| A
| B | C
| D | E
| F | G
| H | I
| J | L
| M | N
| O | P
| Q | R
| S | T
| U | V
| W | Z |
| Term |
Definition |
1 year adjustable (ARM) |
A loan with a fixed
rate for the first 1 year that has a rate that changes once
each year for the remaining life of the loan. Because the
interest rate can change after the first 1 year, the monthly
payment may also change. |
| 10 year
adjustable (ARM) |
A loan with a fixed
rate for the first 10 years that has a rate that changes
once each year for the remaining life of the loan. Because
the interest rate can change after the first 10 years, the
monthly payment may also change. |
| 10 year
fixed |
A loan with the
same interest rate and payment over the entire 10 year life
of the loan. As one of the shorter loan terms available,
10 year fixed loans offer lower lifetime interest payments
than similar loans with longer terms, but you also have
a higher monthly payment. |
| 15 year
fixed |
You generally pay
a lower interest rate with a 15 year loan. You will pay
less interest and build equity quickly. |
| 2 year
adjustable (ARM) |
A loan with a fixed
rate for the first 2 years that has a rate that changes
once each year for the remaining life of the loan. Because
the interest rate can change after the first 2 years, the
monthly payment may also change. |
| 20 year
fixed |
The 20 year fixed
loan is a good way to have fixed payments and shorten the
term of your loan. You will build equity faster, pay less
interest, and own your home sooner. Your monthly payments
will be higher since the term is shorter. |
| 25 year
fixed |
A loan with the
same interest rate and payment over the entire 25 year life
of the loan. As one of the longer loan terms available,
25 year fixed loans offer lower payments, but you will pay
more in interest over the life of this loan than a similar
loan with a shorter term. |
| 3 year
adjustable (ARM) |
A loan with a fixed
rate for the first 3 years that has a rate that changes
once each year for the remaining life of the loan. Because
the interest rate can change after the first 3 years, the
monthly payment may also change. |
| 30 year
fixed |
The 30 year fixed
is one of the most popular loans. Many people like the fixed
interest rate and lower monthly payments. But since the
term of the loan is long, you will pay more interest over
the life of the loan. |
| 40 year
fixed |
A loan with the
same interest rate and payment over the entire 40 year life
of the loan. As one of the longer loan terms available,
40 year fixed loans offer lower payments, but you will pay
more in interest over the life of this loan than a similar
loan with a shorter term. |
| 5 year
adjustable (ARM) |
A loan with a fixed
rate for the first 5 years that has a rate that changes
once each year for the remaining life of the loan. Because
the interest rate can change after the first 5 years, the
monthly payment may also change. |
| 5-Year
Balloon Mortgage |
The payment is
calculated over a stated term and the balance must be repaid
or refinanced at the end of the 5th year. |
| 7 year
adjustable (ARM) |
A loan with a fixed
rate for the first 7 years that has a rate that changes
once each year for the remaining life of the loan. Because
the interest rate can change after the first 7 years, the
monthly payment may also change. |
| 7-Year
Balloon Mortgage |
The payment is
calculated over a stated term and the balance must be repaid
or refinanced at the end of the 7th year. |
| Abstract
(of Title) |
A summary of the
public records relating to the title to a particular piece
of land. If there are any title defects they must be cleared
before a buyer can purchase clear, marketable, and insurable
title. |
| Acceleration
Clause |
Allows the lender
to speed up the rate at which your loan comes due or even
to demand immediate payment of the entire balance of the
loan should you default on you loan. |
| Accrued
Interest |
Interest that has
accumulated from one payment-due date to the next. Also,
the total amount of interest paid on a loan over time |
| Acquisition
Fee |
A fee charged by
a dealer to begin a lease. Also known as a bank fee if the
lessor is a bank, or an initiation fee. Acquisition fees
start at about $300 and are seldom negotiable. |
| Add-Ons |
Products or services
added by dealerships. Common examples are pinstriping, rustproofing,
alarm systems, electronic equipment, and extended warranties.
Add-ons can really drive up the sticker price of a vehicle,
but their actual cost is usually negotiable. |
| Adjustable
Rate Mortgage (ARM) |
A mortgage in which
the interest rate is adjusted periodically based on an index.
Also known as the renegotiable rate mortgage, the variable
rate mortgage or the Canadian rollover mortgage. |
| Adjustment
Interval |
On an adjustable
rate mortgage, the time between changes in the interest
rate and/or monthly payment, usually one, three or five
years. |
| Advertising
Fee |
An amount charged
the buyer to cover the cost of national and local advertising.
Many experts suggest that this fee should be no more than
1.5 percent of the manufacturer's suggested retail price
(MSRP). |
| Affiliate |
An entity related
to a Seller that is subject to common operating control
and that is operated as part of the same system or enterprise.
The Seller typically owns less than a majority of the voting
stock or the Seller and the entity are subsidiaries of a
third party. |
| Affordable
Gold 5 |
Mortgage with less
than or equal to 95 percent LTV, when at least 5 percent
of the down payment comes from the borrower's personal cash. |
| Affordable
Gold 97 |
Mortgage with greater
than 95 percent loan-to-value (LTV) ratio but less than
or equal to 97 percent LTV, when at least 3 percent of the
down payment comes from the borrower's personal cash. |
| Affordable
Product Type |
Choice of loan
determined under the Affordable Gold program. Indicates
whether to submit the loan under the Affordable Gold program
and, if so, which type of program. |
| Affordable
Seconds |
Subsidized secondary
financing or other financial assistance provided under an
established, documented secondary financing or financial
assistance program that has formal procedures in place to
provide applicant qualification, loan processing, and loan
program administration on an ongoing basis. |
| Agreement
of Sale |
Known by various
names, such as contract of purchase, purchase agreement,
or sales agreement according to location or jurisdiction.
A contract in which a seller agrees to sell and a buyer
agrees to buy, under specific terms spelled out in writing
and signed by both parties. |
| Amortization |
The gradual reduction
of a debt by periodic payments of interest and principal
that are large enough to pay off a loan at maturity. The
loan is repaid through regular, monthly payments of principal
and interest paid for a predetermined amount of time. |
| Amount
Financed |
The part of a vehicle's
cost that a lender supplies. To determine the amount financed,
multiply the purchase price by the interest rate; subtract
that amount from the purchase price; add state purchase
tax to that remainder; then subtract the down payment. Put
differently, AF = purchase price - (purchase price X interest
rate) + tax - down payment. |
| Annual
Fee |
A credit card issuer
may charge you a fee each year for your account. |
| Annual
Percentage Rate (APR) |
The annual cost
of a loan to a borrower. Like an interest rate, the APR
is expressed as a percentage of the loan amount. Unlike
an interest rate, however, it includes other charges or
fees to reflect the total cost of the loan. The Federal
Truth in Lending Act requires that every consumer loan agreement
disclose the APR in large, bold print. Since all lenders
must follow the same rules to ensure the accuracy of the
APR, borrowers can use the APR as a good basis for comparing
the cost of loans. |
| Application |
A written statement
of personal and financial information that is required to
approve a loan. Note that application fees are usually required
for home loans but not for auto loans. |
| Appraisal |
A written analysis
of the estimated value of a property, as prepared by a qualified
appraiser. A fee is typically charged for a real estate
appraisal because a home appraisal is time-consuming. An
appraisal of an auto is usually not necessary because auto
dealers, sellers and buyers all have quick access to the
market value of autos. |
| Appraisal
Fee |
The charge for
estimating the value of property. |
| Appraiser
Network |
Group of licensed/certified
individuals or entities contracted to perform property value
assessments. |
| Appreciation |
The increase in
value of a home or other asset as a result of an increase
in the market. |
| Asking
price |
The price requested
by a seller when a home or property is listed for sale.
This amount is often open to negotiation. |
| Assessment
Fees |
In condominium
living, additional fees charged to unit owners to pay for
any maintenance and repair that exceeds the budget of monthly
condo fees. These fees are determined by the condominium
association and can be levied at any time. |
| Assessment
Report |
Report that appraisers
use to record property values, marketability analyses and
any pertinent comments regarding the subject property. Assessment
reports are classified as appraisal reports or inspection
reports. |
| Assessment
Upgrade |
Approved recommendation
from an appraiser that you must use a more comprehensive
type of assessment. An example of an upgrade recommendation
includes any adverse/atypical findings or other atypical
property or neighborhood condition observed by the appraiser.
