For an adjustable-rate mortgage (ARM), the amount that is added to the index to establish the interest rate on the adjustment date, subject to any limitations on the interest rate change.
A homeowners' association in a large condominium or planned unit development (PUD) project that is made up of representatives from sub-associations covering specific areas within the project. In effect, it is a "second-level" association that handles matters affecting the entire development, while the "first-level" associations handle matters affecting their particular portions of individual projects.
The date on which the principal balance of a loan, bond or other financial instrument becomes fully due and payable.
A credit report that contains information from the three (3) major nationwide credit repositories. When the report is created, the information is compared for duplicate entries. Any duplicates are combined to provide a summary of credit. Also known as a "tri-merge" report.
The act of changing any of the terms of the mortgage. Also referred to as a mortgage recast.
That portion of the total monthly mortgage 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.
A mortgage that requires payments to reduce the underlying debt once a month.
A legal document that pledges a property to the lender as security for payment of an underlying debt.
An individual or company that originates mortgages exclusively for resale in the secondary mortgage market or that directly funds such loans for that purpose.
An individual or company that brings borrowers and lenders together for the purpose of loan origination. Mortgage brokers typically charge a fee or a commission for their services. See broker.
A contract that insures the lender against loss caused by a borrower's default on a government mortgage or conventional mortgage. Most lenders generally require MI for a loan with a loan-to-value (LTV) greater than 80 percent. Mortgage insurance can be issued by a private company or by a government agency such as the Federal Housing Administration (FHA). Depending on the type of mortgage insurance, the insurance may cover either a percentage of or the entire mortgage loan amount.
The amount paid by a borrower for mortgage insurance coverage, either to a private mortgage insurance (MI) company or to a government agency such as the Federal Housing Administration (FHA).
A type of term life insurance obtained by borrowers. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while the policy is in force, the mortgage debt is automatically satisfied by insurance proceeds.
A loan secured by real property that is encumbered by a mortgage.
See origination fee and origination points.
The monthly payment of principal and interest required under a mortgage loan.
A recorded legal document indicating that a particular parcel of property is securing a loan. The mortgage is a security instrument that creates a lien on the property, which is foreclosed in the event of a default.
The lender under a mortgage arrangement.
The deed that transfers a foreclosure property to the successful bidder or other third-party as the result of a foreclosure.
Refers to the borrower in a mortgage loan transaction. The borrower grants a mortgage to the lender and the mortgagee as collateral for the loan.
Properties that provide separate housing units for more than one family, although they secure only a single mortgage. Apartment buildings are multifamily units.