Wraparound mortgage definition6/10/2023 It can be expressed as the actual rate or as the amount of change allowed above the start rate. While the payments are initially low, they will increase when the subsidy expires.Ĭap The highest rate that an adjustable rate mortgage may reach. Brokers usually charge a fee or receive a commission for their services.īuy Down When the lender and/or the home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan. Could also be referred to as Chapter 7, 11 or 13.īroker An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. This is the entity to which the loan is owed.īK / Bankruptcy A reorganization or discharge of debts. It is expressed as a percentage.īalloon Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.īeneficiary The entity funding the loan. This must be approved by the lender and be allowed by the note, which was originally signed by the seller.īack End This refers to the debt-to-income ratio calculated using principal, interest, taxes, insurance and consumer credit obligations divided by gross monthly income. The APR allows homebuyers to compare different types of mortgages based on the annual cost for each loan.Īppraisal An estimate of the value of real property, made by a qualified professional called an "appraiser." An appraisal will be needed to determine the value of your property.Īssumption The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs. A fully amortized loan will be completely paid off at the end of the loan term.Īnnual Percentage Rate (APR) An interest rate reflecting the cost of a mortgage as a yearly rate. This is standardized coverage.Īmortized / Amortization Amortization refers to the principal portion of the loan payment and is the loan payment by equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. (ARM)Īdjustment Interval On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years, depending on the index.Īmerican Land Title Association (ALTA) An organization of title companies specializing in Real Property Law which has standardized forms and coverage on a national basis. Also sometimes known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage. Please click on the letter below to skip to the definition of the word you are looking for.Ī B C D E F G H I J K L M N O P Q R S T U V W X Y Zġ003 Uniform Residential Loan Application.Ī & D LOAN Acquisition and development loan- a loan for the purchase of raw land for the purpose of development.Ībstract Title A written history of the ownership of a parcel of land.Īcceleration Clause Allows the lender to speed up the rate at which your loan comes due or even to demand immediate payment of the entire outstanding balance of the loan should you default on your loan.Īcknowledgment A declaration by a notary, certifying, by way of personal knowledge or written identification, the identity of the signer.Īdjustable Rate Mortgage (ARM) Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index.
0 Comments
Leave a Reply. |