You must also upgrade an assessment when its value does
not support the loan transaction; the appraiser is unable
to view the subject property from the public street; the
assessment is "subject to" completion; or repair or property
rights are leasehold. |
| Asset |
Anything that has
monetary or exchange value that is owned by an individual,
business or institution. Assets include real estate property,
personal property, vehicles and enforceable claims against
others (including bank accounts, stocks, mutual funds, and
so on). A lender is very interested in the amount and value
of any assets you may have because assets can be used as
collateral against a loan. Along with other factors such
a a borrower's credit rating, assets are also used to help
determine the amount of the loan. |
| Assumable
Mortgage |
An assumable mortgage
is a mortgage that allows you to take over a mortgage on
a home you are buying or allows a buyer to take over your
mortgage if you are selling your house. The advantage of
this is that you assume a mortgage that has a lower interest
rate than current rates, and you avoid high closing costs. |
| Assumption |
The agreement between
buyer and seller where the buyer takes over the payments
on an existing mortgage from the seller. Assuming a loan
can usually save the buyer money since this is an existing
mortgage debt. |
| Automated
Teller Machines (ATMs) |
Electronic terminals
through which customers may make deposits, withdrawals,
or other transactions as they would through a bank teller. |
| Automated
Underwriting |
Automated underwriting
is used to offer instant decisioning regarding your loan
request. Automated underwriting is similar to instant offer
service. You are usually required to provide additional
information to the lender to close your loan. |
Balloon (Payment) Mortgage |
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 specific time. |
| Bank Draft |
A payment method
where your loan payment is automatically deducted from your
checking or savings account, so you don't have to mail in
your payment each month. |
| Bankruptcy |
A proceeding in
a federal court in which a borrower who owes more than his
or her assets can relieve the debts by transferring his
or her assets to a trustee. Different chapters or types
of bankruptcy exist. If a person files bankruptcy, a record
of the filing appears on the borrower's credit report for
up to 10 years. |
| Base Price |
The cost of a car
without options, but including standard equipment, factory
warranty, and freight. This price is printed on the Monroney
sticker. It's a good idea to know the base price of a car
so you know what it would cost without all the bells and
whistles. |
| Beneficiary |
A person, persons,
or organization designated to receive the benefits from
a life insurance policy, trust, estate, or pension upon
the death of the insured, testator, or pensioner. |
| Bidding
war |
When several potential
purchasers are interested in a home, they may increase their
offer on the property in an effort to outbid the other interested
parties. A bidding war happens when competing bids escalate
the price. (Multiple offers tend to drive up the selling
price.) |
| Bill of
Sale |
A document detailing
the conditions of a sale used to transfer the title to certain
goods from seller to buyer. The seller is responsible for
preparing the bill of sale. |
| Billing
Error |
Any mistake in
your monthly statement as defined by the Fair Credit Billing
Act. |
| Binder
or "Offer to Purchase" |
A preliminary agreement,
secured by the payment of earnest money, between a buyer
and seller as an offer to purchase real estate. A binder
secures the right to purchase real estate upon agreed terms
for a limited period of time. If the buyer changes his mind
or is unable to purchase, the earnest money is forfeited
unless the binder expressly provides that it is to be refunded. |
| Black Book |
A reference book
typically used by dealerships to look up the wholesale value
of an auto. Similar to the Kelley Blue Book, which is generally
used more by consumers. |
| Blue Book |
Officially named
The Kelley Blue Book, this reference is typically used by
consumers to look up the fair market price of the wholesale,
retail, and loan values of autos. |
| Borrower |
One who receives
funds in the form of a loan with the obligation of repaying
the loan in full with interest |
| Break-even
point |
The point at which
a homeowner will begin realizing savings after refinancing
a mortgage. |
| Bridge
Loan |
A bridge loan is
a short-term loan that covers the time between your closing
date of a home you are buying and the closing date of the
home you are selling. You usually need a contract to sell
your current house. |
| Broker |
An individual in
the business of assisting in arranging funding or negotiating
contracts for a client but who does not loan the money himself. |
| Building
Line or Setback |
Distances from
the ends and/or sides of the lot beyond which construction
may not extend. The building line may be set by a filed
plat of subdivision, by restrictive covenants in deeds or
leases, by building codes, or by zoning ordinances. |
| Business
Days |
Always contact
your institution to find out what days it counts as business
days under the Truth in Lending and Electronic Fund Transfer
Acts. |
| Buydown |
When the lender
and/or the home builder subsidizes the mortgage by lowering
the interest rate during the first few years of the loan.
While the payments are initially low, they will increase
when the subsidy expires. |
Capitalized Cost Reduction |
The amount paid
in cash or trade-in at the beginning of a lease. Similar
to a down payment made on a new auto purchase. |
| Caps (Interest) |
Consumer safeguards
which limit the amount the interest rate on an adjustable
rate mortgage may change per year and/or the life of the
loan. |
| Caps (Payment) |
Consumer safeguards
which limit the amount monthly payments on an adjustable
rate mortgage may change. |
| Captive
Finance Company |
A finance company
that is separate from a dealership but is owned by a parent
company. Automobile manufacturers have established captive
finance companies for the purpose of financing autos for
consumers. These finance companies are able to finance any
vehicle - not just the specific manufacturer's products.
Often, a dealer will give you a choice of a special dealer
finance rate or a manufacturer's rebate. In many cases,
the rebate will be a better deal. |
| Cash Flow |
A measure that
compares your income and your expenses. When more cash comes
in than goes out, you have a positive cash flow. Negative
cash flow occurs when more cash goes out than comes in.
Your ability to qualify or be approved for a loan is determined
in part by your cash flow situation. |
| Cash Value |
The accumulated
savings component of a life insurance policy, which is available
to the holder for a loan. The policy holder will receive
payment in this amount if the policy is cancelled or lapses
before the policy matures or the insured person dies. Also
known as the cash surrender value. |
| Cash-out
Refinance |
Refinancing transaction
in which the money the borrower receives from the new loan
exceeds the total amount he uses to repay the existing first
mortgage, closing costs, points; and satisfy any outstanding
subordinate mortgage liens. In other words, a refinance
transaction in which the borrower receives additional cash
he can use for any purpose. |
| CD indexed |
These ARMs are
indexed to Certificate of Deposits (CDs). Adjustments occur
every six months, with a per adjustment cap of 1 percent
and a lifetime cap of 6 percent. |
| Certificate
of Title |
A certificate issued
by a title company or a written opinion by an attorney that
the seller has good marketable and insurable title to the
property which he is offering for sale. A certificate of
title offers no protection against any hidden defects in
the title which an examination of the records could not
reveal. The issuer of a certificate of title is liable only
for damages due to negligence. |
| Close-Ended
Lease |
The higher the
capitalized cost and the lower the residual value, the higher
the auto's depreciation and the more you'll pay in lease
payments. However, the lessor (the company leasing the auto)
accepts the risk that depreciation may be greater than stated
in the lease. In this case, auto is worth less than the
residual value stated in the lease and the lessor is responsible
for that loss. |
| Closing |
The meeting between
the buyer, seller and lender where the property and funds
legally change hands. Also called settlement. |
| Closing
Costs |
Includes a loan
origination fee, points, appraisal fee, title search and
insurance, survey, taxes, deed recording fee, credit report
charge and other costs assessed at settlement. The closing
costs usually are about 2 percent to 6 percent of the mortgage
amount. |
| Closing
Day |
The day on which
the formalities of a real estate sale are finished. The
certificate of title, abstract, and deed are generally prepared
for the closing by an attorney and this cost charged to
the buyer. The buyer signs the mortgage, and closing costs
are paid. The final closing merely reiterates the original
agreement reached in the agreement of sale. |
| Cloud (On
Title) |
An outstanding
claim which negatively affects the marketability of title. |
| Collateral |
Property offered
to support a loan that can be seized if you default. |
| Collision
Insurance |
Insurance which
covers damage to your vehicle that results from a collision
with another vehicle or object. Different than comprehensive
insurance. |
| Commission |
The fee charged
by or paid to a broker, agent or auto sales rep for negotiating
a real estate, car sale or loan transaction. A commission
is generally a percentage of the sales price. |
| Commitment |
An agreement, often
in writing, between a lender and a borrower to loan money
at a future date subject to the stated conditions. |
| Competitive
Market Analysis (CMA) |
A report prepared
by a real estate agent that determines a house's market
value. The agent compares the house's attributes to similar
properties in the area that have recently sold or are still
on the market. The CMA is often used to establish the listing
price. |
| Compounded
Interest |
Interest is computed
on the principal balance of a mortgage plus accrued interest. |
| Comprehensive
Insurance |
Insurance which
covers damage to your vehicle caused by events other than
a collision, such as flood, fire, hail, theft, or vandalism.
Different than collision insurance |
| Condemnation |
A determination
by a governmental agency that a particular building is unsafe
or unfit for use. |
| Condominium |
Individual ownership
of a unit and an individual interest in the common areas
and facilities which serve the project. |
| Condominium
Association |
An association
of unit owners in a condominium building. The association
elects a board of directors, which handles the maintenance
and repair of common areas, disputes among unit owners,
and enforcement of rules and regulations, and condominium
fees. |
| Condominium
Fees |
Also called maintenance
fees, the monthly fees paid by all condominium owners. The
condominium fees go toward the maintenance and repair of
common areas in the building, as well as salaries for groundskeepers,
repairmen and security guards. The condominium fees are
set and managed by the condominium association, and are
typically determined based on the size of your unit. |
| Conduit |
Secondary market
entity that purchases loans from originators. Conduits provide
expertise to evaluate, price, purchase, and service nonconforming
loans. |
| Conforming
Loan |
Any loan that meets
the criteria and limits set forth by the largest buyers
of loans, Fannie Mae or Freddie Mac. |
| Consolidating
debt |
Replacing several
debts or loans by transferring the balances to a single
loan or line of credit, usually at a better rate. (Debt
consolidation loans are often home equity loans or lines.) |
| Construction
Loan |
A short term interim
loan for financing the cost of construction. The lender
advances funds to the builder as the work progresses. |
| Consumer
Reporting Agency |
An organization,
commonly referred to as a credit bureau, that prepares credit
reports which are used by lenders to determine a potential
borrower's credit history. The agency obtains data for these
reports from a credit repository and from other sources. |
| Contractor |
A person who contracts
to erect buildings. There are also contractors for each
phase of construction: heating, electrical, plumbing, air
conditioning, road building and others. |
| Conventional
Loan |
A mortgage not
insured by FHA or guarantee by the VA or Farmers Home Administration
(FmHA). |
| Conventional
Mortgage |
Any mortgage which
is not insured or guaranteed by a government agency such
as HUD/FHA, VA, or the Farmers Home Administration. |
| Conversion
Option |
A conversion option
allows you to convert an ARM to a fixed rate mortgage. You
will likely pay a higher rate or more points to have this
option. |
| Cooperative
Housing |
An apartment building
or a group of dwellings owned by a corporation, the stockholders
of which are the residents of the dwellings. It is operated
for their benefit by their elected board of directors. In
a cooperative, the corporation or association owns title
to the real estate. A resident purchases stock in the corporation
which entitles him to occupy a unit in the building or property
owned by the cooperative. While the resident does not own
his unit, he has an absolute right to occupy his unit for
as long as he owns the stock. |
| Correspondent |
An entity that
typically sells the Mortgages it originates to other lenders.
