The voluntary surrender of property, owned or leased. Abandonment does not relieve obligations associated with ownership or lease.
A reduction in amount or intensity. Usually relates to a decrease in taxes or payments due.
A written summary of the title history of a particular piece of real estate.
A provision of a mortgage or note which provides that the entire outstanding balance will become due and payable in the event of default. The right of the lender to demand the immediate repayment of the mortgage loan balance upon the default of the borrower, or by using the right vested in the Due-on-Sale Clause.
A declaration by a person who has signed a document that such signature is a voluntary act, made before a duly authorized person.
A mortgage loan in which the interest rate is adjusted periodically based on a pre-selected index.
The cost of a property plus the value of any capital expenditures for improvements to the property, minus any depreciation taken.
The date that the interest rate changes on an adjustable-rate mortgage (ARM).
On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years depending on the index.
The period elapsing between adjustment dates for an adjustable-rate mortgage (ARM).
The dollar value added or subtracted from the sale price of a comparable property used to provide an indication of value of the subject property.
An analysis of a buyer’s ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.
The legal relationship between a principal and his agent arising from a contract in which the principal engages the agent to perform certain acts on behalf of the principal.
A table that shows the periodic payments of interest and principal and the unpaid balance for each term, usually for each month of the term of the loan.
The length of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30- year fixed-rate mortgage.
APR is a measurement of the full cost of a loan including interest and loan fees expressed as a yearly percentage rate. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans.
That part of the closing costs pre-paid to the lender at the time of application to cover initial expenses.
An estimate of the value of property made by a qualified professional called an "appraiser".
An opinion of a property's fair market value based on an appraiser's knowledge, experience, and analysis of the property based on recent comparable sales.
One qualified to estimate the value of real property. (Usually a certified, general, residential, or licensed appraiser)
A mortgage in which the interest rate is adjusted periodically, based on the movement of a financial index.
A transaction among parties, each of whom acts in his or her best interest.
The value placed on a piece of real estate by the taxing authority for the purpose of taxation. Also called an assessment.
A local tax levied against a property for a specific purpose, such as a sewer or street lights.
An mortgage that can be transferred from the seller to the new buyer. Generally requires a credit review of the new borrower and lenders may charge a fee for the assumption. If a mortgage contains a due-on-sale clause, it may not be assumed by a new buyer.
An agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply.
The fee paid to a lender (usually by the purchaser of real property) when an assumption takes place.
A legal seizure of property to force payment of a debt. An attachment creates a lien on property.
One of several criteria used to qualify a loan. The back end ratio takes into consideration all current indebtedness.
A condition where complete real estate ownership is impaired by unsettled claims and liens. Also called Cloud on Title.
A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty-year amortization and a five year or other term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a balloon payment.
The financial inability to pay one’s debts when due and the debtor seeks relief through court action that may restructure the debts or erase the debt.
The person who receives or is to receive the benefits from a specific action or act.
A written instrument given to pass Title of personal property from the seller to the buyer.
A plan to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment required if the loan were a standard 30-year fixed-rate mortgage. The result for the borrower is a substantial savings in interest.
A mortgage covering at least two pieces of real estate as security for the same mortgage.
An interest rate applied to a refinanced loan that is higher than the old rate but lower than the new rate usually offered as an inducement. In a refinance with a simultaneous first and second mortgage an average of the first and second mortgage rates calculated with the percentage of each loan in relation to the total loan. (The average is not an average of the two rates only)
One who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan.
A second trust that is collateralized by the borrower's present home allowing the proceeds to be used to close on a new house before the present home is sold. Also known as "swing loan."
An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
Consumer safe guards which limit the amount of increase of the interest rate on an adjustable rate mortgage which may change per year and/or the life of the loan.
Consumer safe guards which limit the amount monthly payments may increase on an adjustable rate mortgage.
The amount of cash derived over a certain period of time from an income- producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, etc.).
The maximum allowable interest rate over the life of the loan of an adjustable rate mortgage.
The document given to qualified veterans which entitles them to VA guaranteed loans for homes, business and mobile homes. Certificates of eligibility may be obtained by sending form DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility).
An appraisal issued by the Veterans Administration showing the property's current market value.
A statement provided by an abstract company, title company, or attorney stating that the title of real estate is legally held by the current owner.
