Mortgage Glossary

Welcome to our comprehensive Mortgage Glossary. Whether you’re a first-time homebuyer or a seasoned investor, understanding mortgage terminology is crucial. This guide provides clear definitions for common and essential terms you’ll encounter in the mortgage world.

A

  • Amortization
    The process of paying off a loan through scheduled payments over time, which includes both principal and interest.
  • Annual Percentage Rate (APR)
    The annual cost of a loan, including interest and fees, expressed as a percentage.
  • Adjustable-Rate Mortgage (ARM)
    A mortgage with an interest rate that changes periodically based on market conditions.
  • Assumable Mortgage
    A mortgage that can be transferred from the current borrower to a new borrower.
  • Accrued Interest
    Interest that has accumulated on a loan but has not yet been paid.
  • Amortization Schedule
    A table detailing each mortgage payment, showing the split between interest and principal over time.
  • Affordability
    The ability of a borrower to comfortably make mortgage payments based on their income and expenses.
  • Alternative Documentation
    Non-traditional forms of documentation used to verify a borrower’s income, such as bank statements or pay stubs.
  • Agreement of Sale
    A legally binding contract between a buyer and seller outlining the terms of a property sale.
  • Annual Escrow Analysis
    A review performed annually to determine if escrow payments are sufficient to cover taxes and insurance.
  • Appraisal
    An assessment of a property’s value conducted by a licensed appraiser.
  • Application Fee
    A fee charged by lenders to process a mortgage application.
  • Assessed Value
    The value assigned to a property by a tax assessor for tax purposes.
  • Asset
    Any resource owned by an individual, such as cash, real estate, or investments, that can be used to secure a loan.
  • Affidavit
    A written statement confirmed by oath, used to verify information provided in a mortgage application.
  • Annual Interest Rate
    The interest rate applied to a mortgage over a year, used to calculate the monthly payment.
  • Adjustable-Rate Loan (ARL)
    A loan with an interest rate that varies periodically based on a specific index.
  • Amortization Term
    The length of time over which a loan is scheduled to be repaid.
  • Adjustable-Rate Mortgage Cap
    A limit on how much the interest rate on an ARM can increase at each adjustment period or over the life of the loan.
  • Authorized User
    A person added to a credit account by the primary cardholder, which can help with credit score improvements.

B

  • Balloon Payment
    A large final payment due at the end of a balloon mortgage term, typically after smaller periodic payments.
  • Broker
    An intermediary who helps borrowers find and apply for mortgages from lenders.
  • Borrower
    An individual or entity that takes out a loan and agrees to repay it according to the terms.
  • Balloon Mortgage
    A mortgage with periodic payments followed by a large final payment at the end of the term.
  • Buydown
    A financing technique where the borrower pays an upfront fee to lower the interest rate on their mortgage.
  • Beneficiary
    The person or entity designated to receive the benefits from a trust or insurance policy.
  • Bridge Loan
    A short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one.
  • Broker Fee
    A fee charged by a mortgage broker for their services, typically a percentage of the loan amount.
  • Bank Statement Loan
    A type of mortgage where income is verified through bank statements rather than traditional documentation.
  • Basic Mortgage Payment
    The portion of the mortgage payment that covers principal and interest, excluding taxes and insurance.
  • Borrowing Capacity
    The maximum amount a lender is willing to loan to a borrower based on their financial situation.
  • Base Rate
    The minimum interest rate set by a central bank or financial institution upon which other rates are based.
  • Balloon Loan
    A loan with small periodic payments followed by a large final payment.
  • Blended Rate
    A method of calculating interest that combines the current rate with a portion of the previous rate.
  • Borrower’s Affidavit
    A sworn statement made by the borrower affirming the accuracy of the information provided in the mortgage application.
  • Bond
    A fixed income instrument representing a loan made by an investor to a borrower, usually a corporation or government.
  • Bankruptcy
    A legal process through which individuals or businesses unable to repay their debts can seek relief.
  • Benefit Statement
    A document showing the benefits and terms of a mortgage or loan.
  • Bridge Financing
    Temporary financing used to cover the period between acquiring a new property and selling an old one.
  • Borrower Credit Report
    A detailed report of the borrower’s credit history used to assess their creditworthiness.

C

  • Closing Costs
    Fees and expenses incurred during the finalization of a mortgage, including appraisal, title insurance, and attorney fees.
  • Collateral
    An asset pledged by a borrower to secure a loan, which can be seized if the borrower defaults.
  • Conventional Loan
    A mortgage not insured or guaranteed by a government agency, typically requiring higher credit scores and down payments.
  • Credit Score
    A numerical representation of a borrower’s creditworthiness, based on their credit history and financial behavior.
  • Conditional Approval
    A preliminary approval for a mortgage that is contingent upon meeting certain requirements or conditions.
  • Conforming Loan
    A mortgage that meets the guidelines set by Fannie Mae or Freddie Mac for purchase or guarantee.
  • Closing Disclosure
    A document provided to the borrower before closing that outlines the final terms and costs of the mortgage.
  • Debt-to-Income Ratio (DTI)
    A ratio that compares a borrower’s monthly debt payments to their monthly gross income, used to evaluate loan eligibility.
  • Down Payment
    The portion of the purchase price paid upfront by the buyer, reducing the amount financed through a mortgage.
  • Credit History
    A record of an individual’s borrowing and repayment activities used to determine creditworthiness.
  • Condo Mortgage
    A mortgage specifically designed for the purchase of a condominium unit.
  • Convertible Mortgage
    A mortgage that allows the borrower to convert from an adjustable-rate mortgage to a fixed-rate mortgage under certain conditions.
  • Capped Rate
    A limit on how much an adjustable-rate mortgage interest rate can increase during an adjustment period or over the loan’s term.
  • Certificate of Eligibility
    A document issued by the Department of Veterans Affairs (VA) verifying a borrower’s eligibility for a VA loan.
  • Credit Utilization Ratio
    The percentage of available credit being used by a borrower, affecting their credit score.
  • Chain of Title
    The history of ownership transfers of a property, used to establish clear ownership.
  • Commitment Letter
    A formal letter from a lender confirming that a mortgage loan has been approved under specified terms.
  • Contract for Deed
    An agreement where the seller finances the purchase of the property, and the buyer makes payments directly to the seller.
  • Certified Appraisal
    An appraisal conducted by a licensed appraiser that provides an official valuation of a property.
  • Capitalization Rate (Cap Rate)
    A metric used to evaluate the return on investment for income-producing properties, calculated as net operating income divided by the property value.

