Mortgage Terms Defined
- A congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds.
- Quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers.
- A government agency, division of the Department of Housing and Urban Development (HUD), that insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans.
- The central bank of the United States and major regulatory agency for many commercial banks.
- Absolute ownership of a property.
- A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage.
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- The primary lien against a property.
- The monthly payment due on a mortgage loan including payment of both principal and interest.
- A mortgage interest that are fixed throughout the entire term of the loan.
- A form of hazard insurance required by lenders to cover properties in a flood zone.
- The minimum rate of interest payable on an adjustable-rate mortgage.
- Grace period given when a lender postpones foreclosure to give a borrower time to catch up on overdue payments.
- Legal process by which the lender forces the sale of a property because the borrower has not met the mortgage terms.
- See Federal Home Loan Corporation.
- 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.
- A government-owned corporation that assumed responsibility for the special assistance loan program formerly administered by Fannie Mae. Popularly known as Ginnie Mae.
- A period of time during which a loan payment may be made after its due date without incurring a late penalty.
- Before taxes.
- Total income before taxes and expenses are deducted.
- A fixed-rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage.
- To assume liability for another’s debts in the event of a default.
- A mortgage that is guaranteed by a third party.
- Protects the insured against loss due to fire or other natural disaster in exchange for a premium paid to the insurer.