The document given to veterans or reservists who have served 90 days of continuous active duty (including training time) It may be obtained by sending DD 214 to the local VA office with form 26-8261a (request for certificate of veteran status. This document enables veterans to obtain lower down payments on certain FHA insured loans).
The frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM).
The act of transferring ownership of property from seller to buyer in accordance to a sales contract. A meeting between the buyer, seller and lender or their agents where the property and funds legally change hands, also called settlement.
A third party who prepares the paperwork and conducts the closing or settlement.
These are expenses over and above the price of the property that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
A financial disclosure giving an account of all funds received and expected at closing, including the escrow deposit for taxes, hazard insurance and mortgage insurance for the escrow account.
A statement of principles concerning behavior of those who subscribe to the code.
The relationship between the unpaid principal balances of all the mortgages on a property and the properties appraised value or the loan amount whichever is less.
An agent's or broker's fee for bringing the principals together and helping to negotiate a real estate transaction, often a percentage of the sales price or flat fee.
Refers to similar properties used for comparison purposes in the appraisal process. These properties will be reasonably the same size and location, with similar amenities and characteristics, so that the approximate fair market value of the subject property can be determined.
Ownership of a single unit in a multiunit building or complex of buildings. Along with this goes a share of ownership of the common areas.
A short term interim loan to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he or she progresses.
An organization that prepares reports used by lenders to determine a potential borrower's credit history. The agency gets data for these reports from a credit repository and from other sources.
Contract between purchaser and a seller of real estate to convey title after certain conditions have been met. It is a form of an installment sale.
A brokerage office that provides related services through subsidiary companies.
A provision in an ARM allowing the loan to be converted to a fixed-rate at some point during the term. Usually, conversion is allowed at the end of the first adjustment period. The conversion feature may cost extra.
Adjustable-rate mortgage with rate that adjusts based on a cost of funds index, often the 11th District Cost of Funds.
Promise written into Deeds and other instruments agreeing to performance or non-performance of certain acts or preventing certain uses of the property.
A report documenting the credit history and current status of a borrower's credit standing.
An organization that gathers , records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.
A credit risk score is a statistical summary of the information contained in a consumer's credit report. The most well-known type of credit risk score is the Fair Isaac or FICO score. This form of credit scoring is a mathematical summary calculation that assigns numerical values to various pieces of information in the credit report. The overall credit risk score is highly relative in the credit underwriting process for a mortgage loan.
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio.
In many states, this document is used in place of a mortgage to secure the payment of a note.
Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage.
When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance. See negative amortization.
An independent agency of the federal government which guarantees long-term, low-or no-down payment mortgages to eligible veterans.
A statement whereby responsibility is rejected. A renunciation of ownership of a property.
Amount paid to the lender at the time of origination of the loan to account for the difference between the market rate and the lower face rate of the note.
Money paid to make up the difference between the purchase price and the mortgage amount.
Making a reasonable effort to perform under a contract. Making a reasonable effort to provide accurate and complete information. Examination of property to determine presence of contaminants.
Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment.
A right to the limited use of land owned by another. An electric company, for example, could have an easement to put up electric power lines over someone's property.
The cost of credit on a yearly basis expressed as a percentage that includes up- front costs paid to obtain the loan. It is higher than the interest rate stipulated in the mortgage note.
A claim against a property by another party which usually affects the ability to transfer ownership of the property.
The VA home loan benefit is called an entitlement (i.e. entitlement for a VA guaranteed home loan). This is also known as eligibility.
Is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.
The difference between the fair market value and current indebtedness, also referred to as the owner's interest. The value an owner has in real estate over and above the obligation against the property.
An account held by the lender into which the home buyer pays money for tax or insurance payments. Also earnest deposits held pending loan closing.
The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.
The part of a mortgagor’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due.
A provision in a mortgage allowing the borrower to surrender the property without personal liability for the loan.
Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere.
The former name for the regulatory and supervisory agency for federally chartered savings institutions. The agency is now called the Office of Thrift Supervision.
Is a quasi-governmental agency that purchases conventional mortgage from insured depository institutions and HUD-approved mortgage bankers.
A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages.
A tax-paying corporation created by Congress that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by VA. This institution, which provides funds for one in seven mortgages, makes mortgage money more available and more affordable.
A loan insured by the Federal Housing Administration open to all qualified home purchasers.