D

  • Default
    Failure to meet the terms of a mortgage agreement, such as missing payments, which can lead to foreclosure.
  • Down Payment
    The amount of money paid upfront towards the purchase of a home, reducing the amount financed through a mortgage.
  • Debt-to-Income Ratio (DTI)
    A measure comparing a borrower’s total monthly debt payments to their gross monthly income, used to determine loan affordability.
  • Deed
    A legal document that conveys ownership of a property from the seller to the buyer.
  • Document Preparation Fee
    A fee charged for preparing the legal documents required to finalize a mortgage.
  • Discount Points
    Fees paid upfront to lower the interest rate on a mortgage, with each point equal to 1% of the loan amount.
  • Debt Consolidation
    The process of combining multiple debts into a single loan with a potentially lower interest rate.
  • Down Payment Assistance
    Programs or grants that help borrowers with the upfront costs of purchasing a home.
  • Discharge of Mortgage
    The official release of a mortgage lien from the property once the loan is paid off.
  • Deferred Payment
    A payment arrangement that allows the borrower to postpone payments to a later date.
  • Default Risk
    The likelihood that a borrower will fail to meet their mortgage obligations.
  • Direct Lender
    A financial institution that provides loans directly to borrowers without using intermediaries.
  • Depreciation
    The reduction in the value of a property over time due to wear and tear or market conditions.
  • Due Diligence
    The research and investigation conducted before committing to a mortgage, including reviewing financial documents and property details.
  • Draw Period
    The time frame during which a borrower can access funds from a home equity line of credit (HELOC).
  • Documentary Evidence
    Written documentation provided to verify information, such as income or employment, during the mortgage application process.
  • Delinquency
    The status of a mortgage account when payments are overdue but not yet in default.
  • Deed-in-Lieu of Foreclosure
    An arrangement where the borrower voluntarily transfers property ownership to the lender to avoid foreclosure.
  • Default Judgment
    A court ruling in favor of the lender when a borrower fails to respond to a foreclosure lawsuit.
  • Debt Settlement
    A negotiation process where a borrower agrees to pay less than the full amount owed on a debt.

E

  • Equity
    The difference between a property’s market value and the amount owed on the mortgage.
  • Escrow
    An account where funds are held by a third party to pay property taxes and insurance on behalf of the borrower.
  • Earnest Money
    A deposit made by the buyer to show commitment to the purchase, which is applied to the down payment or closing costs.
  • Escrow Account
    An account used to hold funds for paying property taxes and insurance premiums as part of the mortgage agreement.
  • Early Repayment Penalty
    A fee charged for paying off a mortgage loan before its scheduled end date.
  • Equity Line of Credit
    A revolving credit line secured by the equity in a borrower’s home, allowing access to funds as needed.
  • Endorsement
    A signature on a financial document or check, indicating approval or authorization.
  • Estimated Closing Costs
    The anticipated fees and expenses associated with closing a mortgage transaction, provided by the lender in advance.
  • Escrow Analysis
    A periodic review of an escrow account to ensure it has sufficient funds to cover taxes and insurance.
  • Equity Loan
    A loan secured by the equity in a borrower’s property, often used for home improvements or debt consolidation.
  • Early Mortgage Payoff
    The act of paying off a mortgage before the end of its term, potentially saving on interest.
  • Existing Mortgage
    A mortgage that is already in place on a property, which may be refinanced or paid off.
  • Escrow Holdback
    A portion of the escrow funds retained until certain conditions, such as repairs, are completed.
  • Employment Verification
    The process of confirming a borrower’s employment status and income as part of the mortgage application.
  • Equity Share
    A financial arrangement where the lender or investor shares in the equity of the property, often in exchange for lower interest rates or down payments.
  • Exemption
    A provision allowing for the exclusion of certain items or income from calculations, such as property tax exemptions.
  • Earnings Statement
    Documentation showing an individual’s income, often used to verify earnings during the mortgage application process.
  • Estimated Property Value
    An approximation of a property’s market value, often provided by an appraiser or through comparative market analysis.
  • Extended Rate Lock
    An agreement to lock in an interest rate for a longer period than usual, often used in volatile market conditions.
  • Eligibility Requirements
    The criteria that a borrower must meet to qualify for a specific mortgage loan or program.

F

  • Fixed-Rate Mortgage
    A mortgage with an interest rate that remains constant throughout the loan term, providing stable monthly payments.
  • Foreclosure
    The legal process by which a lender takes possession of a property due to the borrower’s failure to make payments.
  • FHA Loan
    A mortgage insured by the Federal Housing Administration, designed to help lower-income and first-time homebuyers.
  • Funding Fee
    A one-time fee charged by the Department of Veterans Affairs for VA loans, designed to offset the cost of the program.
  • Fair Market Value
    The price a property would sell for on the open market under normal conditions.
  • First Mortgage
    The primary loan secured by a property, which takes precedence over other claims or liens.
  • Fixed-Term Loan
    A loan with a set repayment period, such as 15, 20, or 30 years, with consistent payments throughout.
  • Foreclosure Sale
    The auction or sale of a property that has been foreclosed upon, usually conducted by the lender.
  • Fannie Mae
    The Federal National Mortgage Association, a government-sponsored enterprise that buys and securitizes mortgages.
  • Freddie Mac
    The Federal Home Loan Mortgage Corporation, a government-sponsored enterprise that provides liquidity and stability to the mortgage market.
  • Full Doc Loan
    A mortgage loan that requires full documentation of the borrower’s income, assets, and credit history.
  • First-Time Homebuyer Program
    Special mortgage programs or grants designed to assist individuals purchasing their first home.
  • Fixed-Rate Period
    The time frame during which a mortgage’s interest rate remains fixed before potentially adjusting.
  • Foreclosure Prevention
    Strategies and programs designed to help borrowers avoid foreclosure, such as loan modifications or refinancing.
  • Federal Housing Finance Agency (FHFA)
    A U.S. government agency that regulates Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
  • Funding Requirements
    The conditions that must be met before a mortgage loan can be funded and disbursed.
  • Flat Fee
    A fixed charge for services, not based on the amount of the loan.
  • Freehold Property
    Property ownership where the owner holds the title to the land and buildings for an indefinite period.
  • Foreclosure Auction
    The public sale of a property that has been foreclosed upon, typically conducted by a court or auctioneer.
  • Financial Disclosure
    A document providing detailed information about a borrower’s financial status, including income, assets, and liabilities.

G

  • Good Faith Estimate (GFE)
    A document provided by lenders that outlines the estimated costs and fees associated with a mortgage loan.
  • Gross Income
    The total income earned by a borrower before taxes and deductions, used to assess mortgage affordability.
  • Government-Backed Loan
    A mortgage insured or guaranteed by a government agency, such as FHA, VA, or USDA loans.
  • Garnishment
    A legal process where a portion of a borrower’s wages is withheld to repay a debt.
  • Guaranteed Mortgage
    A loan that is backed by a government agency, providing assurance to lenders and potentially lower rates for borrowers.
  • Graduated Payment Mortgage
    A mortgage with payments that increase gradually over time, often used when a borrower expects higher future income.
  • Grace Period
    A specified time after a payment due date during which a borrower can make a payment without incurring a late fee.
  • Gross Debt Service Ratio (GDS)
    A measure of a borrower’s ability to manage mortgage payments, calculated as the percentage of gross income used for housing costs.
  • Gross Asset Value
    The total value of a borrower’s assets before any liabilities or debts are subtracted.
  • Guarantee Fee
    A fee paid for a government guarantee on a loan, often used for FHA, VA, or USDA loans.
  • Geographic Location
    The physical location of a property, which can affect its value and mortgage terms.
  • General Warranty Deed
    A deed providing the highest level of protection to the buyer, with a guarantee that the seller holds clear title to the property.
  • Garnishment of Wages
    A legal procedure to collect a debt by deducting payments directly from a borrower’s wages.
  • Green Mortgage
    A mortgage that provides financial incentives for energy-efficient home improvements or environmentally friendly construction.
  • Government Loan Program
    Mortgage programs insured or guaranteed by government agencies to help certain types of borrowers.
  • Grantee
    The person or entity receiving the title to a property in a real estate transaction.
  • Grant Deed
    A deed that conveys ownership of a property and guarantees that the property is free from encumbrances.
  • Guaranteed Loan
    A loan with a government or private guarantee, reducing the lender’s risk and often allowing for lower interest rates.
  • Gross Monthly Income
    The total income received each month before taxes and other deductions.
  • Gifts for Down Payment
    Funds received from family or friends to be used towards a down payment, often requiring documentation to verify the source.

