such funds should be adequate to cover yearly anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums, and special assessments.
Escrow Account
An account in which a portion of the monthly payment is held by the lender on the borrower's behalf for the payment of future taxes, mortgage and hazard insurance, special assessments insurance, and other on-going payments as they occur. Also called an Impound Account. Impound/escrow accounts allow one to make fractional payments for these charges as part of the monthly mortgage payments. The funds are gradually collected in the escrow account, then paid out in full when the charges become due.
Escrow Closing
The deposit of funds or documents with an attorney or escrow agent to be disbursed upon closing of the real estate transaction.
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F
Fannie Mae
One of two public agencies created by Congress (see Freddie Mac) operating under a Federal charter that works to ensure the availability and affordability of mortgage funds by purchasing mortgage loans that lend directly to consumers. Purchases conventional mortgages in the secondary mortgage market from insured financial institutions and qualified mortgage bankers.
FHA (Federal Housing Administration)
A government mortgage insurance agency that sets requirements for underwriting mortgages and insures residential mortgages (AKA FHA Loans) made by private lenders against loss from default of borrowers on residential properties.
First Mortgage
A mortgage that is the primary lien against a property.
Fixed-Rate Mortgage
A fixed rate mortgage is a mortgage set up with one fixed interest rate for the entire term of the mortgage, so the borrower pays the same monthly payments (principal and interest) for the life of the loan. This offers predictability, an advantage for borrowers on fixed or limited incomes.
Foreclosure
The legal process by which a borrower in default under a mortgage or deed of trust loses all rights to, and interest in, the mortgaged property. This usually involves a forced sale of the property at a public auction, with the proceeds of the sale being applied to the mortgage debt. Foreclosure can result if mortgage payments are not made on time.
Freddie Mac (Federal Home Loan Mortgage Corporation)
One of two public agencies created by Congress (see Fannie Mae) operating under a Federal charter that works to ensure the availability and affordability of mortgage funds by purchasing mortgage loans that lend directly to consumers. Purchases conventional mortgages in the secondary mortgage market from insured financial institutions and qualified mortgage bankers.
Front-end Ratio
The ratio of house payment(s) - including insurance, PMI, and property taxes – to gross income.
Fully Indexed Interest Rate
A sum of the current index value plus the margin on an ARM.
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G
Gift Funds
Funds donated on behalf of the borrower from certain eligible sources to assist the borrower in meeting closing costs. Generally, eligible sources are relatives, churches, municipalities, or nonprofit organizations.
Good Faith Estimate (GFE)
A form required by the Real Estate Settlement and Procedures ACT (RESPA) that lists settlement charges the borrower is required to pay at closing; the lender is obligated to provide the borrower the chargers within three business days of receiving the loan amount being borrowed.
Ginnie Mae
The Government Nation Mortgage Association is a federal agency guaranteeing mortgage securities that are issued against FHA and VA mortgage pools.
Gross Monthly Income
The total amount a borrower earns each month prior to any withholdings or deductions.
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H
Hazard or Homeowners Insurance
Insurance that is required by the lender, purchased by the borrower and protecting the property owner against loss from fire and other hazards; insurance that combines hazard insurance and personal liability.
HELOC (Home Equity Line of Credit)
A real estate loan, usually in a second lien position, allowing a borrower to withdraw equity in real estate owned with specific limitations. This type of loan allows the home owner to borrow cash against the line of credit to use when needed.
HOA (Homeowners' Association)
A nonprofit association whose directors and officers are elected by the unit owners of a condominium or Planned Unit Development (PUD) project. Primary responsibilities are to manage the common areas, expenses, and services of the condominium or PUD project.
Home Equity Loan
A loan in which the lender acquires an interest in a borrower’s home up to the amount of this loan, giving the borrower the funds he or she needs for home maintenance, debt consolidation, or other expenses.
Housing Debt-to-Income or Housing Expense Ratio
The sum of all monthly housing mortgage expenses, such as principal, interest, taxes and insurance (PITI), homeowners' dues, private mortgage insurance, and any special assessments, as a percentage of the borrower's gross qualifying income.
HUD1 Form
A form received by both the borrower and the seller at closing, detailing all the payments and receipts among the parties involved in the real estate transactions; also known as closing costs or settlement sheets.
