A-B Terms

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 … [Read more...]

C Terms

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 … [Read more...]

D-E Terms

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 … [Read more...]

F-G Terms

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 … [Read more...]

H-I Terms

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 … [Read more...]

J-L Terms

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 … [Read more...]

M-N Terms

M Margin - For an adjustable-rate mortgage (ARM) or home equity line of credit, the amount that is added to the index to establish the interest rate on each adjustment date, subject to any limitations on the interest rate change. The margin is static and will not change during the life of the … [Read more...]

O-P Terms

O Original Principal Balance - The total amount of principal owed on a mortgage before any payments are made. Origination Fee - A fee paid to a lender for processing a loan application, making a home loan, and recording a mortgage against the borrower's real property as security for repayment … [Read more...]

Q, R, S Terms

Q Qualifying Ratios - Calculations that are used in determining whether a borrower can qualify for a mortgage. They consist of two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a percent of income ratio. Quit Claim Deed - A deed that … [Read more...]

T, U, V Terms

T Tax Bracket - Please select the tax bracket you fall under. If you are unsure what tax bracket you are in, you may want to speak with an accountant find out. Tax Savings - This is the amount of money you save in income taxes. You save this money because in most cases the interest you pay on … [Read more...]