N Mortgage Terms | Watkinsville Real Estate
A
| B | C |
D | E | F |
G | H |
I | J | K | L
| M | N |
O | P | Q |
R | S |
T | U | V |
WXYZ
Negative
Amortization
Amortization in which the payment made is insufficient
to fund complete repayment of the loan at its termination.
Usually occurs when the increase in the monthly payment
is limited by a ceiling. The portion of the payment
which should be paid is added to the remaining balance
owed. The balance owed may increase, rather than decrease
over the life of the loan.
Net Worth
The value of all a person's assets, including cash,
minus all liabilities.
Note
A legal document that obligates a borrower to repay
a mortgage loan at a stated interest rate during a specified
period of time.
Note Rate
The interest rate stated on a mortgage note.
Notice of Default
A formally written notice to a borrower that a default
has occurred and that legal action may be taken.
Original Principal Balance
The total amount of principal owed on a mortgage before
any payments are made.
Origination Fee
The lender's charge for evaluating, preparing, processing
and submitting a mortgage.
Owner Financing
A property purchase transaction in which the property
seller provides all or part of the financing.
Partial Payment
A payment that is not sufficient to cover the scheduled
monthly payment on a mortgage loan.
PITI
Principal, interest, taxes and insurance, which comprise
your monthly mortgage payment.
Personal Property
Items that do not go with the real estate. See details
under Real Property.
Planned Unit Development (PUD)
A project or subdivision that has a homeowners' association
and includes common property for the benefit and use
of the individual PUD unit owners.
Points
One Point equals one percent of the loan amount. If
a particular mortgage required you to pay 2 Points,
and you were getting a $100,000 mortgage, you would
have to pay $2,000 at the Closing.
Power of Attorney
A legal document that authorizes another person to act
on one's behalf. A power of attorney can grant complete
authority or can be limited to certain acts and/or certain
periods of time.
Preforeclosure Sale
A procedure in which the investor allows a mortgagor
to avoid foreclosure by selling the property for less
than the amount that is owed to the investor.
Pre-Qualification
The process of determining how much money a prospective
homebuyer will be eligible to borrow before he or she
applies for a loan.
Previous
Home Ownership
Using the Federal definition, a previous home owner
is a person who owned their personal residence during
the past three years.
Principal
The mortgage amount on which Interest is calculated.
Principal Balance
The outstanding balance of principal on a mortgage.
The principal balance does not include interest or any
other charges.
Prepayment Penalty
A fee paid to the lending institution for paying a loan
prior to the scheduled maturity date. Prepayment penalties
are not allowed for Utah Housing loans.
Private Mortgage Insurance
Insurance which covers some of the bank's losses in
the event of a default (Foreclosure). The lender may
require you to pay this insurance if the mortgage is
larger than 80% of the value of the home (Loan-to-Value
Ratio).
Property Taxes
Taxes (based on the assessed value of the home) paid
by the homeowner for community services such as schools,
public works, and other costs of local government. Normally,
these are paid as a part of the monthly mortgage payment.
Qualifying Ratios
Comparisons of a borrower's debts and gross monthly
income to determine whether a borrower can qualify for
a mortgage. They consist of two separate ratios: (1)
housing expense as a percent of total income; and (2)
total debt obligations as a percent of total income.
Quitclaim Deed
A deed that transfers ownership without warranty.
Rate Lock - see Lock-In
Real
Property (Real Estate)
Anything that cannot be removed from the house or the
land without causing damage is Real Property and goes
with the land. This is the opposite of Personal Property
which might include such items as wall coverings, curtains,
some light fixtures, and appliances. You should have
a contract that specifies which items are real and which
are personal.
Real Estate Agent
A person licensed to negotiate and transact the sale
of real estate on behalf of the property owner.
Real
Estate Purchase Contract
A written contract signed by the buyer and seller stating
the terms and conditions under which a property will
be sold.