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I
Income-to-Expenses Ratio
The ratio of your monthly income (gross unless self-employed - in which case net income) to monthly expenses. It is used to determine one's ability to repay debt and thus is a crucial consideration in determining both if a person can qualify to borrow and the maximum loan amount.
Indexed ARM
An ARM with an interest rate that adjusts mechanically based on changes in an interest rate index.
Installment Debt
Borrowed money that is repaid in successive payments, usually at regular intervals; the monthly debt service is sometimes excluded for debt-to-income calculator purposes if 10 or fewer payments remain to be made.
Interest Only Mortgage
Interest only mortgages are mortgages with a monthly mortgage payment that consists of nothing but interest for a certain period of time, causing the loan balance to remain unchanged.
Interest Rate
An annual percentage that the borrower is charged on a loan.
Investment Property
A non-owner occupied residential property that the owner rents to tenants which generates income.
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J
Jumbo Mortgage
A mortgage that is larger than the maximum eligible for purchase by both Fannie Mae and Freddie Mac. Jumbo mortgages are called non-conforming.
Junior Lien
Any lien that is subordinate or subsequent to the claims of a prior lien. A second mortgage is a junior lien.
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K
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L
Mortgage insurance is sometimes required for borrowers who are making a down payment of less than 20% of a homes purchase price. This insurance, if required, can be paid on behalf of the borrower by the lender. The lender then charges the borrower a slightly higher interest rate for the term of the loan. This may provide a lower monthly payment to the borrower that traditional Mortgage Insurance paid directly by the borrower and a possible tax deduction for the interest expense on the loan.
Lien
The right to claim a borrower’s property, by the lender, in the event the borrower defaults. If there is more than one lien, the claim on the first lien will be satisfied, followed by the second, and so on.
Limited Cash-out Loan
For Fannie Mae, a refinance transaction in which the mortgage amount is limited to the sum of the unpaid principal balance of the existing first mortgage, closing costs, prepaid items, points, and the amount required to satisfy any subordinate mortgage liens that were used in whole to acquire the subject property, and other funds for the Borrower’s use(as long as the amount does not represent more than the lesser of 2% of the amount of the new refinance mortgage or $2,000).
Loan
The amount a borrower commits to repaying as stated in the mortgage contract.
Loan Application
A document required by a lender before issuing a loan commitment. It includes information such as the name of the borrower, terms and amount of loan, and details of the property being mortgaged. It's the first and foremost measure of one's ability to qualify for a loan, so it's crucial that one submit complete and accurate information.
Loan Commitment
An agreement to lend money, usually for a specific amount to be repaid by a specific date. This commitment is contingent upon the accuracy of the information submitted by the applicant.
Loan-To-Value Ratio (LTV)
Relationship, expressed as a percentage, between the loan amount and the property’s value.
Lock-in Rate
At the time of the loan application or later, the borrower may choose to “lock in” a current rate. The lender and borrower are both committed to the started terms. The rate is locked for a specific period of time and the loan must close within that specified time period.
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M
Margin
The percentage added to an index rate to create the mortgage interest rate charged to a borrower for an adjustable-rate mortgage (ARM).
Market Value
The estimated value of a property which is equal to a seller's lowest acceptable sale price and a buyer's highest acceptable purchase price.
Maturity
The date when the loan is due to be repaid in full.
Mortgage
A written document of lien on a property that is taken by a lender as security for the repayment of a loan; loan to finance the purchase of real estate where the borrower pledges the property as security to the lender- also referred to as a Deed of Trust, Trust Deed, or Security Instrument.
Mortgage Insurance (MI)
Insurance against loss in the event a borrower defaults on a mortgage payment, provided to a mortgage lender. This insurance allows lenders to make loans with lower down payments (loan-to-value ratios above 80 percent - that is, when a down payment is less than 20 percent of the total selling price of the property).
Mortgagee
The lender or the institution that holds a borrower’s loan.
Mortgagor
The borrower.
My Community Mortgage
The My Community Mortgage is a loan program sponsored by Fannie Mae to assist moderate income families, public service employees and disabled people in purchasing or refinancing a home. The My Community Mortgage allows up to 100% financing with little or no funds required at closing. The My Community Mortgage generally offers a low interest rate that is fixed for 30 or 40 years.
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N
Negative Amortization Cap
A gradual increase in the mortgage debt caused by unpaid interest that is added to the mortgage principal because the payment is not sufficient to cover the total amount of interest due when the payment is made.
