The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
The most likely price a given property will bring if widely exposed on the market, assuming fully informed buyer and seller.
Title that is free of liens, clouds on title and legal defects affecting the property
A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land.
The minimum amount that you must pay (usually monthly) on your account. In some plans, the minimum payment may be "interest only." In other plans, the minimum payment may include principal and interest.
One of the most important components of the loan underwriting process is determining the borrower's monthly income. The income of all borrowers and co-borrowers is included in the calculation. The income can be derived from several sources, but it must be supported by historical documentation and have a high likelihood of continuation.
These include monthly credit obligations, such as installment payments, revolving charge cards or other borrower obligations that will continue longer than 10 months. Usually, 5% of the current balance of a revolving charge account is used for the monthly payment.
A professional that helps consumers through the loan selection, processing and closing of a mortgage loan. Most mortgage brokers have access to a wide range of mortgage products through many mortgage lenders. Mortgage brokers are paid a fee by the borrower when a suitable mortgage is found and closed.
A lien or claim against real property given as security for a loan. It is a two party agreement as apposed to tri-party agreemenet of a deed of trust.
The lender of money or the receiver of the mortgage document.
Insurance required for a loan-to-value ratio above 80.01%.
Financial intermediaries that orginate mortgage loans through loan officers or independent mortgage brokers and sell the mortgages into the secondary mortgage market servicing retained or released.
The document outlining the amount of the debt, the terms and payments, the interest rate, margins and caps for ARMs, the name of the lender and the borrower, and any other material item required by the lender.
A funding facility, such as a commercial bank, that is used by mortgage companies to fund loans which are sold to an investor shortly thereafter. The mortgage notes are used as collateral for this interim financing.
The borrower of money or the giver of the mortgage document.