The Correspondent performs some or all of the loan processing
functions such as taking the loan application, ordering
credit reports, appraisals, title reports, and verifying
the borrower's income and employment. The Correspondent
may or may not have delegated underwriting and typically
funds the loans at settlement. The Mortgage is closed in
the Correspondent's name and the Correspondent may or may
not service the Mortgage. The Correspondent could commission
a Mortgage Broker to perform some of the processing functions. |
| Cosigner |
Another person
who signs your loan and assumes equal responsibility for
it. |
| Cost of
Funds |
These ARMs are
indexed to the actual costs of what banks pay to borrow
money. Rates can adjust every month, six months, or every
year. |
| Covenants,
Conditions and Restrictions (CC&Rs) |
A set of rules
and regulations governing a condominium building. The CC&Rs
can include restrictions on things such as noise levels,
pet ownership and renovations. These rules are enforced
by the condominium association. |
| Credit |
The right granted
by a creditor to pay in the future in order to buy or borrow
in the present; also, a sum of money owed to a person or
business. |
| Credit
Bureau |
An agency that
keeps your credit record. |
| Credit
Card |
Any card used from
time to time to borrow money or buy goods or services on
credit. |
| Credit
History |
The record of how
you've borrowed and repaid debts. |
| Credit
Limit |
The maximum amount
of charges that may be charged to an account. For example,
if you have a credit limit of $5,000, your total charges
cannot exceed this amount. |
| Credit
Ratio |
The ratio, expressed
as a percentage, which results when a borrower's monthly
payment obligation on long-term debts is divided by his
or her net income (FHA/VA loans) or gross monthly income
(Conventional loans). |
| Credit
Report |
A report of an
individual's credit history that a credit reporting company
or credit repository prepares to determine a borrower's
creditworthiness. |
| Credit
Reporting Company |
Company that collects
information received from more than one credit repository,
merges all the information, and reports it in one form;
merged credit reports. |
| Credit
Repository |
Company that collects
information on an individual's credit history and reports
it in one form, the in-file credit report. |
| Credit
score |
A number generated
by a statistical system used to rate credit applicants according
to various characteristics relevant to creditworthiness. |
| Credit
Scoring System |
Statistical system
used to rate credit applicants according to various characteristics
relevant to creditworthiness. |
| Credit
Warranty |
Guarantee or promise
by the seller of the loan relating to the creditworthiness
of the borrower(s). The seller warrants that the borrower
has the willingness to repay and there is evidence of an
acceptable credit reputation. |
| Creditor |
A person or business
from whom you borrow or to whom you owe money. |
| Credit-related
Insurance |
Health, life, or
accident insurance designed to pay the outstanding balance
of debt. |
| Creditworthiness |
Past and future
ability to repay debts. |
| Curb appeal
|
The initial attractiveness
of a property, when viewed from the road. Sellers and real
estate agents will often try to increase the curb appeal
of a home by cleaning up the porch, trimming plants along
a walkway, or giving the outside of a home a fresh coat
of paint. |
| Current
Index Value |
Your current index
value is the index that is used to figure your interest
adjustment on ARMs. |
| Customer
Incentive (Rebate) |
Commonly referred
to as rebate, an incentive is paid by manufacturer to the
customer as a way to increase product sales that are usually
targeted for a quick sale. For example, slow-selling vehicles
or previous model-year autos still in the dealerships may
be priced with an incentive to sell faster than they have
been. The payment can be applied to the cost of the vehicle
or received in cash by the customer. Or, the auto buyer
may choose special dealer financing. Often, taking the rebate
is the better deal. |
De Minimus Self-employed Borrower |
Borrower who earns
less than 5 percent of total stable monthly income from
self-employed business income. |
| Dealer
Charges |
Charges for extra
services or products sold by the dealer, including rust
proofing, undercoating and extended warranties. |
| Dealer
Holdback |
An allowance, usually
between 2 and 3 percent of MSRP, which manufacturers provide
dealers, frequently as a credit to the dealer's account.
A holdback allowance may allow the dealer to pay the manufacturer
less than the invoiced amount. Therefore, the vehicle could
be sold to you at cost while permitting the dealer to receive
a small profit. Holdback is also known as a pack. |
| Dealer
Incentives |
Programs offered
by manufacturers to increase the sales of slow-selling models
or to reduce excess inventories. Dealers may elect to pass
on the savings to the buyer. Often, the dealer gives the
buyer a choice of a special dealer finance rate or a manufacturer's
rebate. In many cases, the rebate will be a better deal. |
| Dealer
Invoice |
The amount which
dealers are invoiced or billed by the manufacturer for a
vehicle and any optional accessories. |
| Dealer
Sticker Price |
The Monroney sticker
price plus the suggested retail price of dealer-installed
options, dealer preparation, and undercoating. |
| Dealership |
A company authorized
by a manufacturer to sell that manufacturer's products. |
| Death Benefit |
The amount of money
the beneficiary is paid under an insurance policy when the
insured person dies, less any outstanding loans against
the policy. Also called the principal sum or survivor benefit. |
| Debit Card
(EFT Card) |
A plastic card,
looks similar to a credit card, that consumers may use to
make purchases, withdrawals, or other types of electronic
fund transfers. |
| Debt |
An amount of money
owed by one person, company, organization or other entity
to another. |
| Debt consolidation |
Replacing several
debts or loans by transferring the balances to a single
loan or line of credit, usually at a better rate. (Debt
consolidation loans are often home equity loans or lines.) |
| Debt consolidationloan
|
A new loan, usually
a home equity loan, taken out to pay off the balances of
several debt accounts, leaving you with a single monthly
payment, instead of several. Often, a debt consolidation
loan will carry a lower rate of interest than other debts
such as credit cards. |
| Deductible |
The amount of a
claim you pay out-of-pocket before the insurance company
assumes the expenses. The deductible is typically a fixed
dollar amount (e.g. $250). |
| Deed |
A formal written
instrument by which title to real property is transferred
from one owner to another. The deed should contain an accurate
description of the property being conveyed, should be signed
and witnessed according to the laws of the State where the
property is located, and should be delivered to the purchaser
at closing day. There are two parties to a deed: the grantor
and the grantee. (See also deed of trust. |
| Deed of
Trust |
In many states,
this document is used in place of a mortgage to secure the
payment of a note. |
| Default |
Failure to repay
a loan or otherwise meet the terms of your credit agreement. |
| Deferred
Interest |
Occurs when your
monthly payments are not large enough to pay all the interest
due on the loan. This unpaid interest is added to the unpaid
balance of the loan. The danger of deferring your interest
is that the buyer ends up owing more than the original amount
of the loan. Also called Negative Amortization. |
| Delinquency |
Failure to make
payments on time. This can lead to foreclosure. |
| Department
of Veterans Affairs (VA) |
An independent
agency of the federal government which guarantees long-term,
low- or no-down payment mortgages to eligible veterans. |
| Depreciation |
Decline in value
of a house due to wear and tear, adverse changes in the
neighborhood, or any other reason. |
| Depreciation
Fee or Charge |
A component of
the monthly lease payment that accounts for the value the
car loses during the term of the lease. Depreciation is
the difference between the vehicle's list price and the
projected residual value at the end of the lease. This figure,
divided by the number of months in the lease, determing
one part of the monthly fee; the lease charge is the other. |
| Destination
Charge |
The fee charged
for shipping, freight, or delivery of the vehicle to the
dealer from the manufacturer or port of entry. This charge
is to be passed on to the buyer without any markup. |
| Disclosures |
Information that
must be given to consumers about their financial dealings. |
| Discount
Points |
Additional points
you can pay a lender to lower the interest rate on your
loan at closing. Each point is equal to 1 percent of the
loan amount (e.g. two points on a $100,000 mortgage would
cost $2,000). Also referred to as Points. |
| Documentary
Stamps |
A State tax, in
the forms of stamps, required on deeds and mortgages when
real estate title passes from one owner to another. The
amount of stamps required varies with each State. |
| Documentation |
A list of documents
you will be required to provide when submitting a loan application.
