Mortgage Terms Defined
- The amount paid by a mortgagor for mortgage insurance.
- A type of term life insurance In the event that the borrower dies while the policy is in force, the debt is automatically paid by insurance proceeds.
- A loan for which real estate serves as collateral to provide for repayment in case of default.
- See Note.
- The lender in a mortgage loan transaction.
- The borrower in a mortgage agreement.
- Amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost that isn't covered is added to the unpaid principal balance.(...)
- After taxes.
- Gross income minus estimated federal income tax.
- The value of all of a person's assets, including cash.
- A statement in a mortgage contract forbidding the assumption of the mortgage by another borrower without the prior approval of the lender.
- A conventional loan that cannot be sold to Fannie Mae or Freddie Mac. Often these loans are larger than conforming loan amounts.
- Debts, such as taxes and student loans that cannot be discharged during a bankruptcy liquidation.
- An asset that cannot easily be converted into cash.
- A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
- Written notice to a borrower that a default has occurred and that legal action may be taken.
- A fee paid to a lender for processing a loan application. The origination fee is stated in the form of points. One point is 1 percent of the mortgage amount.
- A property purchase transaction in which the party selling the property provides all or part of the financing.
- Limit on the amount by which a borrower’s ARM payments may increase, regardless of rise in interest rates. This may result in negative amortization.
- Dates upon which the payment is subject to change. Products featuring negative amortization typically will include a payment change date which differs from the interest rate change date in frequency.
- Interest calculated per day. Depending on the day of the month that the loan closes, you will have to pay interest from the closing date through the end of the month.
- A limit on the amount that payments can increase or decrease during any one adjustment period.
- 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.
- A long-term mortgage of 10 or more years.