H

  • Home Equity Line of Credit (HELOC)
    A revolving credit line secured by the equity in a borrower’s home, allowing access to funds as needed.
  • Homeowners Insurance
    Insurance coverage protecting against damages to a property and its contents, typically required by lenders.
  • HUD-1 Settlement Statement
    A form used to itemize all costs and fees associated with the closing of a real estate transaction.
  • High-Ratio Mortgage
    A mortgage where the loan-to-value ratio is higher than standard limits, often requiring mortgage insurance.
  • Home Equity Loan
    A fixed-rate loan secured by the equity in a borrower’s home, typically used for large expenses or debt consolidation.
  • Housing Expense Ratio
    The ratio of housing costs (including mortgage payments, taxes, and insurance) to the borrower’s gross income.
  • Home Inspection
    An examination of a property’s condition by a professional to identify any issues or necessary repairs before purchase.
  • Home Loan
    A general term for a loan used to purchase or refinance real estate.
  • Homeownership Counseling
    Guidance provided to prospective homebuyers to help them understand the home buying process and manage homeownership responsibilities.
  • Hazard Insurance
    Insurance that covers damages to a property caused by natural disasters, fire, or other hazards.
  • HUD
    The U.S. Department of Housing and Urban Development, which oversees various housing programs and provides guidelines for mortgages.
  • Home Appraisal
    An evaluation of a property’s market value conducted by a licensed appraiser, used to determine the loan amount.
  • Homestead Exemption
    A legal provision that reduces the property tax liability for a primary residence, often available to homeowners.
  • Home Loan Application
    The process of applying for a mortgage, including completing forms and providing financial documentation.
  • Housing Market
    The real estate market in a particular area, including supply, demand, and property values.
  • Hybrid Adjustable-Rate Mortgage
    A mortgage that combines features of fixed-rate and adjustable-rate mortgages, often with a fixed rate for an initial period followed by adjustable rates.
  • High Loan-to-Value Ratio (LTV)
    A mortgage with a high ratio of loan amount to property value, often requiring additional insurance.
  • Home Sale Contingency
    A condition in a real estate contract that requires the sale of the buyer’s current home before purchasing a new one.
  • Housing Authority
    A local or state agency responsible for administering housing programs and assisting with affordable housing.
  • Home Equity Conversion Mortgage (HECM)
    A reverse mortgage program insured by the Federal Housing Administration (FHA) for seniors to convert home equity into cash.

I

  • Interest Rate
    The cost of borrowing money, expressed as a percentage of the loan amount, which affects the monthly mortgage payment.
  • Income Verification
    The process of confirming a borrower’s income through documentation such as pay stubs, tax returns, or bank statements.
  • Interest-Only Mortgage
    A mortgage where only the interest is paid for a specified period, with principal payments beginning later.
  • Impound Account
    An account where funds are collected for property taxes and insurance, managed by the lender or servicer.
  • Index
    A benchmark interest rate used to adjust the interest rate on an adjustable-rate mortgage (ARM).
  • Insurance Premium
    The amount paid for insurance coverage, which may be included in the monthly mortgage payment.
  • Installment Loan
    A loan repaid in regular installments over a set period, such as a mortgage or car loan.
  • Initial Rate
    The starting interest rate on an adjustable-rate mortgage, which may change after a specified period.
  • Interest Accrual
    The process by which interest accumulates on a loan, increasing the total amount owed over time.
  • Interest Rate Cap
    A limit on how much the interest rate on an adjustable-rate mortgage can increase during an adjustment period or over the life of the loan.
  • Income-to-Debt Ratio
    A measure of a borrower’s income compared to their total debt obligations, used to assess loan eligibility.
  • Insured Loan
    A loan backed by an insurance policy or government guarantee to protect the lender against borrower default.
  • Interim Financing
    Short-term financing used to cover costs until permanent financing is secured.
  • Inverted Mortgage
    A type of mortgage where the borrower receives payments based on the equity in their home, typically seen in reverse mortgages.
  • Income Tax Return
    A document filed with the IRS detailing a borrower’s income and tax obligations, used for income verification.
  • Interest Rate Differential
    The difference between the interest rates on two different loans or financial products.
  • Insolvency
    The financial state where a borrower’s liabilities exceed their assets, potentially affecting their ability to secure a mortgage.
  • Interest-Rate Swap
    A financial contract where two parties exchange interest rate payments, often used to manage interest rate risk.
  • Initial Loan Application
    The first step in applying for a mortgage, involving the submission of personal and financial information to the lender.
  • Increased Payment Option
    A feature of some mortgages allowing the borrower to increase their monthly payments to pay off the loan faster.

J

  • Joint Mortgage
    A mortgage taken out by two or more individuals, sharing responsibility for the loan.
  • Jumbo Loan
    A type of mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, typically requiring stricter credit criteria.
  • Judgment
    A court ruling against a borrower for failure to meet debt obligations, which can impact their credit and ability to secure a mortgage.
  • Joint Tenancy
    A form of property ownership where two or more people hold equal shares, with rights of survivorship.
  • Junior Mortgage
    A second mortgage taken out in addition to the primary mortgage, often with higher interest rates due to increased risk.
  • Justified Mortgage
    A mortgage with terms that are legally valid and supported by appropriate documentation.
  • Jumbo Conforming Loan
    A loan that meets the criteria for both jumbo and conforming loans, often used in high-cost areas.
  • Judicial Foreclosure
    A foreclosure process conducted through the court system, often requiring legal proceedings to repossess the property.
  • Joint Ownership
    A property ownership arrangement where two or more individuals share ownership rights and responsibilities.
  • Jumbo Credit Line
    A credit line that exceeds standard limits, often used for high-value properties or large-scale investments.
  • Junk Fee
    Unnecessary or excessive fees charged by lenders or brokers that do not provide a real service or benefit.
  • Judicial Mortgage
    A mortgage subject to judicial oversight, often used in legal proceedings or disputes.
  • Joint Liability
    Shared responsibility for debt repayment among multiple borrowers on a joint mortgage.
  • Jargon-Free Loan
    A mortgage product or service designed to be straightforward and easy to understand, free of complex terminology.
  • Joint-Property Mortgage
    A mortgage agreement involving multiple parties who jointly own the property.
  • Judicial Review
    The process of reviewing mortgage terms or foreclosure actions through a court system to ensure fairness and legality.
  • Jumbo Refinancing
    The process of refinancing a loan that exceeds conforming limits, often requiring additional documentation or stricter qualifications.
  • Just-In-Time Financing
    Short-term financing solutions that provide funds precisely when needed for purchasing or refinancing.
  • Joint Application
    The submission of a mortgage application by multiple borrowers, sharing responsibility for the loan.
  • Judgment Lien
    A legal claim on property resulting from a court judgment, which can affect the ability to obtain a mortgage.