Requires a fee (up to 2.25 percent of the loan amount) paid at closing to insure the loan with FHA. In addition, FHA mortgage insurance requires an annual fee of up to 0.5 percent of the current loan amount, paid in monthly installments. The lower the down payment, the more years the fee must be paid.
The Federal Home Loan Mortgage Corporation provides a secondary market for savings and loans by purchasing their conventional loans. (Also known as "Freddie Mac.")
A credit score developed by Fair Isaac and Company. A credit score attempts to condense a borrowers credit history in a single number.
A promise by FHA to insure a mortgage loan for a specified property and borrower. A promise from a lender to make a mortgage loan.
The monthly payment due on a mortgage loan including payment of both principal and interest.
The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage for the original borrower.
Property, such as a hot water heater or plumbing fixture, that has become permanently attached to piece of real estate and goes with the property when it is sold.
An independent agency report required by the lender to determine whether a property is located in a flood hazard zone, which would then require a federally mandated flood insurance policy.
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.
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood zones.
A legal process by which the lender forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage. Also known as a repossession of property.
In an adjustable rate mortgage (ARM) the interest rate indicated by the sum of the current value of the index and margin applied to the loan.
A Deed for which consideration is love and affection and no material consideration is involved.
Under Real Estate Settlement Procedures Act, an estimate of closing costs that must be given to mortgage applicants within three days after loan application is made.
Also known as "Ginnie Mae," provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.
The period during which one party may fail to perform without being considered in default.
A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.
For qualifying purposes, the income of the borrower 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.
A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.
A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm, etc.
A loan secured by a second mortgage on one’s principal residence, generally to be used for some non-housing expenditure. The HELOC establishes a credit line that can be drawn upon as needed.
An insurance policy that covers the dwelling and its contents in case of fire or wind damage, theft, liability for property damage and personal liability.
The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income. See debt-to-income ratio.
A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing.
That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves.
Real estate that is owned for investment purposes and not used as the owner's residence.
A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one- three-, and five-year U.S. Treasury security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average costs-of-funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down.
The sum of the published index plus the margin. For example, if the index were 9% and the margin 2.75%, the indexed rate would be 11.75%.
This refers to the original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). It's also known as "start rate" or "teaser."
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI).
The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.
An arrangement that allows the property seller to deposit money to an account. That money is then released each month to reduce the mortgagor's monthly payments during the early years of a mortgage.
For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.
A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion.
When the buyer agrees to make payments directly to the seller at pre-negotiated terms. The seller agrees to deed the property to the buyer upon completion of the agreement. The buyer becomes the owner of equity in this type of sale. (Also see Owner Financing.)
The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.
An alternative financing option that allows low- and moderate-income home buyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes, and insurance (PITI) payments on the first mortgage plus an extra amount that accumulates in a savings account for a down payment.
A person's financial obligations. Liabilities include long-term and short-term debt.
A claim upon a piece of property for the payment or satisfaction of a debt or obligation.
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage.
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan.
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.
The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate.
The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.
It is insurance from FHA to the lender against incurring a loss on account of the borrower's default.
That portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortizes, the monthly fixed installment does not include any amount for principal reduction and doesn't cover all of the interest. The loan balance therefore increases instead of decreasing.
A legal document that pledges a property to the lender as security for payment of a debt.
A company that originates mortgages exclusively for resale in the secondary mortgage market.
An individual or company that charges a service fee to bring borrowers and lenders together for the purpose of loan origination.
Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA 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.
Occurs when monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan.
A written proposal to buy a piece of real estate that becomes binding when accepted by the seller. Also called a sales contract.
The regulatory and supervisory agency for federally chartered savings institutions. Formally known as Federal Home Loan Bank Board.
Mortgage whose annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin, chosen by the lender.
The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the face value of the loan.
The date when a new monthly payment amount takes effect on an adjustable- rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the adjustment date.
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.
Principal, Interest Taxes and Insurance which comprise a mortgage payment that includes taxes and insurance escrow.
A map of a piece of land showing boundary lines, streets, actual measurements and easements.
Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).
The process of determining how much money you will be eligible to borrow before you apply for a loan.
Necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.
A privilege in a mortgage permitting the borrower to make payments in advance of their due date.
Money charged for an early repayment of debt. Prepayment penalties are allowed in some form (but not necessarily imposed) in many states.
