Mortgage in which the remaining principal balance becomes fully due and payable at a predetermined time. Most of the time, balloon loans have level payments unitl the note becomes due and payable.
The final payment of a mortgage which is larger than the regular payment; it usually extinguishes the debt.
A court action to restructure debt.
The lender named on the mortgage note.
Preliminary agreement of sale, usually accompanied by earnest money (term also used with property insurance).
Every 2 weeks, one half of your present monthly payment is electronically debited from your bank to a Trust Account. Your mortgage payment is then paid on your due date for you*. Over the course of a year, by paying one half of your present monthly payment every 2 weeks, approximately every 6 months additional dollars accumulate in the Trust Account for you. These dollars are applied to your principal, accelerating your equity build-up. By using this method, you make the equivalent of 13 payments over the course of a year.
*Interest is not credited to the client during this transaction period.
A mortgage covering more than one property of the mortgage.
A debt instrument in the capital markets. The US government, corporations and municipalities use bonds to raise money. Bonds can also be backed by real estate loans and the payments from mortgages.
If you pay points for a lower interest rate, break even tells you how many months it takes to recover the amount paid.
A form of an interim loan, generally made between a short term loan and a long term loan when the borrower needs additional time before obtaining permanent financing.
A person that represents another for a fee in real estate transactions. Mortgage brokers help consumers locate suitable real estate loans and are paid a fee for their services.
An interest rate buydown is the temporary reduction of the note rate and resulting monthly payments a borrower pays to the lender. The shortfall between the rate on the note and initial payment made by the borrower is usually paid by a third party such as a seller or builder.
Agent who takes the buyer as a client, and is obligated to represent their interest above all others, and owes specific fiduciary duties to the buyer.