K

  • K-1 Form
    A tax document used to report income, deductions, and credits from partnerships, often used for self-employed borrowers.
  • Key Lockbox
    A secure box used to store property keys during the mortgage or real estate transaction process.
  • Key Loan Term
    The main terms and conditions of a mortgage, including interest rate, repayment period, and loan amount.
  • Kiosk Mortgage Application
    A self-service kiosk where borrowers can apply for mortgages and access information.
  • Knowledgeable Mortgage Advisor
    A professional who provides expert advice and guidance on mortgage products and processes.
  • K-12 Mortgage Program
    A mortgage program specifically designed for educators, offering benefits or incentives for teachers and school staff.
  • Keep-Investment Mortgage
    A mortgage structure that allows borrowers to maintain investments while making mortgage payments.
  • K-1 Disclosure
    The process of providing detailed information about income and financial status using the K-1 tax form.
  • K-1 Income Verification
    Verifying income reported on a K-1 tax form for borrowers with income from partnerships or investments.
  • Key Rate
    The primary interest rate set by a central bank, which influences mortgage rates and financial markets.
  • Knowledge-Based Authentication
    A security measure used to verify the identity of mortgage applicants through knowledge questions.
  • Key Loan Features
    Important attributes of a mortgage, such as interest rate, term, and payment structure.
  • K-1 Tax Filing
    The process of filing income tax returns using the K-1 form, relevant for borrowers with partnership income.
  • Kickback
    An illegal or unethical payment or commission received for directing business to a particular lender or service provider.
  • Kiosk-Based Mortgage Application
    An automated system allowing borrowers to apply for a mortgage and access loan information in a public setting.
  • Knowledge Assessment
    An evaluation of a borrower’s understanding of mortgage terms and processes, often conducted during application.
  • K-12 Educator Loan Program
    A mortgage program offering special terms for individuals working in K-12 education.
  • Key Appraisal Factors
    Essential elements considered in property appraisals, including location, condition, and market value.
  • K-1 Document Requirements
    Documentation required for income verification using the K-1 form, important for self-employed or partnership income.
  • Kiosk Loan Processing
    The use of automated kiosks for processing mortgage applications and managing documentation.

L

  • Loan-to-Value Ratio (LTV)
    The ratio of the loan amount to the appraised value of the property, used to assess risk and determine mortgage terms.
  • Lien
    A legal claim on a property to secure payment of a debt, which must be resolved before the property can be sold.
  • Late Fee
    A charge incurred when a borrower fails to make a mortgage payment by the due date.
  • Loan Application
    The process of applying for a mortgage, including submitting personal and financial information to the lender.
  • Lender
    An individual or institution that provides funds for a mortgage, which must be repaid with interest.
  • Lock-In Period
    The time frame during which a borrower’s interest rate is locked in and protected from market fluctuations.
  • Loan Officer
    A professional who assists borrowers in applying for and obtaining mortgage loans.
  • Legal Description
    A precise, written description of a property’s boundaries and location, used in legal documents and transactions.
  • Loan Servicing
    The administration of a mortgage loan, including collecting payments, managing escrow accounts, and handling customer service.
  • Lien Release
    The process of removing a lien from a property once the associated debt has been paid in full.
  • Loan Estimate
    A document provided by lenders that outlines the estimated costs and terms of a mortgage loan.
  • Loan Modification
    A change to the terms of an existing mortgage, often to make the loan more affordable for the borrower.
  • Lender’s Title Insurance
    Insurance protecting the lender from losses due to title defects or issues that were not identified before closing.
  • Loan Pre-Approval
    An initial assessment by a lender to determine how much a borrower may qualify to borrow, based on their financial situation.
  • Lender’s Fee
    Charges imposed by the lender for processing and underwriting a mortgage loan.
  • Loan Closing
    The final step in the mortgage process, where the loan is finalized, and the property is officially transferred to the buyer.
  • Legal Counsel
    An attorney who provides legal advice and assistance with mortgage transactions and issues.
  • Loan Agreement
    A formal contract outlining the terms and conditions of a mortgage loan between the lender and borrower.
  • Loan Repayment Schedule
    A detailed plan showing how the borrower will repay the mortgage over time, including payment amounts and dates.
  • Late Payment
    A payment made after the due date, which may incur additional charges or affect the borrower’s credit score.

M

  • Mortgage
    A loan used to purchase or refinance real estate, secured by the property itself.
  • Monthly Payment
    The amount paid each month towards the mortgage, including principal, interest, taxes, and insurance.
  • Mortgage Rate
    The interest rate applied to the mortgage loan, determining the cost of borrowing.
  • Mortgage Broker
    An intermediary who helps borrowers find and obtain mortgage loans from various lenders.
  • Mortgage Insurance
    Insurance that protects the lender in case the borrower defaults on the loan, often required for high-LTV loans.
  • Mortgage Underwriting
    The process of evaluating a borrower’s financial information to determine loan eligibility and risk.
  • Mortgage Refinance
    The process of replacing an existing mortgage with a new one, often to obtain better terms or rates.
  • Mortgage Commitment
    A lender’s promise to provide a loan to the borrower under specified terms and conditions.
  • Mortgage Servicer
    An entity responsible for managing and collecting payments on a mortgage loan.
  • Mortgage Application
    The process of applying for a mortgage, including submitting necessary documents and information to the lender.
  • Mortgage Points
    Fees paid upfront to reduce the interest rate on a mortgage, also known as discount points.
  • Mortgage Deed
    A legal document that secures the mortgage loan by pledging the property as collateral.
  • Mortgage Principal
    The original amount of the loan, excluding interest and other fees, which is repaid over time.
  • Mortgage Term
    The length of time over which the mortgage loan must be repaid, commonly 15, 20, or 30 years.
  • Mortgage Refinancing
    The process of taking out a new mortgage to replace an existing one, typically to secure better terms or rates.
  • Mortgage Disclosure
    Information provided to the borrower about the terms, costs, and conditions of the mortgage loan.
  • Mortgage Loan Originator
    A professional who helps borrowers apply for and secure mortgage loans, including brokers and loan officers.
  • Mortgage Interest Rate
    The percentage charged on the outstanding balance of the mortgage, influencing the total cost of the loan.
  • Mortgage Escrow
    An account where funds are held to cover property taxes and insurance premiums, managed by the lender.
  • Mortgage Pre-Approval
    An initial assessment by a lender indicating the maximum loan amount a borrower may qualify for, based on their financial profile.