A preliminary assessment of a buyer's ability to secure a loan, based on a specific set of lending guidelines and buyer representations made. This is not a guarantee or commitment by a lender to extend credit.
The interest rate charged by banks to their preferred corporate customers, it tends to be an estimator for general trends in short term interest rates.
Lenders, such as savings and loan associations, commercial banks, and mortgage companies, who make mortgage loans directly to borrowers. These lenders sometimes sell their mortgages to the secondary mortgage markets such as to FNMA or GNMA, etc.
The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
The outstanding balance of principal on a mortgage not including interest or any other charges.
The four components of a monthly mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the monthly cost of property taxes and homeowners insurance, whether these amounts are paid into an escrow account each month or not.
In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 3 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on your loan's structure.
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate. The rate lock may include lender costs for a specified period of time to guarantee the rate.
A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.
A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
RESPA is a federal law that allows consumers to review information on known or estimated settlement cost once after application and once prior to or at a settlement.
The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract within three days once it is signed if the transaction uses equity in the home as security.
Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
A loan in which the interest rate is adjusted periodically. See adjustable rate mortgage.
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as collateral for and repayment of the loan.
The document issued by the lender when the mortgage loan is paid in full. Also called a "release of mortgage."
A mortgage made subsequent to a first or primary mortgage and subordinate to the first one.
The source of funding primary mortgages that lenders use to sell the mortgages they make.
An organization that collects principal and interest payments from borrowers and manages borrowers’ escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
All the steps and operations a lender performs to keep a loan in good standing, such as collection of payments, payment of taxes, insurance, property inspections and the like.
A mortgage in which a borrower receives a below-market interest rate in return for which the lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to mortgage where the borrower shares the monthly principal and interest payments with another party in exchange for part of the appreciation.
The method used to determine the monthly payment required to repay the remaining balance of a mortgage in substantially equal installments over the remaining term of the mortgage at the current interest rate.
A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.
The substitution of one person for another. The substituted person acquires all rights.
A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any buildings.
An estate that exists only between husband and wife and equal right of possession and enjoyment during their joint lives with the right of survivorship.
An ownership of real estate by two or more persons each of whom has an undivided interest, without the right of survivorship.
Ownership of property by one person or one legal entity (corporate ownership).
Temporary title insurance expected to be soon replaced by a title insurance policy.
A policy designed to protect the buyer or lender after closing from financial losses arising from any defects in the title that may have occurred prior to purchase.
A check of public record to disclose the past and current facts regarding ownership of a particular piece of property.
When 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.
A concept that money available now is worth more than the same amount in the future because of its earning capacity
A policy, usually issued by a title insurance company, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller. Policies are also available to protect the lender's interests.
An examination of municipal records to determine the legal ownership of property. Usually is performed by a title company.
Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.
Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.
In some areas city, county or state taxes imposed when property passes from one person to another.
An arrangement whereby property is transferred to a trusted third party (trustee) by a Grantor (trustor). The Trustee holds the property for the benefit of another (Beneficiary).
One who holds property in trust for another party to secure performance of an obligation.
A federal law requiring disclosures including the Annual Percentage Rate to home buyers after application for the loan. Also known as Regulation Z.
A mortgage in which the borrower receives a below-market interest rate for a specified number of years, and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender may have the option to call the loan due with 30 days notice at the end of the specified time period.
Assume liability for certain events. Guarantee the sale of certain securities. Assess the risk of a situation.
The decision process whether to approve a loan to a potential home buyer based on credit, employment, assets, and other factors and the matching of this risk to an appropriate rate and term or loan.
The form prescribed by the Real Estate Settlement Procedures Act for Federally related mortgages.
An instrument that transfers Title from one party (grantor) to another party (grantee) without providing public notice of change in ownership.
A long-term, low- or no-down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements.
A premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a VA-backed loan.
A document signed by the borrower's financial institution verifying the status and balance of his/her financial accounts.
A document signed by the borrower's employer verifying his/her position and salary.
The responsibility of one person for the acts of another. The responsibility of an employer for acts of an employee.
The voluntary renunciation, abandonment, or surrender of some claim, right, or privilege.
Mortgage firms borrow funds and pay this fee on a short term basis in order to originate loans which are to be sold later in the secondary mortgage market (or to investors).
A Deed that contains a covenant that the grantor will protect the grantee against any and all claims.
Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top.
At MortgageRight, we mortgage.