A-B Terms
July 23, 2010 By Leave a Comment
A
Acceptance – A buyer’s or seller’s agreement to enter into a contract and be bound by the terms of the offer.
Additional Principal Payment – A payment made by a borrower of more than the scheduled principal amount due, in order to reduce the outstanding balance on the loan, to save on interest over the life of the loan and/or pay off the loan early. [Read more...]
C Terms
July 22, 2010 By Leave a Comment
C
Call Option – A provision in a loan that gives the lender the right to accelerate the debt, and require for full payment of the loan immediately, at the end of a specified period or for specified reason.
Cap – A provision of an adjustable-rate mortgage (ARM) that limits how much the interest rate or loan payments may increase or decrease. In upward rate markets, it protects the borrower from large increases in the interest rate or monthly payment. See lifetime payment cap, lifetime rate cap, periodic payment cap, and periodic rate cap. [Read more...]
D-E Terms
July 22, 2010 By Leave a Comment
D
Debt – An amount owed to another. See installment loan and revolving liability.
Deed – The legal document conveying title to a property.
Deed-In-Lieu – A deed given by a borrower to the lender to satisfy a debt and avoid foreclosure. Also called a “voluntary conveyance.”
Deed Of Trust – The document used in some states instead of a mortgage; title is vested in a trustee to secure repayment of the loan.
Default – Failure to make loan payments on a timely basis or to comply with other requirements of a mortgage.
Delinquency – Failure to make mortgage payments when due. [Read more...]
F-G Terms
July 22, 2010 By Leave a Comment
F
Fair Credit Reporting Act – A consumer protection law that regulates the disclosure and use of consumer credit information, establishes rules for credit reporting to consumer credit reporting agencies, and establishes procedures for a consumer to view his or her credit report and correct mistakes on it.
Fair Market Value – The price that a buyer, willing but not compelled to buy, and a seller, willing but not compelled to sell, would agree on.
Fannie Mae (Federal National Mortgage Association FNMA) – A New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation’s largest source of financing for home mortgages. It adds liquidity to the mortgage market by investing in home loans through the country. [Read more...]
H-I Terms
July 22, 2010 By Leave a Comment
H
Homeowner’s Insurance (Hazard Insurance) – Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards. The policy typically combines personal liability insurance and property hazard insurance coverage for a dwelling and its contents. See also homeowner’s insurance.
Home Equity Line Of Credit (HELOC) – A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower’s equity in a property.
Home Inspection – A thorough inspection that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser. Contrast with appraisal. [Read more...]
J-L Terms
July 22, 2010 By Leave a Comment
J
Joint Tenancy – A form of co-ownership that gives each tenant equal undivided interest and rights in the property, including the right of survivorship. Contrast with tenancy in common, tenancy by the entirety.
Judgment – A decree by a court of law that one person, a debtor, is indebted to another, a creditor, in a specified amount. The court may place a lien against the debtor’s real property as collateral for payment of the judgment to the creditor.
Judgment Lien – A lien on the property of a debtor resulting from a judgment. [Read more...]