N

  • Negative Amortization
    A situation where the mortgage balance increases because the payments do not cover the interest charges, resulting in higher debt.
  • No-Doc Loan
    A mortgage loan that requires little or no documentation from the borrower, often with higher interest rates.
  • Note
    A written agreement detailing the borrower’s promise to repay the mortgage loan, including terms and conditions.
  • Net Income
    The amount of income remaining after taxes and deductions, used to assess mortgage affordability.
  • Non-Conforming Loan
    A mortgage that does not meet the guidelines set by Fannie Mae or Freddie Mac, often requiring different underwriting standards.
  • Ninth Circuit Court
    A federal appellate court that may hear cases related to mortgage disputes and foreclosure actions.
  • No-Closing-Cost Mortgage
    A mortgage where the borrower does not pay closing costs upfront but may have a higher interest rate or fees rolled into the loan.
  • Nations Bank Mortgage
    A specific mortgage product or service offered by Nations Bank, which may have unique features or benefits.
  • New Construction Loan
    A loan used to finance the construction of a new property, often with different terms and requirements than standard mortgages.
  • Non-QM Loan
    A mortgage that does not meet the Qualified Mortgage (QM) standards set by regulatory agencies, often with different risk profiles and requirements.
  • Non-Owner Occupied Property
    A property that is not occupied by the owner, often used for rental or investment purposes.
  • Negotiated Rate
    An interest rate on a mortgage that has been negotiated between the borrower and lender, potentially differing from standard rates.
  • Negative Equity
    A situation where the value of a property is less than the outstanding mortgage balance, also known as being underwater.
  • Non-Performing Loan
    A loan on which the borrower is not making payments, often leading to default or foreclosure.
  • New Mortgage Application
    The process of applying for a new mortgage loan, including providing updated financial information and documentation.
  • No-Fee Mortgage
    A mortgage where the borrower does not pay certain fees, often with higher interest rates or other costs associated.
  • Non-Traditional Mortgage
    A mortgage product that does not follow standard lending guidelines, often with unique features or terms.
  • Non-Recurring Closing Costs
    One-time fees associated with closing a mortgage, such as appraisal fees or title insurance, that do not recur during the life of the loan.
  • No-Prepayment Penalty Loan
    A loan that does not charge a penalty for paying off the mortgage early.
  • Notice of Default
    A formal notice sent to a borrower indicating that they have missed mortgage payments and are at risk of foreclosure.

O

  • Origination Fee
    A fee charged by the lender for processing a new mortgage application, typically a percentage of the loan amount.
  • Owner’s Title Insurance
    Insurance protecting the property owner against losses due to title defects or issues that were not identified before closing.
  • Open-End Mortgage
    A mortgage that allows the borrower to borrow additional funds against the equity of the property without having to reapply.
  • Outstanding Balance
    The remaining amount of the mortgage loan that has not yet been repaid, including principal and interest.
  • Origination Point
    A fee paid upfront to cover the cost of processing and underwriting a mortgage, often expressed as a percentage of the loan amount.
  • Optional Payment
    A payment feature that allows the borrower to make payments beyond the required amount to reduce the loan balance faster.
  • Overage Fee
    A fee charged for exceeding certain limits, such as withdrawal limits on a home equity line of credit.
  • Owner Occupancy Rate
    The percentage of properties in a development or area that are owner-occupied rather than rented.
  • Occupancy Permit
    A permit required to occupy a newly constructed or renovated property, ensuring it meets safety and building codes.
  • One-Time Close Loan
    A mortgage that combines the construction loan and permanent financing into a single loan, closing only once.
  • Optional Adjustable-Rate Mortgage
    A mortgage with adjustable interest rates but allows for certain options to lock in rates or make changes.
  • Outstanding Mortgage Balance
    The remaining amount owed on a mortgage loan, excluding any prepayments or additional charges.
  • Occupancy Status
    The classification of a property based on how it is used, such as owner-occupied, second home, or investment property.
  • Open Market Mortgage
    A mortgage offered under market conditions, typically with competitive terms and rates based on current economic factors.
  • One-Time Payment
    A lump-sum payment made towards the mortgage, often used to pay off a portion of the loan or make a significant principal reduction.
  • Option ARM
    An adjustable-rate mortgage with multiple payment options, including minimum payments that may result in negative amortization.
  • Owner Financing
    A property financing arrangement where the seller provides the loan directly to the buyer, bypassing traditional lenders.
  • Occupancy Cost
    The total cost of living in a property, including mortgage payments, property taxes, insurance, and maintenance.
  • Over-The-Counter Mortgage
    A mortgage obtained through a non-traditional channel, such as a broker or online platform, rather than directly from a bank.
  • Open-End Credit Line
    A revolving line of credit that allows borrowers to draw funds up to a certain limit, often used in home equity lines of credit.

P

  • Principal
    The original loan amount borrowed, excluding interest and other fees, which is repaid over the life of the loan.
  • Prepayment Penalty
    A fee charged for paying off a mortgage early, intended to compensate the lender for lost interest income.
  • Private Mortgage Insurance (PMI)
    Insurance required for conventional loans with a down payment less than 20%, protecting the lender in case of default.
  • Property Taxes
    Taxes levied on real estate by local governments, often included in the monthly mortgage payment through an escrow account.
  • Pre-Approval
    A preliminary assessment by a lender to determine how much a borrower may qualify to borrow, based on their financial situation.
  • Points
    Fees paid upfront to reduce the mortgage interest rate, with each point typically equaling 1% of the loan amount.
  • Property Appraisal
    An evaluation of a property’s market value conducted by a licensed appraiser, used to determine the loan amount and assess property worth.
  • Payment Schedule
    A detailed plan outlining the dates and amounts of mortgage payments, including principal and interest.
  • Primary Residence
    The main home where the borrower resides most of the time, often qualifying for different mortgage terms and tax benefits.
  • Payoff Amount
    The total amount needed to fully repay the mortgage loan, including remaining principal and any accrued interest.
  • Pre-Qualification
    An informal evaluation of a borrower’s financial situation to estimate how much they may qualify to borrow, often based on self-reported information.
  • Private Lender
    An individual or organization that provides mortgage loans outside of traditional banking institutions, often with different terms.
  • Payment Shock
    The significant increase in monthly mortgage payments resulting from an adjustment in an adjustable-rate mortgage.
  • Payment Protection Insurance
    Insurance that covers mortgage payments in case of borrower illness, job loss, or other financial hardships.
  • Principal Balance
    The portion of the mortgage that represents the original loan amount, excluding interest and other costs.
  • Prepaid Items
    Costs paid upfront, such as property taxes or insurance premiums, often included in the mortgage payment through an escrow account.
  • Property Management
    The administration of rental properties, including maintenance, tenant relations, and financial management.
  • PITI
    An acronym for Principal, Interest, Taxes, and Insurance, representing the components of a typical mortgage payment.
  • Purchase Agreement
    A legal document outlining the terms and conditions of a real estate transaction, including price, contingencies, and closing details.
  • Payment History
    A record of all mortgage payments made, including dates and amounts, which affects the borrower’s credit score and loan status.