The required documents range from w2's to a signed sales
contract. |
| Documentation
Class |
Category determined
by Loan Prospector to indicate the minimum level of documentation
you must obtain to underwrite the loan. The three possible
classes are: Accept Plus, Accept and Caution. |
| Down Payment |
The difference
between the loan amount and the purchase price, usually
paid immediately upon purchase with cash or a trade-in |
| Down Payment
and Fees |
Money paid to make
up the difference between the purchase price and mortgage
amount plus the closing cost fees to close the loan. |
| Due-On-Sale
Clause |
A provision in
a mortgage or deed of trust that allows the lender to demand
immediate payment of the balance of the mortgage if the
mortgage holder sells the home. |
| Duplex |
A dwelling divided
into two separate living units, either side-by-side with
a common wall or one above the other. |
Earnest Money |
Money given by
a buyer to a seller as part of the purchase price to bind
a transaction or assure payment. |
| Easement
Rights |
A right-of-way
granted to a person or company authorizing access to or
over the owner's land. An electric company obtaining a right-of-way
across private property is a common example. |
| Elderly
Applicant |
As defined in the
Equal Credit Opportunity Act, a person 62 or older. |
| Electronic
Fund Transfer (EFT) Systems |
A variety of systems
and technologies for transferring funds electronically rather
than by check. |
| Electronic
Payment |
A time saving payment
method where your loan payment is automatically deducted
from your checking or savings account. You may be able to
get a lower interest rate and you don't have to mail in
your payment each month. You may also be able to choose
your payment date. |
| Encroachment |
An obstruction,
building, or part of a building that intrudes beyond a legal
boundary onto neighboring private or public land, or a building
extending beyond the building line. |
| Encumbrance |
A legal right or
interest in land that affects a good or clear title, and
diminishes the land's value. It can take numerous forms,
such as zoning ordinances, easement rights, claims, mortgages,
liens, charges, a pending legal action, unpaid taxes, or
restrictive covenants. An encumbrance does not legally prevent
transfer of the property to another. A title search is all
that is usually done to reveal the existence of such encumbrances,
and it is up to the buyer to determine whether he wants
to purchase with the encumbrance, or what can be done to
remove it. |
| Equal Credit
Opportunity Act (ECOA) |
Is a federal law
that requires lenders and other creditors to make credit
equally available without discrimination based on race,
color, religion, national origin, age, sex, marital status
or receipt of income from public assistance programs. |
| Equity |
The difference
between the fair market value and current indebtedness,
also referred to as the owner's interest. |
| Equity
and Fees |
The difference
between the Fair Market Value and current indebtedness,
plus the Closing Cost Fees to close the loan. |
| Escrow |
Refers to a neutral
third party who carries out the instructions of both the
buyer and seller to handle all the paperwork of settlement
or "closing." Escrow may also refer to an account held by
the lender into which the homebuyer pays money for tax or
insurance payments. |
Fair market value |
The amount an article
(such as property or an automobile) would sell for on the
open market, barring any extenuating circumstances such
as a need to sell or buy quickly. The fair market value
for real estate is often determined by examining the range
of selling prices for similar homes in the current economic
climate. |
| Fannie
Mae |
A tax-paying corporation
created by Congress that purchases and sells conventional
residential mortgages as well as those insured by FHA or
guaranteed by VA. This institution, which provides funds
for one in seven mortgages, makes mortgage money more available
and more affordable. Also Referred to as Federal National
Mortgage Association. |
| Farmers
Home Administration (FmHA) |
Provides financing
to farmers and other qualified borrowers who are unable
to obtain loans elsewhere. |
| Federal
Home Loan Mortgage Corporation (FHLMC) |
Also called Freddie
Mac, is a quasi-governmental agency that purchases conventional
mortgages from insured depository institutions and HUD-approved
mortgage bankers. |
| Federal
Housing Administration (FHA) |
A division of the
Department of Housing and Urban Development. Its main activity
is the insuring of residential mortgage loans made by private
lenders. FHA also sets standard for underwriting mortgages. |
| Federal
National Mortgage Association (FNMA) |
Also known as Fannie
Mae. A tax-paying corporation created by Congress that purchases
and sells conventional residential mortgages as well as
those insured by FHA or guaranteed by VA. This institution,
which provides funds for one in seven mortgages, makes mortgage
money more available and more affordable. |
| FHA Loan |
A loan insured
by the Federal Housing Administration open to all qualified
home purchasers. While there are limits to the size of FHA
loans, they are generous enough to handle moderate-priced
homes almost anywhere in the country. |
| FHA Mortgage
Insurance |
Requires a small
fee (up to 3 percent of the loan amount) paid at closing
or a portion of this fee added to each monthly payment of
an FHA loan to insure the loan with FHA. On a 9.5 percent
$75,000 30-year fixed-rate FHA loan, this fee would amount
t o either $2,250 at closing or an extra $31 a month for
the life of the loan. In addition, FHA mortgage insurance
requires an annual fee of 0.5 percent of the current loan
amount, the more years the fee must be paid. |
| Finance
Charge |
The total dollar
amount credit will cost. |
| Finance
Contract |
A legal document
specifying the terms of a loan. |
| Financing
Concessions |
Funds originating
from an interested party to the transaction used to reduce
the mortgage interest rate, subsidize the borrower's monthly
payment, contribute to the financing charges (such as discount
points, loan fees, commitment and/or origination fees),
and pay borrower expenses (such as application fees, homeowner
association fees, appraisal fees, transfer taxes, tax stamps,
attorney fees, surveys, closing costs, and title insurance). |
| Fixed Rate
Mortgage |
A mortgage on which
the interest rate is set for the term of the loan. |
| Fixed Rate
Mortgages |
Characteristics
of a fixed rate mortgage: A rate that does not change during
the life of the loan. A consistent payment. Less risk because
of payment stability. |
| Float Period |
The float period
refers to the time between when you accept a loan and when
you lock-in your rate. During this time the interest rate
and points on your loan will fluctuate with the market until
you lock. |
| Foreclosure |
A legal procedure
in which property securing debt is sold by the lender to
pay a defaulting borrower's debt. |
| Freddie
Mac |
Is a quasi-governmental
agency that purchases conventional mortgages from insured
depository institutions and HUD-approved mortgage bankers.
Also Referred to as Federal Home Loan Mortgage Corporation. |
Gap Insurance |
A type of insurance
that covers the amount of money owed on a lease that is
not covered by standard auto insurance. Gap protection applies
only if the lease is terminated involuntarily and earlier
than maturity date of the lease because the leased auto
was stolen or significantly damaged in an accident. It's
important proection to have because the actual cash value
of the car paid by your standard auto insurance policy may
not be adequate to pay the payoff balance and early-termination
penalties of the lease. The protection shouldn't cost you
more than a few dollars a month. |
| General
Warranty Deed |
A deed which conveys
not only all the grantor's interests in and title to the
property to the grantee, but also warrants that if the title
is defective or has a "cloud" on it (such as mortgage claims,
tax liens, title claims, judgments, or mechanic's liens
against it) the grantee may hold the grantor liable. |
| Ginnie
Mae |
Provides sources
of funds for residential mortgages, insured or guaranteed
by FHA or VA.. Also referred to as Government National Mortgage
Association. |
| Government
National Mortgage Association (GNMA) |
Also known as Ginnie
Mae, provides sources of funds for residential mortgages,
insured or guaranteed by FHA or VA.. |
| Grace Period |
The amount of time
after a payment due date when no interest is charged. You
will frequently see grace periods of 20 to 30 days offered
by certain credit card issuers. Credit card grace periods
only apply if a cardholders previous month's balance was
paid in full. |
| Graduated
Payment Mortgage (GPM) |
A type of flexible-payment
mortgage where the payments increase for a specified period
of time and then level off. This type of mortgage has negative
amortization built into it. |
| Grantee |
That party in the
deed who is the buyer or recipient. |
| Grantor |
That party in the
deed who is the seller or giver. |
| Gross Monthly
Income |
The total amount
the borrower earns per month, before any expenses are deducted. |
| Gross Salary |
The total amount
of salary earned before taxes and other deductions are made.
Different than net pay or take home pay, which is the amount
of salary after taxes and other deductions are taken. Lenders
look at your gross and net pay to help decide how much money
to lend you. |
| Guarantee |
A promise by one
party to pay a debt or perform an obligation contracted
by another if the original party fails to pay or perform
according to a contract. |
Hazard Insurance |
A form of insurance
in which the insurance company protects the insured from
specified losses, such as fire, windstorm and the like. |
| Home equity |
The difference
between the market value of a home and any outstanding mortgage
balance. A person who has a $50,000 mortgage on a $150,000
home has accumulated $100,000 in home equity. |
| Home Equity
Line of Credit (HELOC) |
Secondary financing
that consists of a revolving line of credit secured by a
lien junior to a mortgage. |
| Home Equity
Loan |
A loan in real
estate property that is used to secure or guarantee the
amount borrowed. Sometimes referred to as a second mortgage
or borrowing against your home. The loan allows you to tap
into your home's built-up equity, which is the difference
between the amount your home could be sold for, and any
claims held against it. People often use a home equity loan
for home improvements or to pay for a new car. A home equity
loan is a good way to borrow money for two main reasons.
First, the interest rate is usually one of the lowest loan
rates a borrower can get. Also, the interest you pay on
the loan is usually tax-deductible. But taking out a home
equity loan also means the lender can take possession of
the home if the loan isn't repaid. This is why some people
decide to not borrow against their home, and may decide
to take out a personal loan. But for many borrowers, a home
equity loan can be the best loan option. Your best loan
option is the loan that best meets your needs. |
| Home Value
models |
Standard used to
derive data from millions of transactions; supported by
property values for hundreds of counties in all 50 states.