Realtor®
A real estate broker or an associate who holds active
membership in a local real estate board that is affiliated
with the National Association of Realtors.
Recorder
The county official who keeps records of transactions
such as deeds, liens and Trust Deeds that affect real
property in the area.
Recording
The county recorder records your Trust Deeds in order
to rank the various lenders for payment in the event
of a Foreclosure.
Refinance Transaction
The process of paying off one loan with the proceeds
from a new loan using the same property as security.
Remaining Term
The original amortization term minus the number of payments
that have been applied.
Rent With Option To Buy - see Lease-Purchase
Mortgage Loan
Repayment Plan
An arrangement made to repay delinquent installments
or advances. Lenders' formal repayment plans are called
"forebearance agreements".
RESPA (Real Estate Settlement Procedure
Act)
To comply with this act, your lender must give you a
good-faith estimate of the mortgage costs as well as
a breakdown of the actual costs before you sign the
binding mortgage contract (see Good-Faith
Estimate and Closing
Costs).
Reverse Equity Mortgage - see Home
Equity Conversion Mortgage
Second Mortgage
The Second Mortgage on a property. In the event of a
Foreclosure, the lender of this mortgage has to wait
in line to be paid, behind the primary mortgage holder.
There is more risk for a Second Mortgage holder. That
is why the terms are never as good as the terms that
are available for a Primary Mortgage.
Secured Loan
A loan that is backed by collateral.
Security
The property that will be pledged as collateral for
a loan.
Security Interest
An interest that a lender takes in the borrower's property
to assure repayment of a debt.
Servicing a Loan
The ongoing process of collecting and applying your
monthly mortgage payments on your loan together with
handling other related items such as paying for taxes
or insurance.
Settlement Sheet - see HUD
I Settlement Statement
Survey
A drawing or map showing the precise legal boundaries
of a property, the location of improvements, easements,
rights of way, encroachments, and other physical features.
Sweat Equity
Contribution to the construction or rehabilitation of
a property in the form of labor or services rather than
cash.
Third-Party Origination
A process by which a lender uses another party to completely
or partially originate, process, underwrite, close,
fund, or package the mortgages it plans to deliver to
the secondary mortgage market. See Mortgage Broker.
Title
Ownership of Real
Property.
Title Company
A company that specializes in examining and insuring
titles to real estate.
Title Insurance
An insurance policy that protects the buyer or the lender
against loss of their interest in property due to legal
defects in the title. The Title Insurance company performs
a search through the history of the property (see Abstract
of Title) to see if there are any Liens or other obligations
attached to the property.
Total Expense Ratio
Total obligations as a percentage of gross monthly income.
The total expense ratio includes monthly housing expenses
plus other monthly debts.
Transfer of Ownership
Any means by which the ownership of a property changes
hands. Lenders consider all of the following situations
to be a transfer of ownership: the purchase of a property
"subject to" the mortgage, the assumption of the mortgage
debt by the property purchaser, and any exchange of
possession of the property under a land sales contract
or any other land trust device. In cases in which an
inter vivos revocable trust is the borrower, lenders
also consider any transfer of a beneficial interest
in the trust to be a transfer of ownership.
Truth-In-Lending
A federal law that requires lenders to fully disclose,
in writing, the terms and conditions of a mortgage,
including the annual percentage rate (APR) and other
charges.
Underwriting
The process of verifying data and approving a loan.
Unsecured Loan
A loan that is not backed by collateral.
VA Loan
More appropriately termed "VA Guaranteed Loan". A loan
for which the Veteran's Administration indemnifies the
lender against certain losses the lender may incur due
to your default. Available only to veterans possessing
a Certificate of Eligibility.
Variable Rate Mortgage - see Adjustable-Rate
Mortgage
A
| B | C |
D | E | F |
G | H |
I | J | K | L
| M | N |
O | P | Q |
R | S |
T | U | V |
WXYZ
|