Q

  • Qualified Mortgage (QM)
    A category of mortgages that meet specific criteria set by regulatory agencies, designed to ensure borrower affordability and reduce risk.
  • Qualifying Ratios
    Ratios used to determine a borrower’s ability to repay a mortgage, including the debt-to-income ratio and housing expense ratio.
  • Quitclaim Deed
    A legal document that transfers property ownership without guaranteeing the title’s validity, often used in divorces or transfers between family members.
  • Qualification Criteria
    The requirements a borrower must meet to qualify for a mortgage, including credit score, income, and debt levels.
  • Qualified Residential Mortgage (QRM)
    A type of mortgage that meets specific underwriting standards, often exempt from certain risk-retention rules.
  • Quick Close Mortgage
    A mortgage process designed to close quickly, often within a short timeframe, to expedite the home buying or refinancing process.
  • Quasi-Government Loan
    A mortgage backed by a government-sponsored enterprise (GSE) like Fannie Mae or Freddie Mac, but not directly issued by a government agency.
  • Quantitative Easing
    A monetary policy where a central bank buys securities to increase the money supply and lower interest rates, impacting mortgage rates.
  • Qualified Borrower
    A borrower who meets the necessary criteria to obtain a mortgage, including financial stability, creditworthiness, and income levels.
  • Qualifying Guidelines
    The standards and criteria used by lenders to evaluate a borrower’s eligibility for a mortgage loan.
  • Qualified Borrower Program
    A specialized mortgage program designed for borrowers meeting certain criteria, such as first-time homebuyers or veterans.
  • Quick Appraisal
    An expedited property appraisal process to facilitate faster mortgage approvals or transactions.
  • Quasi-Fixed Mortgage
    A mortgage with terms similar to a fixed-rate loan but with some adjustable features, blending elements of both types.
  • Quality Assurance Review
    An evaluation process to ensure the mortgage application and loan process meet specific quality and compliance standards.
  • Quarterly Payment Plan
    A mortgage payment schedule where payments are made every three months, instead of monthly.
  • Qualified Financing
    Financing options that meet regulatory standards and criteria, often with favorable terms for borrowers.
  • Quick Refinance
    A streamlined refinancing process designed to expedite the approval and funding of a new mortgage.
  • Qualifying Income
    The income considered by lenders to determine a borrower’s ability to repay a mortgage, including wages, bonuses, and other sources.
  • Quality Control
    Measures taken by lenders to ensure the accuracy and compliance of mortgage loans with regulatory requirements and standards.
  • Qualified Homebuyer
    A homebuyer who meets the necessary criteria for a mortgage loan, including financial stability, creditworthiness, and income requirements.

R

  • Refinancing
    The process of replacing an existing mortgage with a new one, often to secure better terms or rates.
  • Reverse Mortgage
    A type of loan for seniors that allows them to convert home equity into cash, with repayment due when they move out, sell, or pass away.
  • Rate Lock
    An agreement to secure a specific interest rate on a mortgage for a set period, protecting against rate fluctuations.
  • Real Estate Agent
    A licensed professional who assists buyers and sellers in real estate transactions, including purchasing or selling property.
  • Recording Fees
    Fees paid to a local government for officially recording the mortgage and property transfer documents.
  • Real Estate Settlement Procedures Act (RESPA)
    A federal law that requires lenders to provide borrowers with information about the costs and terms of their mortgage and protects against certain practices.
  • Realtor
    A real estate professional who is a member of the National Association of Realtors (NAR) and adheres to its code of ethics.
  • Rehabilitation Loan
    A type of mortgage used to finance the purchase and renovation of a property, often including both the cost of the home and repairs.
  • Rate Reduction
    The process of lowering the interest rate on an existing mortgage, often through refinancing or loan modification.
  • Regular Payment Plan
    A standard mortgage payment schedule where payments are made on a regular basis, typically monthly.
  • Refinance Rate
    The interest rate applied to a new mortgage obtained through refinancing, potentially different from the original rate.
  • Release of Lien
    A legal document confirming that a lien on a property has been removed, often after the debt has been paid.
  • Real Estate Appraisal
    An assessment of a property’s value conducted by a licensed appraiser, used to determine the loan amount and assess property worth.
  • Rent-to-Own
    A financing arrangement where renters have the option to purchase the property they are renting

, often with a portion of the rent applied towards the purchase price.

  • Rate Spread
    The difference between the mortgage interest rate and a benchmark rate, such as the yield on government bonds or the prime rate.
  • Residential Mortgage
    A mortgage loan used to purchase or refinance a residential property, such as a single-family home or condominium.
  • Repayment Period
    The length of time over which a mortgage loan must be repaid, including the schedule of payments.
  • Rural Housing Loan
    A type of mortgage designed for properties located in rural areas, often with specific eligibility criteria and benefits.
  • Revolving Credit
    A type of credit that allows borrowers to draw funds up to a certain limit and repay over time, often used in home equity lines of credit.
  • Refinance Options
    Various choices available for refinancing a mortgage, including different loan terms, interest rates, and types of mortgages.

S

  • Secured Loan
    A loan backed by collateral, such as a home or car, which the lender can claim if the borrower defaults.
  • Subprime Mortgage
    A mortgage offered to borrowers with poor credit history, often with higher interest rates and less favorable terms.
  • Standard Fixed-Rate Mortgage
    A traditional mortgage with a fixed interest rate for the entire term of the loan, providing predictable monthly payments.
  • Settlement Statement
    A detailed document outlining the final costs and fees associated with closing a mortgage transaction, also known as the HUD-1 statement.
  • Servicing Fee
    A fee charged by the loan servicer for managing and administering the mortgage, including collecting payments and handling customer service.
  • Second Mortgage
    An additional loan taken out against the value of a property, subordinate to the primary mortgage, often used for home improvements or debt consolidation.
  • Self-Employed Mortgage
    A mortgage designed for individuals who are self-employed, often with different documentation and income verification requirements.
  • Seller Financing
    A financing arrangement where the property seller provides a loan directly to the buyer, bypassing traditional lenders.
  • Secondary Market
    The marketplace where existing mortgages are bought and sold between investors, including entities like Fannie Mae and Freddie Mac.
  • Subordination Agreement
    A legal document that establishes the order of claims against a property, determining which mortgage or lien is paid first in case of default.
  • Specialty Mortgage
    A type of mortgage designed for specific borrower needs or situations, such as interest-only loans or adjustable-rate mortgages with unique features.
  • Security Interest
    A legal claim on collateral used to secure a loan, giving the lender the right to take possession of the collateral in case of default.
  • Standard Adjustable-Rate Mortgage
    An adjustable-rate mortgage with a specific schedule of rate adjustments, providing a balance between fixed and variable rates.
  • Short Sale
    The sale of a property where the proceeds are less than the amount owed on the mortgage, often requiring lender approval.
  • Settlement Costs
    The expenses associated with closing a mortgage transaction, including fees for appraisal, title insurance, and other services.
  • State Housing Finance Agency
    A state-specific agency that provides mortgage assistance and housing programs, often offering specialized loan products or down payment assistance.
  • Seller’s Disclosure
    A document provided by the seller detailing the condition of the property and any known issues, often required in real estate transactions.
  • Special Assessment
    A charge imposed by a local government for improvements or repairs to a property or neighborhood, often added to property taxes.
  • Soft Credit Inquiry
    A credit check that does not affect the borrower’s credit score, often used for pre-qualification or initial assessments.
  • Streamline Refinance
    A simplified refinancing process with reduced documentation and requirements, often designed for government-backed loans like FHA or VA.