When you submit a conventional/conforming transaction, the
service automatically searches Home ValueSM models to determine
if it can support the value of the transaction, based on
the loan's overall risk profile. |
| Housing
Expenses-to-Income Ratio |
The ratio, expressed
as a percentage, which results when a borrower's housing
expenses are divided by his/her net effective income (FHA/VA
loans) or gross monthly income (Conventional loans). |
| HUD |
U.S. Department
of Housing and Urban Development. Office of Housing/Federal
Housing Administration within HUD insures home mortgage
loans made by lenders and sets minimum standards for such
homes. |
Impound |
That
portion of a borrower's monthly payments held by the lender
or servicer to pay for taxes, hazard insurance, mortgage
insurance, lease payments, and other items as they become
due. Also known as reserves. |
| Index |
A
published interest rate against which lenders measure the
difference between the current interest rate on an adjustable
rate mortgage and that earned by other investments (such
as one- three-, and five-year U.S. Treasury Security yields,
the monthly average interest rate on loans closed by savings
and loan institutions, and the monthly average Costs-of-Funds
incurred by savings and loans), which is then used to adjust
the interest rate on an adjustable mortgage up or down. |
| In-File
Credit Report |
Information
issued by one credit repository that contains an individual
credit history for you to review in determining a loan applicant's
creditworthiness. |
| Initial
Interest Rate |
The
initial interest rate is the rate you pay when you first
get your loan. On an ARM, this rate may be for 5 years (5/1
ARM) or only a month. |
| Inspection |
Concerning
autos, it's themechanical evaluation of aused autothat is
advised before buying the vehicle. The inspection should
be performed by an independent auto mechanic. |
| Installment
Debt |
Liability
that typically has a fixed interest rate, fixed term, and
equal payments amortized over a set number of months, agreed
upon by the lender and the borrower prior to disbursement. |
| Insurance |
A
type of legal relationship whereby individuals, companies
and other entities concerned about the risk of losses pay
premiums to an insurance company for protection against
potential losses. Specific types of insurance relevant to
vehicles include collision, comprehensive, uninsured motorist,
underinsured motorist, rental reimbursement, and vehicle-related
accident insurance. |
| Insurance
Premium |
The
amount you must pay at specified intervals (e.g. monthly
or semi-annually) to the insurance company to guarantee
coverage from losses. The premium amount is calculated using
various risk factors, which vary according to the type of
insurance you are seeking. |
| Interest |
A
charge paid for borrowing money. Interest is usually expressed
as a percentage of the amount borrowed or interest rate. |
| Interest
Cost |
Interest
cost shows how much you will pay in interest over the life
of the loan, assuming you keep the loan for the entire period. |
| Interest
Due |
Interest
due is the portion of the mortgage payment that goes toward
interest. When you close on your home, you will usually
owe interest for the time between your closing date and
when you make your first payment. |
| Interest
Rate |
The
annual rate of interest on the loan, expressed as a percentage
of 100. |
| Interest
Rate Adjustment Period |
The
interest rate adjustment period is how often your rate is
adjusted on an ARM after the initial rate period is over.
For example, a 5/1 ARM means you have an initial rate period
of 5 years that is fixed and then after 5 years, your rate
changes every year. |
| Interest
Rate Ceiling |
The
interest rate ceiling is the highest interest rate possible
under an ARM. You may hear this called the lifetime cap
and it based on the number of percentage points your rate
can increase from your initial rate. |
| Interest
Rate Decrease Cap |
An
interest rate decrease cap is the maximum allowable decrease
in your interest rate (on an ARM) each time your rate is
adjusted. It is usually 1 or 2 percentage points. If rates
go down 4% your rate may only go down 2% due to the cap. |
| Interest
Rate Floor |
The
rate floor is the lowest interest rate possible under an
ARM loan. |
| Interest
Rate Increase Cap |
The
interest rate increase cap is the maximum allowable increase
in your interest rate (on an ARM) each time your rate is
adjusted. It is usually 1 or 2 percentage points. For example,
if your rate adjusts every year, each year it cannot exceed
the stated cap. |
| Interest
Rate Index |
The
interest rate index is the specific fund/security that your
interest rate on an ARM is tied to. Common indexes are Treasury
Constant Maturities or Cost of Funds indices. All the indices
are published regularly in readily available sources. |
| Intro
Period |
The
timeframe in which a special intro rate may be in effect.
After the intro period ends, the interest rate will usually
increase. |
| Intro
Rate |
Introductory
rates are usually set below normal interest rates and may
be offered only for a short period at the beginning of the
loan or credit line. Lenders may use this special rate to
attract borrowers. After a set timeframe, the interest rate
will usually increase. |
| Investor |
Money
source for a lender. |
| Invoice
Price |
The
manufacturer's initial charge to the dealer including freight,
destination, or delivery charges. This price may not reflect
the dealer's final cost due to rebates, allowances, discounts,
and incentive awards the dealer may receive. To give you
the negotiating advantage when buying a new auto, do your
research. Find out the invoice price, and try to negotiate
a purchase price that's close to the invoice price. Often
a buyer will pay $100 to $300 over invoice, and both dealer
and buyer will be happy. To negotiate an even better deal,
find out if the manufacturer is currently offering any incentives
to the dealer. If such incentives exist, you may get the
dealer to take more money off the sales price by passing
on at least some of the incentive to you. Autos that are
in high demand and short supply will probably be sold close
to, at, or even above the Manufacturer's Suggested Retail
Price (MSRP). This is the invoice price plus the cost of
add-ons as determined by the dealer. |
Joint Account |
A
credit account held by two or more people so that all can
use the account and all assume legal responsibility to repay. |
| Jumbo
Loan |
A
loan which is larger (more than $417,000) than the limits
set by the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation. Because jumbo loans
cannot be funded by these two agencies, they usually carry
a higher interest rate. |
Late Payment |
A
payment made later than agreed upon in a credit contract
and on which additional charges may be imposed. |
| Lease |
A
means of acquiring the use of the vehicle for a specific
period of time in exchange for regular payments without
actually purchasing it. As part of leasing agreement, the
company leasing the vehicle maintains ownership. During
the lease, the lessee or the person leasing the auto is
responsible for its reasonable maintanence. The auto is
returned to the company when the lease expires unless the
lessee decides to buy the car, assuming the lease contract
allows for that option. |
| Lease
Buy Out |
In
auto leasing, the option to buy a leased auto usually during
the life of a lease or when the lease ends. You have an
option to buy out the lease only if you have an open-end
lease, which is better than a closed-end lease. Also called
an option to buy. |
| Lease
Fee |
The
cost of leasing the vehicle. It equals the monthly lease
payment multiplied by the lease term. See also capitalized
cost and residual value. |
| Lender |
Company
that performs the functions necessary to complete a mortgage
transaction. Lenders include approved sellers, mortgage
brokers, and third-party originators (TPOs). |
| Lender
Fees |
These
are items payable in connection with the loan and contribute
to the total amount of the loan's closing costs. These are
the fees that lenders charge to process, approve and make
the mortgage loan. See Closing Costs for more information. |
| Lessee |
A
person who signs a lease to get temporary use of property. |
| Lessor |
A
company that provides temporary use of property usually
in return for periodic payment. |
| Liability
on an Account |
Legal
responsibility to repay debt. |
| Lien |
A
claim upon a piece of property for the payment or satisfaction
of a debt or obligation. |
| Line
of credit |
A
type of revolving credit account that allows you to borrow
money, pay it back and then borrow again, as long as you
don’t exceed the preset credit limit. Interest is charged
only on the amount borrowed. As you repay the balance, the
amount repaid becomes available to borrow again. |
| Liquid
Assets |
Cash
or assets that can be immediately converted to cash |
| List
Price |
Another
term for manufacturer's suggested retail price or sticker
price. List price is the recommended selling price for a
vehicle and each of its optional accessories as defined
by the manufacturer. |
| Loan
Amount |
The
amount of debt not including interest. |
| Loan
Program |
Defines
the scope of your mortgage, including the type of interest
rate you have and the mortgage term. For example, your loan
program may be for 30 years with a fixed rate or may be
for 5 years with an adjustable rate. |
| Loan
terms |
Different
requirements of a loan that determine the borrower's and
lender's financial obligations. Common terms are Annual
Percentage Rate (APR), principal, and length of loan. Usually,
the better the borrower's credit history, the better the
loan terms. A good combination of loan terms is simple interest,
a low APR and no prepayment penalties. |
| Loan-To-Value
Ratio |
The
relationship between the amount of the mortgage loan and
the appraised value of the property expressed as a percentage. |
| Lock
Period |
A
lock period refers to the amount of time prior to closing
that you can secure an interest rate for your loan. Generally,
lock periods range from 30 days to over 90 days. Generally,
the longer the lock period, the more you pay in points or
interest. If your loan is "lockable", your Lender will identify
the available lock period. |
| Lockable |
You
can "lock in" the current interest rate for a set length
of time, usually 30, 45 or 60 days. By "locking in" a rate
the interest rate is locked and if interest rates increase,
your "locked in" rate will not change. To lock an interest
rate, you must enter into a written agreement with your
Lender. |
| Lock-In |
A
commitment you obtain from a lender assuring you a particular
interest rate or feature for a definite time period. Provides
protection should interest rates rise between the time you
apply for a loan, acquire loan approval and close the loan
and receive the funds you have borrowed. |
Manufacturer Suggested Retail Price (MSRP) |
It
represents the manufacturer's recommended selling price
for a vehicle and each of its options. |
| Manufacturer's
Rebate |
A
program offered directly to the buyer by manufacturers to
increase the sales of slow-selling models or to reduce excess
inventories. |
| Margin |
The
amount a lender adds to the index on an adjustable rate
mortgage to establish the adjusted interest rate. |
| Market
Value |
The
highest price that a buyer would pay and the lowest price
a seller would accept on a property. Market value may be
different from the price a property could actually be sold
for at a given time. |
| Marketable
Title |
A
title that is free and clear of objectionable liens, clouds,
or other title defects. A title which enables an owner to
sell his property freely to others and which others will
accept without objection. |
| Mark-up |
The
amount of profit received by the dealer on each car. Mark-up
can be calculated by subtracting the selling price from
the invoice price. |
| Material
Debt |
Liability
that is substantial. The debt results from a recent inquiry
and could affect the ratios used to make a decision on the
loan. |
| Maximum
loan amount |
The
greatest amount of money that a borrower is qualified to
borrow. |
| Merged
Credit Reports |
Information
issued by one credit reporting company that receives credit
history information from more than one credit repository
and combines all of it into one concise format. May be individual
or joint. |
| Minimum
Down Payment |
Minimum
down payment is the amount of money you are required to
put down at closing. If the minimum is 10%, you must make
a down payment of at least $10,000 on a $100,000 house. |
| Money
Factor |
This
number is set by the lessor and can vary from company to
company. This is how the lessor determines their profit.
