Q-Z Terms

Refinancing: The act of paying off one loan by obtaining another. Refinancing is generally done to secure better loan terms, such as a lower interest rate. RESPA: The Real Estate Settlement Procedures Act is a 1974 law aimed at protecting consumers by requiring disclosures (including a Good Faith … [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...]

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...]

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...]