T

  • Title Insurance
    Insurance that protects against financial loss due to defects or issues with the property title, ensuring clear ownership.
  • Term
    The length of time over which a mortgage loan must be repaid, typically ranging from 15 to 30 years.
  • Truth in Lending Act (TILA)
    A federal law requiring lenders to disclose the cost of borrowing, including the annual percentage rate (APR) and total repayment costs.
  • Tax Escrow
    An account where funds are held by the lender to cover property taxes, ensuring timely payment and preventing tax delinquencies.
  • Teaser Rate
    An introductory interest rate on a mortgage that is lower than the standard rate, often for a limited time.
  • Title Search
    An examination of public records to confirm the legal ownership of a property and identify any liens or encumbrances.
  • Temporary Buydown
    A financing option where the borrower’s interest rate is reduced temporarily, often for the first few years of the loan.
  • Transfer of Ownership
    The process of legally changing the owner of a property, typically involving a deed transfer and recording with local authorities.
  • Truth-in-Lending Disclosure
    A document provided by lenders outlining the terms, costs, and conditions of the mortgage loan, required under TILA.
  • Termite Inspection
    An inspection conducted to check for termite damage or infestation, often required before finalizing a home purchase.
  • Tax Credit
    A reduction in the amount of tax owed, which may be available to homebuyers or homeowners under specific programs.
  • Traditional Mortgage
    A standard mortgage loan with fixed terms and interest rates, providing predictable payments and stability.
  • Title Commitment
    A preliminary report issued by a title company outlining the terms of the title insurance policy and any issues that need to be addressed before closing.
  • Temporary Financing
    Short-term financing used to bridge the gap between the purchase of a new property and the sale of an existing one.
  • Tenant’s Insurance
    Insurance that protects tenants’ personal belongings and liability, often required by landlords as a condition of the lease.
  • Title Deed
    A legal document that conveys ownership of a property from one party to another, recorded with local authorities.
  • Total Interest Percentage (TIP)
    A measure of the total amount of interest paid over the life of the loan, expressed as a percentage of the original loan amount.
  • Take-Out Loan
    A long-term mortgage used to pay off a short-term construction loan, allowing for permanent financing of the property.
  • Transfer Tax
    A tax imposed by local governments on the transfer of property ownership, often paid by the seller or buyer.
  • Trade-In Mortgage
    A mortgage option allowing borrowers to trade in their current property as part of the financing for a new home purchase.

U

  • Underwriting
    The process of evaluating a borrower’s financial information to determine loan eligibility and risk.
  • Uniform Residential Loan Application (URLA)
    A standardized form used to apply for a mortgage, including detailed personal and financial information.
  • Upfront Mortgage Insurance Premium (UFMIP)
    An insurance premium paid at the start of a mortgage, often associated with FHA loans, to protect the lender against default.
  • Underwater Mortgage
    A situation where the outstanding mortgage balance exceeds the property’s current market value, also known as negative equity.
  • Unsecured Loan
    A loan not backed by collateral, often with higher interest rates due to increased risk for the lender.
  • Urban Development Loan
    A mortgage designed to finance the purchase or improvement of property in urban areas, often with specific eligibility criteria.
  • Underwriting Guidelines
    The criteria and standards used by lenders to evaluate mortgage applications and assess borrower risk.
  • Usury Laws
    Regulations that limit the amount of interest a lender can charge on a loan, designed to protect borrowers from excessively high rates.
  • Unpaid Balance
    The portion of the mortgage that remains to be repaid, excluding any payments made or additional charges incurred.
  • Usage Fee
    A fee associated with the use of certain financial services or products, such as a home equity line of credit.
  • Upside Down Mortgage
    Another term for an underwater mortgage, where the borrower owes more on the loan than the property is worth.
  • Uniformity in Mortgage Practices
    Standards and practices applied uniformly across mortgage transactions to ensure consistency and fairness.
  • Unpaid Principal Balance
    The remaining amount of the principal loan balance that has not yet been repaid, excluding interest and other fees.
  • Utility Bill Verification
    A process of confirming a borrower’s utility payments and history as part of the mortgage application process.
  • U.S. Department of Housing and Urban Development (HUD)
    A federal agency that oversees housing programs and regulations, including FHA loans and housing assistance.
  • Underwriting Fee
    A fee charged by the lender for evaluating and processing the mortgage application, assessing risk and eligibility.
  • Urban Property
    Real estate located in a city or metropolitan area, often subject to different market conditions and mortgage requirements compared to rural properties.
  • Universal Mortgage
    A mortgage product designed to be applicable across various types of properties and borrower situations, with flexible terms and features.
  • Undisclosed Debt
    Debt that was not revealed during the mortgage application process, which may impact loan approval and terms.
  • **Unrecorded L

ien**
A claim against a property that has not been officially recorded with local authorities, potentially affecting ownership and title.

V

  • Variable-Rate Mortgage
    A mortgage with an interest rate that fluctuates based on market conditions, leading to variable monthly payments.
  • VA Loan
    A mortgage backed by the U.S. Department of Veterans Affairs, available to veterans, active-duty service members, and certain other individuals with favorable terms.
  • Vacancy Rate
    The percentage of rental properties that are unoccupied or available for rent, impacting rental income and property investment.
  • Value Appreciation
    The increase in a property’s value over time, often influencing investment decisions and refinancing options.
  • Vendor Fee
    Fees charged by third parties involved in the mortgage process, such as appraisers, inspectors, or title companies.
  • Verification of Employment (VOE)
    A process of confirming a borrower’s employment status and income as part of the mortgage application and underwriting process.
  • Veteran’s Benefits
    Financial assistance and support programs available to veterans, including VA loans and homebuyer benefits.
  • Variable Interest Rate
    An interest rate that can change periodically based on market conditions or an underlying index, impacting mortgage payments.
  • Value of Property
    The estimated worth of a property, determined through appraisal, market comparisons, or other valuation methods.
  • Voluntary Payment
    Additional payments made by the borrower towards the mortgage principal or interest, often to reduce the loan balance more quickly.
  • VA Funding Fee
    A fee charged on VA loans to help offset the costs of the program, often financed into the loan amount.
  • Valuation Report
    A document provided by an appraiser detailing the value of a property, used in mortgage applications and real estate transactions.
  • Vacant Property
    A property that is not currently occupied or in use, potentially impacting its value and financing options.
  • Valuation Method
    The approach used to determine a property’s value, including methods like the sales comparison approach, cost approach, and income approach.
  • Variable-Rate Financing
    A financing option with an interest rate that varies based on market conditions, affecting loan payments and overall costs.
  • Vendor Management
    The process of overseeing and coordinating third-party services involved in the mortgage process, such as appraisers and inspectors.
  • VA Appraisal
    An appraisal conducted for properties financed with a VA loan, assessing value and condition to meet program requirements.
  • Variable Payment Plan
    A payment schedule where the payment amounts may vary based on changes in interest rates or other factors.
  • Vacation Home Mortgage
    A mortgage specifically for purchasing a second home or vacation property, often with different terms compared to primary residence mortgages.
  • Value Engineering
    The practice of improving the value of a property through cost-effective enhancements, often considered in renovation or construction projects.