It is a fractional number, such as .0042, and is used to
calculate the lease fee, by multiplying it by the sales
price of the vehicle you are leasing. The monthly payment
combines the resulting fee with the depreciation charge.
Consumers should look for a lower money factor number. While
lessors are not required by Regulation M to disclose the
money factor, you can still insist on knowing it before
entering a lease. |
| Monroney
Sticker Price |
Required
by federal law, this label affixed to the car window shows
the base price, the manufacturer's installed options with
the manufacturer's suggested retail price, the manufacturer's
freight or transportation charge, and the fuel economy (mileage).
The label may not be removed by anyone other than the purchaser. |
| Monthly
Payment |
The
amount paid each month towards the principal and interest
amount of a loan. The monthly payment may or may not include
taxes and insurance. |
| Monthly
Payment (P&I) |
The
monthly payment amount shown includes only principal and
interest. When comparing with other offers please take this
into consideration. |
| Mortgage |
A
lien or claim against real property given by the buyer to
the lender as security for money borrowed. Under government-insured
or loan-guarantee provisions, the payments may include escrow
amounts covering taxes, hazard insurance, water charges,
and special assessments. Mortgages generally run from 10
to 30 years, during which the loan is to be paid off. |
| Mortgage
(Open-End) |
A
mortgage with a provision that permits borrowing additional
money in the future without refinancing the loan or paying
additional financing charges. Open-end provisions often
limit such borrowing to no more than would raise the balance
to the original loan figure. |
| Mortgage
Broker |
A
person or entity that specializes in loan originations,
receiving a commission to match borrowers and lenders. The
Mortgage Broker performs some or most of the loan processing
functions such as taking loan applications, ordering credit
reports, appraisals, and title reports. Typically the Mortgage
Broker does not underwrite the loan and generally does not
use its own funds for closing. The Mortgage is generally
closed in the name of the lender who commissioned the broker's
services. A Mortgage Broker will not service the Mortgage.
An entity or individual engaged to handle or perform, for
a Seller or correspondent, part of the mortgage application
processing, underwriting, funding or postclosing functions,
but not any activities related to obtaining an application
for a wholesale origination. This entity is typically paid
on a fee basis for services performed, with the payment
of fees not being contingent on Mortgage approval or closing. |
| Mortgage
Commitment |
A
written notice from the bank or other lending institution
saying it will advance mortgage funds in a specified amount
to enable a buyer to purchase a house. |
| Mortgage
Insurance |
Money
paid to insure the mortgage when the down payment is less
than 20 percent. |
| Mortgage
Insurance Premium |
The
payment made by a borrower to the lender for transmittal
to HUD to help defray the cost of the FHA mortgage insurance
program and to provide a reserve fund to protect lenders
against loss in insured mortgage transactions. In FHA insured
mortgages this represents an annual rate of one-half of
one percent paid by the mortgagor on a monthly basis. |
| Mortgage
Note |
A
written agreement to repay a loan. The agreement is secured
by a mortgage, serves as proof of an indebtedness, and states
the manner in which it shall be paid. The note states the
actual amount of the debt that the mortgage secures and
renders the mortgagor personally responsible for repayment. |
| Mortgagee |
The
lender. |
| Mortgagor |
The
borrower or homeowner. |
| Multiple
Listing Service (MLS) |
a
computer database that compiles information on houses listed
for sale in a particular area by participating real estate
agents. It is maintained and accessed by agents who use
the listings to match their clients' needs with property
descriptions on the database. |
Negative Amortization |
Occurs
when your monthly payments are not large enough to pay all
the interest due on the loan. This unpaid interest is added
to the unpaid balance of the loan. The danger of negative
amortization is that the buyer ends up owing more than the
original amount of the loan. |
| Net
Effective Income |
The
borrower's gross income minus federal income tax. |
| Net
Pay |
The
amount of salary left or clear after taxes and other deductions
are taken. Different than gross pay, which is the amount
of salary earned before income is taxed and other deductions
are taken. Lenders look at your gross and net pay to help
decide how much money to lend you. |
| No-Doc
Mortgage |
A
no-documentation or "no-doc" mortgage is a product that
certain lenders offer to borrowers which generally requires
a down payment of at least 5% to 30% or more of the home
purchase price or who generally have at least 25% equity
in their home. Loan programs featuring lower down payments
(5-24%) are also available to borrowers with excellent credit.
No-doc mortgages are generally a wise choice for self-employed
people, those who do not wish to verify their income, and
those with a brief or blemished credit history, or no credit.
The benefits of a no-doc mortgage include a shorter application
process since you are not required to provide income, employment
or asset documentation, as well as a streamlined approval
process through the lender because there is little subsequent
verification. However, no doc mortgages generally will be
at slightly higher interest rates and are offered by fewer
lenders. |
| Non-Assumption
Clause |
A
statement in a mortgage contract forbidding the assumption
of the mortgage without the prior approval of the lender. |
| Non-Conforming
Loan |
A
conventional home mortgage that does not meet the criteria
of Fannie Mae or Freddie Mac for various reasons including
loan amount, loan characteristics or underwriting guidelines.
Non-Conforming loans usually incur a higher rate and/or
points. |
| Normal
wear and tear |
The
reasonable condition of an auto assuming its age, mileage
and proper maintenance. |
Offer Expires |
The
expiration date of a credit card offer. After an offer expires,
you might not be eligible to take advantage of the terms
the card issuer extended to you. |
| Open-End
Credit |
A
line of credit that may be used over and over again, including
credit cards, overdraft credit accounts, and home equity
lines. |
| Open-End
Lease |
A
lease which requires the lessee (the person leasing the
auto) to pay any difference between the residual value of
the auto and the fair market value of the auto at the end
of the lease. The risk of paying depreciation greater than
anticipated and stated in the lease at the time of the lease
negotiation is assumed by the the lessee, not the lessor
(or company leasing the car). Also see close-end lease,
which is the better of the two kinds of leases to have. |
| Option
To Buy |
In
auto leasing, the option to buy a leased auto usually during
the life of a lease or when the lease ends. You have an
option to buy the leased auto only if you have an open-end
lease, which is better than a closed-end lease. Also called
a lease buy-out. |
| Origination
Fee |
A
fee commonly charged by a lender for processing a loan application.
The origination fee may be presented in the form of points
or a dollar amount. Each point is equal to 1 percent of
the loan amount (e.g. two points on a $100,000 mortgage
would cost $2,000). |
| Other |
Because
of the large number of lenders in the LendingTree network,
we cannot possibly list all of the available products. Selecting
this option allows the lenders to offer you the product
they think best fits your situation. |
| Overdraft
Checking |
A
line of credit that allows you to write checks or draw funds
by means of an EFT card for more than your actual balance,
with an interest charge on the overdraft. |
| Owner
financing |
Where
the seller lends all or part of the purchase price to the
buyer. The seller effectively becomes the lender. |
Personal Loan |
An
unsecured loan, which means a borrower does not put up any
collateral or security to guarantee the repayment of the
loan. For this reason, personal loans carry high interest
rates. If a borrower owns a home, a lower-interest-rate
alternative is a home-equity loan. But this option requires
that the borrower put up his or her home or other real estate
property as collateral. Your best loan option is the loan
that best meets your needs. |
| Piggyback
Loan |
An
alternative to private mortgage insurance, also known as
a second trust loan. The most common type is an 80/10/10
where a first mortgage is taken out for 80% of the home’s
value, a down payment of 10% is made and another 10% is
financed in a second trust at a higher interest rate. In
some cases, you may even qualify for a piggyback loan with
as little as a 5% down payment |
| PITI |
Principal,
interest, taxes, and insurance. Also called monthly housing
expense. |
| Plat |
A
map or chart of a lot, subdivision or community drawn by
a surveyor showing boundary lines, buildings, improvements
on the land, and easements. |
| Point-of-Sale
(POS) |
A
method by which consumers can pay for purchases by having
their deposit accounts debited electronically without the
use of checks. |
| Points |
Additional
points you can pay a lender to lower the interest rate on
your loan at closing. Each point is equal to 1 percent of
the loan amount (e.g. two points on a $100,000 mortgage
would cost $2,000). Also referred to as Discount Points.
Points may include discount points and/or origination fee. |
| Power
of Attorney |
A
legal document authorizing one person to act on behalf of
another. |
| Pre-approved
Loan |
A
loan the lender issues to the borrower before buying the
auto. These loans are usually valid for a limited time only,
such as 30 days from the loan approval date. To give yourself
the negotiating advantage, always get a pre-approved loan.
