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All There are 80 entries in the glossary.
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| 80/20 Loan | Combination of a first mortgage at 80 percent of the sale price or value, and a second mortgage at 20 percent. Loan type is meant to steer clear of mortgage insurance required on first mortgages that exceed 80 percent of value. | | | | | Adjustable Rate Mortgage (ARM) | Loan in which the interest rate is not fixed for the entire term of the loan. The interest rate can change throughout the life of the loan, in line with movements of an index rate.
| | | | | Amortization |
Repayment of mortgage loan through monthly installments of principal and interest. The monthly payment amount is based on a schedule that will allow borrower to own the home at the end of a specific time period (for example, 15 or 30 years).
| | | | | Amortization Schedule |
Listing of the monthly mortgage payments, broken down by interest and principal, and loan balance. Also includes tax and insurance payments if made by the lender, and the balance of the tax/insurance escrow account.
| | | | | Annual Percentage Rate |
Annual Percentage Rate (APR) is a measure of the cost of credit, expressed as a yearly rate. The APR takes into account the amount financed, the finance charge, and the amounts and timing of the payments. Under the Truth in Lending Law, the APR must be disclosed and labeled.
| | | | | Appraisal |
Formal documentation providing an estimate of a property’s fair market value. Appraisals are generally required by a lender before the loan is approved, to ensure that the amount of the loan does not exceed the value of the property.
| | | | | Appraiser |
Professional who sets a value on the property and structures, based on his or her knowledge of the local real estate market. The appraiser is selected by the lender, and the borrower pays the appraisal fee.
| | | | | Borrower |
Person(s) who have been approved to receive a loan, and then obligated to repay it and any additional fees according to the loan terms.
| | | | | Certificate of Title |
Documentation proving that the property legally belongs to the current owner. Before the title is transferred at closing, it should be clear and free of all liens or other claims. The certificate is provided by a qualified source, such as a title company.
| | | | | Closing |
Time when the borrower takes on the loan obligation, pays all closing costs and receives title from the seller. The closing (also known as the settlement) represents the formal selling and transfer of the property from the seller to the buyer.
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