W

  • WRAP Mortgage
    A type of mortgage that includes an existing mortgage and a new loan, with the new loan “wrapping around” the old one.
  • Warrantable Condo
    A condominium that meets the criteria set by lenders or investors for financing, often involving specific management and financial requirements.
  • W-2 Income
    Income reported on a W-2 form, which is used to verify a borrower’s earnings from employment.
  • Workforce Housing
    Housing designed for individuals with moderate to low incomes, often supported by government programs or incentives.
  • Written Authorization
    A document signed by the borrower granting permission for the lender or other parties to access financial information or conduct specific actions.
  • Walk-Through Inspection
    A final inspection of the property conducted before closing to ensure it meets agreed-upon conditions and is in acceptable condition.
  • Wraparound Loan
    A financing arrangement where a new mortgage covers the remaining balance of an existing mortgage and provides additional funds.
  • Weekly Payment Plan
    A mortgage payment schedule where payments are made on a weekly basis, as opposed to the traditional monthly schedule.
  • Warranty Deed
    A legal document that guarantees the seller has clear title to the property and can legally transfer ownership to the buyer.
  • Work-In-Progress Report
    A report detailing the status and progress of construction or renovation work on a property, often required for construction loans.
  • Weighted Average Cost of Capital (WACC)
    A calculation used to determine the average cost of financing a property, including both debt and equity costs.
  • Wraparound Mortgage
    A type of financing that includes both an existing mortgage and a new loan, with the new loan covering the existing one and providing additional funds.
  • Warranty Program
    A program offering protection or guarantees for homebuyers, including warranties on appliances or structural components.
  • Wide-Lending Ratio
    A ratio used to evaluate borrower eligibility based on broader financial criteria, often incorporating various income and expense factors.
  • Working Capital
    The funds available for day-to-day operations of a property or business, often considered in financial evaluations for mortgages or investments.
  • Wealth Management
    Services focused on managing and growing an individual’s financial assets, including investment strategies and estate planning.
  • Whole Loan Sale
    The sale of an entire mortgage loan, rather than selling individual mortgage securities or parts of the loan.
  • Withdrawal Penalty
    A fee charged for early withdrawal of funds from a savings account or investment, potentially affecting mortgage-related savings plans.
  • Wraparound Financing
    A type of loan that includes an existing mortgage and additional financing, with the new loan covering the existing balance and providing extra funds.
  • Warrantable Loan
    A mortgage that meets specific criteria required by investors or insurers for approval and purchase.

X

  • X-Value
    A theoretical valuation used in models or simulations to estimate property worth or mortgage-related financial scenarios.
  • X-Factor
    An additional variable or consideration used in mortgage underwriting or property evaluation, such as unique property features or market conditions.
  • X-Rating
    A system or score used to assess mortgage products or lenders based on specific criteria or performance metrics.
  • X-Period
    A designated time frame used in mortgage calculations or financial evaluations, such as an adjustable-rate mortgage adjustment period.
  • X-Percentage
    A percentage used to represent specific financial metrics in mortgage calculations or evaluations, such as loan-to-value ratios or interest rate spreads.
  • X-Applied Rate
    The rate applied to specific financial calculations or mortgage products, often used in customized or niche scenarios.
  • X-Unit
    A unit of measure used in property valuation or mortgage calculations, representing specific increments or categories.
  • X-Adjustment
    An adjustment made to financial figures or mortgage terms based on specific factors or conditions, often used in complex scenarios.
  • X-Disclosure
    An additional disclosure provided in mortgage transactions to cover unique or non-standard elements, ensuring complete transparency.
  • X-Assessment
    An assessment conducted to evaluate specific aspects of a mortgage or property, including specialized or non-traditional criteria.

Y

  • Yield Spread
    The difference between the yield on a mortgage-backed security and a benchmark interest rate, used to assess investment performance.
  • Yearly Interest Rate
    The interest rate applied to a mortgage calculated on an annual basis, often used for long-term financial projections.
  • Yield Curve
    A graphical representation of interest rates for various maturities, used to assess the cost of borrowing and investment returns.
  • Yardstick Method
    A method used to evaluate property value or mortgage terms by comparing with standard or benchmark values.
  • Year-End Balance
    The remaining mortgage balance at the end of a calendar year, including any principal and interest payments made.
  • Yield Maintenance
    A provision requiring borrowers to make additional payments to compensate for the lender’s lost interest income in case of early loan repayment.
  • Yard Sale Mortgage
    A term used to describe a mortgage deal or property sale that occurs quickly or under unusual circumstances, often at a significant discount.
  • Yearly Amortization Schedule
    A detailed plan outlining the mortgage payments, including principal and interest, for each year of the loan term.
  • Yield on Investment
    The return on a property investment, often expressed as a percentage of the initial investment amount.
  • Yearly Property Tax
    The annual property tax amount assessed by local governments, often included in the mortgage payment through an escrow account.

Z

  • Zero-Down Payment Loan
    A mortgage that requires no down payment, often available through government programs or special financing options.
  • Zero-Interest Loan
    A loan that does not accrue interest, often used in specific programs or promotional offers.
  • Zero-Coupon Mortgage
    A type of mortgage where interest is not paid periodically but is instead accumulated and paid in full at the end of the loan term.
  • Zero-Equity Loan
    A loan where the borrower does not need to provide any equity or down payment, often offered in certain specialized loan programs.
  • Zero-Percent Financing
    A financing option with no interest charged, often used for promotional purposes or in specific loan programs.
  • Zoning Regulations
    Local government rules governing land use and property development, affecting how properties can be used or modified.
  • Zoning Compliance
    The confirmation that a property adheres to local zoning regulations, often required for certain types of mortgages or property changes.
  • Zero-Default Mortgage
    A mortgage with no history of defaults, used to signify a low-risk loan or a program with guarantees against default.
  • Zoning Change
    An alteration to existing zoning regulations or classifications, impacting property use and mortgage considerations.
  • Zero-Fee Mortgage
    A mortgage that does not have associated fees or closing costs, often offered as a promotional or special financing option.

We compare, you save up to 45%
on your mortgage

Call me ITA

Vuoi parlare ora?

Inserisci il tuo numero di telefono e uno dei nostri esperti ti richiamerà per rispondere a tutte le tue domande.

Nome
Nome
Nome
Cognome
+