Have a pre-approved loan check draft with you when you walk
into a dealer, or go to test drive a used car that's for
sale by an individual owner. Why? First, having a pre-approved
loan gives you the negotiating power of a cash buyer who
the seller views as ready to buy the right auto at the right
price. Also, dealers make approximately half of their money
through financing for the autos they sell. It usually always
pays to shop for a loan, and get pre-approved for loan.The
best loan option is the loan that best meets your needs. |
| Pre-approved
mortgage |
Getting
pre-approved for a mortgage requires that you complete a
mortgage application and supply a lender with all the necessary
documentation to check your financial background and credit
rating. You will then be told the exact mortgage amount
for which you are approved. This enables you to make an
offer on a home that is not contingent upon obtaining financing.
|
| Pre-paid
Items |
Pre-paid
items are amounts that are required by the Lender to be
paid in advance of their due date at settlement. You may
be required to prepay certain items at the time of settlement,
such as accrued interest, mortgage insurance premiums and
hazard insurance premiums. Pre-paid items contribute to
the total amount of the loan's closing costs. See Closing
Costs for more information. Note: You will only see per-diem
interest under this category on our site. For some lenders
you will see insurance premiums under this category also;
we have categorized our insurance premiums under the Escrow
Deposits. |
| Prepaids |
Expenses
necessary to create an escrow account or to adjust the seller's
existing escrow account. Can include taxes, hazard insurance,
private mortgage insurance and special assessments. |
| Preparation
Charges |
Charges
imposed by a dealer for preparing a newly purchased car
for delivery to the buyer. Includes filling the gas tank,
verifying appropriate fluid levels, last minute touchup
cleaning, etc. |
| Prepayment |
A
privilege in a mortgage permitting the borrower to make
payments in advance of their due date. |
| Prepayment
Premium |
Money
charged for an early repayment of debt. Prepayment premiums
are allowed in some form (but not necessarily imposed) in
36 states and the District of Columbia. |
| Prequalification |
Occurs
when a lender estimates what size loan, usually a mortgage,
you can afford. A prequalification estimate is non-binding,
unlike pre-approval, which is an actual agreement to make
the loan. |
| Prime
Rate |
The
interest rate charged by lenders to their best, most creditworthy
customers. A less credit worthy customer may be offered
a loan at the prime rate plus anywhere from 2 to 10 percent.
Borrowing at below-prime also occurs, but is less common
and usually applies to businesses, not individual consumers.
The Federal Reserve determines whether to lower or raise
the prime rate based on a variety of economic factors. Many
consumer loans, such as auto, home equity, mortgage and
credit card loans are based upon the prime rate. Building
and maintaining a good credit history are two of the most
important qualifications for prime-rate borrowing. |
| Principal |
The
amount of debt, not counting interest, left on a loan. |
| Private
Mortgage Insurance (PMI) |
In
the event that you do not have a 20 percent down payments,
lenders will allow a smaller down payment-as low as 5 percent
in some cases. With the smaller down payments loans, however,
borrowers are usually required to carry private mortgage
insurance. Private mortgage insurance will require an initial
premium payment of 1.0 percent to 5.0 percent of your mortgage
amount and may require an additional monthly fee depending
on your loan's structure. On a $75,000 house with a 10 percent
down payments, this would mean either an initial premium
payment of $2,025 to $3,375, or an initial premium of $675
to $1,130 combined with a monthly payment of $25 to $30. |
| Processing |
Processing
are the steps a lender takes with your loan application
to gather your information for underwriting. Processing
involves building your file of information for your loan.
Processing includes getting the credit report, appraisal,
verification of employment, assets, etc. |
| Purchase
agreement |
The
contract for the purchase of a home, signed by the buyer
and seller, containing the agreed upon price and any other
conditions. |
| Purchase
option |
Typically,
the option to buy a leased auto usually during the life
of a lease (lease buy out) or when the lease ends. |
Q-form |
A
Q-form is series of questions that you complete in order
to request a loan. What does the Q stand for? You choose
- quality, quick, qualification, questionnaire. Our unique
Q-forms have been designed by LendingTree specifically for
the Internet to make your experience as easy as possible. |
| Qualification |
Qualification
is the initial process to see if you have enough cash and
sufficient income to meet the requirements of the lender
for a loan you want. Qualification is not an approval because
it does not include your credit history. Qualified borrowers
can be turned down if they have poor credit history. |
| Qualification
Ratios |
Qualification
ratios are set by the lender that state your housing expense
to income, and housing expense plus other debts to income,
cannot exceed a specified number. Many lenders use a 28%
housing expense to income and a 36% housing expense plus
debts to income. Other ratios may be how much you put down
on a home. |
| Quitclaim
Deed |
A
deed which transfers whatever interest the maker of the
deed may have in the particular parcel of land. A quitclaim
deed is often given to clear the title when the grantor's
interest in a property is questionable. By accepting such
a deed the buyer assumes all the risks. Such a deed makes
no warranties as to the title, but simply transfers to the
buyer whatever interest the grantor has. |
Rate |
In
lending, the amount of interest on the loan expressed as
an interest rate or annual percentage rate (APR) of the
principal. |
| Rate
and term refinancing |
A
refinancing option in which the principal of the mortgage
remains the same and only the interest rate, term and other
features are adjusted. |
| Rate
Cap Insurance |
Rate
cap insurance limits how much the interest rate can increase
during the float period (usually no more than .5%). For
example, if you get the insurance when the rate is 7.5%,
you will be guaranteed that the rate will not go above 8%.
This protects you from uncertainty in the market and rising
rates. With the insurance you will be told that you can
lock-in a rate, usually within 60 days of closing. You can
also lock if the rate goes lower. |
| Rate/Point
Options |
These
options are all the combinations of interest rate and points
that are offered on a particular loan. Usually you will
find that paying more points lowers interest rates. |
| Real
Estate Broker |
A
middle man or agent who buys and sells real estate for a
company, firm, or individual on a commission basis. The
broker does not have title to the property, but generally
represents the owner. |
| Real
Estate Settlement Procedures Act (RESPA) |
RESPA
is a federal law that allows consumers to review information
on known or estimated settlement costs once after application
and once prior to or at settlement. The law requires lenders
to furnish information after application only. |
| Realtor® |
A
real estate broker or an associate holding active membership
in a local real estate board affiliated with the National
Association of Realtors. |
| Rebate |
An
incentive paid by the manufacturer to the customer as a
way to increase sales of products. For example, slow-selling
vehicles or previous-year models still in the dealer's inventory
may feature this type of incentive to sell faster than they
have been. Typically a rebate can be applied to the cost
of the vehicle or received in cash by the customer. Instead
of the rebate, the buyer is often offered special dealer
financing. Often, taking the rebate is the better deal. |
| Recision |
The
cancellation of a contract. With respect to mortgage refinancing,
the law that gives the homeowner three days to cancel a
contract in some cases once it is signed if the transaction
uses equity in the home as security. |
| Recording
Fees |
Money
paid to the lender for recording a home sale with the local
authorities, thereby making it part of the public records. |
| Refinancing |
The
process of the same mortgagor paying off one loan with the
proceeds from another loan. |
| Regulation
M |
The
Federal Reserve Board's Consumer Leasing Act, which requires
full disclosure of all leasing costs. It took effect Jan.
1, 1998. |
| Renegotiable
Rate Mortgage (RRM) |
A
loan in which the interest rate is adjusted periodically.
Sometimes referred to as Adjustable Rate Mortgage. |
| Repossession |
Due
to a default on or failure to pay the loan, the lender,
or someone acting on the lender's behalf, takes possession
of the vehicle. |
| Required
Cash |
Required
cash is the total cash required for you to close the loan.
This cash goes towards down payment, points, and other charges
paid to the lender. It also goes towards up-front charges
for things like mortgage insurance and other settlement
charges associated with the transaction such as title insurance,
taxes, etc. Your good faith estimate will show how much
cash you need for closing. |
| Reserves |
Verified
liquid assets remaining after the borrower pays down payment
and closing costs. |
| Residential
Mortgage Credit Report (RMCR) |
Detailed
account of the credit, employment, and residence history,
as well as public-record information, concerning an individual. |
| Residual
Value |
The
amount mutually agreed upon between lessor and leasee to
represent the value of the car at the end of a lease. This
value is usually determined by the amount of depreciation
in the car's value predicted during the term of the lease. |
| Restrictive
Covenants |
Private
restrictions limiting the use of real property. Restrictive
covenants are created by deed and may "run with the land,"
binding all subsequent purchasers of the land, or may be
"personal" and binding only between the original seller
and buyer. The determination whether a covenant runs with
the land or is personal is governed by the language of the
covenant, the intent of the parties, and the law in the
State where the land is situated. Restrictive covenants
that run with the land are encumbrances and may affect the
value and marketability of title. Restrictive covenants
may limit the density of buildings per acre, regulate size,
style or price range of buildings to be erected, or prevent
particular businesses from operating or minority groups
from owning or occupying homes in a given area. (This latter
discriminatory covenant is unconstitutional and has been
declared unenforceable by the U.S. Supreme Court.) |
| Retail
Blue Book Value |
The
resale value of an auto that is identified in the Kelley
Blue Book. It's the amount of money that is commonly charged
for a similar used vehicle by a dealership or private seller.