No Down Payment Mortgage
Generally a mortgage lender will require a down payment on the purchase of a home. The down payment amount can be in any amount, but generally between 5 and 20% of the purchase price is common. The remaining amount of the purchase price is provided by the lender in a mortgage loan. In some cases, home buyers can qualify for a No Down Payment Mortgage and the lender will finance 100% of the purchase price of the home. To qualify for these types of loans, borrowers must have stability of income, a savings history and acceptable credit scores. Of course an independent appraisal must support the purchase price of the home too.
Nonconforming Loans
Loans that do not conform to traditional Fannie Mae or Freddie Mac conditions. Generally, loans above $417,000 (for all states except Alaska and Hawaii) are nonconforming loans. They are also known as Jumbo loans.
Note
A legal instrument in which a borrower promises to repay a loan under a specific set of terms and conditions (e.g., interest rate or late charge information).
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O
Origination Fee
A fee charged by a lender to a borrower for the costs of obtaining and processing a loan.
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P
Payback Period
The amount of time expressed in months or years, it takes to pay back the fees for obtaining a loan on a property.
Piggyback
A second mortgage obtained by a borrower in conjunction with a first mortgage as an alternative to a 20 percent down payment. This structure of a piggyback loan is used to eliminate the need for PMI.
PITI (Principal, Interest, Taxes, and Insurance)
Principal, interest, taxes, and insurance - a term used to refer to the components of a borrower’s monthly mortgage payments.
PMI (Private Mortgage Insurance)
Insurance coverage a lender requires the borrower to obtain to protect the lender against loss in the event of a mortgage default. PMI is mandatory for higher loan-to-value mortgages, generally those above 80 percent LTV (i.e. the loan amount is 80 percent or more of the property's appraised value).
Points
A prepaid finance charge, usually expressed a percentage of the loan amount, assessed by the lender at closing. Paying points will generally decrease the loan's interest rate. One point equals 1 percent of the loan amount. Points are also referred to as Discount Points.
Pre-approval
Mortgage pre-approval is a preliminary analysis by a lender of the amount a buyer may borrow before a house is purchased. The buyer must still apply and be approved for the mortgage. Pre-approval provides the buyer with a preliminary estimate of how much they can borrow and allows them to begin negotiations to purchase a home. Even if the buyer is not granted a pre-approval, it is a helpful step to take, as it illuminates existing problems in securing a loan and allows the buyer to take steps toward resolving them.
Prepaid Items
Items that generally must be paid for at the time of closing and are generally recurring charges. Prepaid items may include taxes; first-year premiums for hazard, flood, and mortgage insurance; prorated interest, any special assessments that must be prepaid (e.g., water/sewer connection); and escrow account for any of the above.
Prepayment Penalty
An amount charged by the lender if the borrower pays off a loan before its maturity date.
Prequalification
Providing financial information (credit ratings, employment status and income, and outstanding debts) to a lender in order to calculate a suitable mortgage for the buyer. Prequalification grants no legal rights, but is helpful in showing how large a mortgage a borrower can make and ultimately how much the borrower can spend on a home.
Principal
The remaining balance owed on a loan, not including interest.
Property Value
The amount a piece of real property is worth - either the appraised amount or the purchase amount, whichever is lower.
PUD (Planned Unit Development)
A real estate project in which each unit owner has title to a residential lot and a nonexclusive easement on the common areas of the project.
Purchase Money Mortgage
A mortgage used to purchase real property where the title for the real property is conveyed from one individual to another.
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Q
Qualifying Ratios
The percentage of Payment-to-Income (P/I) - also called the Housing Qualifying Ratio and Debt-to-Income (D/I) - also called Back-End Qualifying Ratio) that is used to measure the borrower's capacity to repay the mortgage debt as if the mortgage had been made.
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R
Rate and Term Refinance
A refinance of any mortgage in which the new mortgage amount is limited to the unpaid principal balance of the existing first mortgage plus any closing costs.
Rate-lock Agreement
A rate lock is an agreement between NextHome Mortgage Corp. and a borrower that specifies a mortgage loan program, interest rate, discount points with an expiration date.
Recording Fees
Fees charged by a county recorder's office to record a mortgage or deed of trust on the public record.
