Mortgage Terms Defined
- 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.
- Money paid to an agent for entering the sale of a property into the public records.
- Paying off one loan with the proceeds from a new loan using the same property as security.
- Legal process by which the lender forces the sale of the property because the borrower has not met the mortgage terms.
- The cancellation of a contract, permitted by law within three days of signing a mortgage not used to purchase a home.
- See Escrow, Impound.
- 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.
- A contract signed by buyer and seller stating the terms and conditions under which the property will be sold.
- The payment of a debt which satisfies an obligation.
- A subordinate mortgage made in addition to the first.
- Where existing mortgages are bought and sold.
- The property that will be pledged as collateral for a loan.
- An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage. See Owner Financing.
- Market conditions that favor sellers. With more buyers than sellers in a market, sellers have greater negotiating power as demand exceeds supply.
- An organization that collects principle and interest payments from borrowers and manages borrowers’ escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
- Closing - A meeting between buyer, seller and lender (and their agents) where property and funds legally change hands.
- Interest that is computed only on the principal balance.
- The method used to determine the monthly payment required to repay the remaining balance of a mortgage in substantially equal installments over the remaining term of the mortgage at the current interest rate.
- A pre-determined rate of interest that will be applied to the loan until the date of the first interest rate change.
- A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan
- Alternative financing option for low and moderate income borrowers that also includes a down payment and a first mortgage, with funds for the second mortgage provided by city, county or state housing agencies, foundations or non-profit corporations. Payment on the second mortgage is often(...)
- A measurement of land. Prepared by a licensed surveyor, showing a property’s boundaries, elevations, improvements and relationship to surrounding tracts.
- Value added to the property as a result of improvements made by an owner.
- Money paid to and held by a lender for annual tax payments- See Impound and Escrow.