See also black book value. |
| Retail
Price |
The
amount the buyer pays to the dealership. Distinguished from
wholesale price. |
| Reverse
Annuity Mortgage (RAM) |
A
form of mortgage in which the lender makes periodic payments
to the borrower using the borrower's equity in the home
as security. |
| Revolving
Debt |
Debt
that typically has a variable interest rate, an open-ended
term, and payments that are based on a percentage of the
balance. The debt has a set limit agreed upon by the lender
and borrower. |
| Risk
Grade |
Assessment
of a loan's relative risk with respect to its probability
of default. Risk Grade Evaluation quantifies the risk by
assigning a grade from RG1 (highest quality) to RG7 (lowest
quality). |
Sales Concession |
Incentive
to purchase a property, such as vacations, furniture, automobiles,
and securities, and/or excess finance concessions. Also,
other giveaways granted by any interested party, including
financing inducements that may be over limitations set forth
in the definition of financing concessions (to-be sales). |
| Second
Home |
One-unit
property owned by an individual, occupied by the borrower
for some portion of the year, and not subject to any timesharing
ownership arrangement. The property must be in a location
where it can function reasonably as a second home. |
| Second
Trust Loan |
An
alternative to private mortgage insurance, also known as
a “piggyback loan.” The most common type is an 80/10/10
where a first mortgage is taken out for 80% of the home’s
value, a down payment of 10% is made and another 10% is
financed in a second trust at a higher interest rate. In
some cases, you may even qualify for a second trust loan
with as little as a 5% down payment. |
| Secured
Debt |
Money
borrowed that is guaranteed (or secured) by the borrower's
funds and held by the lender in an interest-bearing account.
Typically required when a borrower is without credit or
has poor credit. The lender usually returns the secured
money plus a nominal rate of earned interest to the borrower
with a certain period of time if a good credit history is
established. Distinguished from unsecured debt. |
| Security |
Property
pledged to the creditor in case of a default on a loan;
also referred to as collateral. |
| Security
Interest |
The
creditor's right to take property or a portion of property
offered as security. |
| Self-Employed
Borrower |
Applicant
who owns 25 percent or more interest in a business. |
| Service
Charge |
A
component of some finance charges, such as the fee for triggering
an overdraft checking account into use. |
| Servicing |
All
the steps and operations a lender perform to keep a loan
in good standing, such as collection of payments, payment
of taxes, insurance, property inspections and the like. |
| Settlement |
The
meeting between the buyer, seller and lender where the property
and funds legally change hands. Also referred to as Closing. |
| Settlement
Costs |
Includes
a loan origination fee, points, appraisal fee, title search
and insurance, survey, taxes, deed recording fee, credit
report charge and other costs assessed at settlement. The
closing costs usually are about 2 percent to 6 percent of
the mortgage amount. |
| Shared
Appreciation Mortgage (SAM) |
A
mortgage in which a borrower receives a below-market interest
rate in return for which a lender (or another investor such
as a family member or other partner) receives a portion
of the future appreciation in the value of the property.
May also apply to mortgages where the borrower shares the
monthly principal and interest payments with another party
in exchange for a part of the appreciation. |
| Simple
Interest |
Interest
that is paid on the principal amount borrowed. Considered
the best interest term for a borrower because it is not
compounded. |
| Special
Assessments |
A
special tax imposed on property, individual lots or all
property in the immediate area, for road construction, sidewalks,
sewers, streetlights, etc. |
| Special
Lien |
A
lien that binds a specified piece of property, unlike a
general lien, which is levied against all one's assets.
It creates a right to retain something of value belonging
to another person as compensation for labor, material, or
money expended in that person's behalf. In some localities
it is called "particular" lien or "specific" lien. Also
see lien. |
| Special
Warranty Deed |
A
deed in which the grantor conveys title to the grantee and
agrees to protect the grantee against title defects or claims
asserted by the grantor and those persons whose right to
assert a claim against the title arose during the period
the grantor held title to the property. In a special warranty
deed the grantor guarantees to the grantee that he has done
nothing during the time he held title to the property which
has, or which might in the future, impair the grantee's
title. |
| Sticker
Price |
Another
term for manufacturer's suggested retail price or list price.
List price is the recommended selling price for a vehicle
and each of its optional accessories as defined by the manufacturer. |
| Subprime
borrower |
An
individual with a less-than-perfect credit rating. Lenders
will usually charge subprime borrowers a slightly higher
interest rate on loans as they are viewed as having a greater
risk of defaulting. |
| Subprime
loan |
A
loan offered to people who do not qualify for a conventional
loan, either because of low income, a high loan-to-value
ratio, or poor credit history. Generally carries a higher
interest rate than a conventional loan. |
| Subprime
mortgage |
A
mortgage granted to a subprime borrower (an individual with
less-than-perfect credit). The interest rate charged is
slightly higher than the prime rate obtainable by those
with a good credit rating. |
| Survey |
A
measurement of land, prepared by a registered land surveyor,
showing the location of the land with reference to known
points, its dimensions, and the location and dimensions
of any building. |
Tax |
As
applied to real estate, an enforced charge imposed on persons,
property or income, to be used to support the State. The
governing body in turn utilizes the funds in the best interest
of the general public. |
| Tax
Assessed Value |
The
Tax Assessed Value (TAV) is the dollar amount assigned to
your property for the purposes of taxation. The TAV is not
necessarily the market value of your home, but the TAV will
take into consideration your home's market value, as well
other factors, including your property's tax class, maintenance
costs, home improvements, etc. The TAV is established by
the county's tax assessor who utilizes features such as
sales prices from surrounding properties, location, condition
and age of the property to determine the TAV. |
| Term |
The
period of time between the beginning loan date on the legal
documents and the date the entire balance of the loan is
due. |
| Term
Mortgage |
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 specific time. Also
known as Balloon Payment Mortgage. |
| Third
Party Fees |
These
are fees charged by vendors to perform services related
to your loan, such as title search, mortgage recording and
settlement. Third party fees contribute to the total amount
of the loan's closing costs. See Closing Costs for more
information. |
| Title |
A
document that gives evidence of an individual's ownership
of property. |
| Title
Insurance |
A
policy, usually issued by a Title Insurance company, which
insures a homebuyer against errors in the title search.
The cost of the policy is usually a function of the value
of the property, and is often borne by the purchaser and/or
seller. |
| Title
Search |
An
examination of municipal records to determine the legal
ownership of property. Usually is performed by a title company. |
| Trade-in
value |
The
value placed on a used car when returned to a dealer, which
the dealer will then credit you towards the purchase of
another vehicle. |
| Treasury
Index |
These
ARMs are indexed to treasury bills or securities. Depending
on the ARM, the rate will adjust every 6 months, every year,
or every 3 years. |
| Trustee |
A
party who is given legal responsibility to hold property
in the best interest of or "for the benefit of" another.
The trustee is one placed in a position of responsibility
for another, a responsibility enforceable in a court of
law. |
| Truth-in-Lending |
A
federal law requiring disclosure of the Annual Percentage
Rate to homebuyers shortly after they apply for the loan. |
| Two-Step
Mortgage |
A
mortgage in which the borrower receives a below-market interest
rate for a specified number of years (most often seven or
10 years), and then receives a new interest rate adjusted
(within certain limits) to market conditions at that time.
The lender sometimes has the option to call the loan, due
within 30 days notice at the end of seven or 10 years. Also
called "Super Seven" or "Premier" mortgage. |
Underwriting |
The
analysis of the risk involved in making a mortgage loan
to determine whether the risk is acceptable to the lender.
Underwriting involves the evaluation of the property as
outlined in the appraisal report, and of the borrower's
ability and willingness to repay the loan. |
| Unsecured
debt |
Debt
without collateral to back the loan in case of default.
Generally carries a higher interest rate than secured debt.
|
| Upside-down
loan |
A
loan secured by collateral that has depreciated in market
value and is worth less than the balance owed. For example,
if you owe $5,000 on your car, but the car is worth only
$4,000, the loan is upside down. |
VA Loan |
Mortgage
loan made by an approved lender and guaranteed by the Department
of Veterans Affairs. VA loans are made eligible to veterans
and those currently serving in the military, and can have
lower down payment than other types of loans. |
| VA
Mortgage Funding Fee |
A
premium of up to 2 percent (depending on the size of the
down payment) paid on a VA-backed loan. On a $75,000 30-year
fixed-rate mortgage with no down payment, this would amount
to $1,406 either paid at closing or added to the amount
financed. |
| Variable
Rate Mortgage (VRM) |
See
Adjustable Rate Mortgage. |
| Verification
of Deposit (VOD) |
A
document signed by the borrower's financial institution
verifying the status and balance of his/her financial accounts. |
| Verification
of Employment |
A
document signed by the borrower's employer verifying his/her
position and salary. |
Waiver |
Relaxing
a requirement pertaining to the eligibility of a loan. Waivers
may include permitting less documentation than would otherwise
be required. |
| Walk-through |
The
final inspection done by a buyer, usually just before closing,
to ensure that the property is as expected and any agreed-upon
repairs have been made. |
| Wholesaler |
A
wholesaler is a lender that provides loans to borrowers
through mortgage brokers or correspondents. The mortgage
broker or correspondent works with you and gets your application. |
| Wraparound |
Results
when an existing assumable loan is combined with a new loan,
resulting in an interest rate somewhere between the old
rate and the current market rate. The payments are made
to a second lender or the previous homeowner, who then forwards
the payments to the first lender after taking the additional
amount off the top. |
Zoning Ordinances |
The
acts of an authorized local government establishing building
codes, and setting forth regulations for property land usage. |