Refinance
The process in which a borrower replaces the original mortgage loan with a new one to take advantage of lower interest rates or better terms or to obtain cash via their home equity. Refinance is an alternative to a second mortgage, which involves the same process as refinancing, but adds a junior lien on the property.
RESPA
Real Estate Settlement Procedures Act; designed to protect home buyers and owners shopping for settlement services by mandating disclosures and prohibiting kickbacks and referral fees.
Revolving Debt
A debt that does not have a fixed payment, although repayment is usually a percentage of the outstanding balance and made at regular intervals; the most common forms of revolving debt are credit cards issued by banks and department stores.
Right of Rescission
The right for refinancing borrowers to cancel a loan at no cost to themselves within 3 days of closing.
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S
Secondary Markets
A market through which mortgage loans and mortgage-backed securities are bought and sold.
Second Mortgage
A mortgage that is in a second position behind (or subordinate to) the original first mortgage; see also Junior Lien. A second mortgage is a good alternative to refinancing if a borrower has an original first mortgage loan with a low interest rate. A second mortgage will give the borrower a lump sum of funds to use as needed. The qualification process and debt-to-income ratio requirement are the same as refinancing.
Self-Employed Borrower
A borrower whose income is derived from a business source in which he or she has an ownership interest of 25 percent or more.
Servicing
All the operations carried out by the lender to keep a loan in good standing, including payment of taxes and insurance. Servicing involves the collecting of monthly mortgage payments from the borrower and remitting those amount timely to the mortgage holder and all other parties for which funds are remitted by the borrower.
SFR (Single-Family Residence)
A structure intended to house one family.
Subordinate Financing
Secondary financing secured by a lien that is junior to the first mortgage or senior claim - for example, a second mortgage.
Supplemental Income
Income derived from sources other than wages and earnings,such as interest/dividends, capital gains, and rental properties; these sources require tax returns to support the qualifying income.
Survey
A report prepared by a registered land survey professional that shows the precise location and measurements of the property.
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T
Tax Service Fee
A fee that is charged by lenders to cover the cost of paying taxes on the borrower’s property when they come due or for verifying that a payment has been made.
Temporary Buydown
A loan on which the interest rate has been "bought down" for a temporary period of time at the beginning of the loan by escrowing funds at the time of closing, which will be applied to the total monthly mortgage payment as each becomes due.
Term
The period of time, usually measured in years, used to calculate a monthly mortgage payment.
Title
A legal document also referred to as a “deed” that proves property ownership.
Title Insurance
An insurance policy, issued by a licensed insurance company or their agent, that insures a home buyer against any errors made in the title search and defects in the title that were not disclosed in the title work or abstract.
Title Search
A process providing proof of legal ownership of a property and any liens of record by researching county records - usually performed by a title company.
Townhouse
An architectural type of construction; a row house on a small lot that has exterior limits common to other similar units; title to the unit and its lot is vested in the individual owner with a fractional interest in common areas.
Truth in Lending
A federal law requiring lenders to disclose the Annual Percentage Rate (APR), finance charges, payment schedule, and other disclosures within three business days after the receipt of a loan application on certain types of loan transactions.
Two-to-Four Family Properties
A structure that provides dwelling units for two, three, or four families, although ownership is evidenced by a single deed.
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U
Underwriter
An analyst who reviews the supportive documentation to determine the risk associated with the loan request. The person who gives final loan approval.
Underwriting
Evaluating a loan application, through examining data about the borrower’s property, creditworthiness, ability to repay the loan and other transactions, to determine the risk involved to the lender.
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V
VA (Veterans Administration)
A government agency designed to encourage mortgage lenders to offer long-term, low-down-payment financing to eligible veterans by partially guaranteeing the lender against loss from default.
VA Loan
A long-term, no-down-payment or low-down-payment loan guaranteed by the Department of Veterans Affairs. Individuals usually qualify by proof of military service.
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W
Walkthrough
A clause allowing a buyer to examine the property they are purchasing at a specified time immediately before the closing of the sale.
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X
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Y
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Z
Zero Point Option
An option that allows the borrower to not pay the points at closing, but rather the borrower is charged a slightly higher loan interest rate. This option is used to reduce the amount of funds the borrower is required to pay at closing.
Zoning
The creation of districts by local governments in which specific types of property uses are authorized (e.g., commercial, industrial, residential, high density, mixed use).
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