Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| Conventional Qualifying Ratios |
|
Definition
|
|
Term
|
Definition
| Borrower retains title to Property, lender, mortgagee, places a lien to secure payment of the mortgage debt. |
|
|
Term
|
Definition
Title is conveyed to the lender through a mortgage deed.
Borrower retains equitable title to the property. |
|
|
Term
|
Definition
AKA Mortgage Note.
Legal instrument that represents evidence of a debt.
Separate legal instrument that must be signed by borrower.
Usually not recoreded. |
|
|
Term
|
Definition
| Instrument that pledges the property as security for a debt. |
|
|
Term
|
Definition
Pledging of property as security for payment of a lona without surrendering possession of the property.
Mortgage is recoreded to establish constructive Notice. |
|
|
Term
|
Definition
Borrower, Debtor.
Owner who needs to borrow money to comlete a property purchase. |
|
|
Term
|
Definition
Lender, Creditor
Provides money to borrower. |
|
|
Term
|
Definition
Legal instrument that mortgagee assigns, transfers, the mortgage and promissory note to teh purchaser.
Signed by the Assignor (mortgagee) and delivered to the Assignee (Investor) |
|
|
Term
|
Definition
Verifys the amount of the unpaid balance.
Purpose is to stop a claim that the amoutn owed is different from the actual umpaid balance. |
|
|
Term
|
Definition
Release of Mortgage.
Mortgagor has paid off principal balance.
Mortgagee must record satisfaction within 60 days. |
|
|
Term
|
Definition
Enforcement of mortgage lien.
Caused by mortgagors faulure to pay the mortgage payments.
However, could be failure to perform any of the requirements of mortgage, ie. pay taxes. |
|
|
Term
|
Definition
Settling of foreclosure without going to court.
Friendly foreclosure.
Borrower, Mortgagor, gives title, the deed, to the lender to avoid judicial foreclosure.
Lender takes property subject to existing liens. |
|
|
Term
|
Definition
| Prevents foreclosure by paying mortgagee the principal and interest due plus expenses incurred to collect debt and initiate foreclosure. |
|
|
Term
|
Definition
| Allows the Mortgagee to call due the outstanding balance plus interest if any or all of the property is sold or transferred without lenders consent. |
|
|
Term
|
Definition
Authorizes the mortgagee to accelerate or advance the due date of the unpaid balance if the mortgagor fails to fulfill any promises stated in the mortgage instrument.
Provides lender with power to declsre entire unpaid loan due and payable and to foreclose. |
|
|
Term
|
Definition
Gives mortgagor the right to stop foreclosure before sale.
Provided mortgagor pays all sums that would be due if no acceleration had occured. |
|
|
Term
|
Definition
Defeats prior action when borrower-mortgagor made final payment on loan.
Title Theory - Defeats conveyance of legal title
Lien Theory - Defeats mortgage lien
Constructive notice of defeat is accomplished when executed and recorded. |
|
|
Term
|
Definition
| Allows borrower to pay off part or all of debt without penalty unless otherwise noted in mortgage instrument. |
|
|
Term
|
Definition
Permits Mortgagee to increase interest rate.
Contingent on event like owner occupied to rental. |
|
|
Term
|
Definition
| Requires lender waive right to deficiency judgment against borrower. |
|
|
Term
|
Definition
| Allows Borrower, mortgagor, to increase loan amount up to original amount of loan. |
|
|
Term
|
Definition
| Asks seller to agree to allow bank loan take priority over superior mortgage. |
|
|
Term
|
Definition
| Load that covers a number of parcels or lots. |
|
|
Term
|
Definition
| Utilized to release individual parcels from the blanket mortgage upon payment of a specified amount. |
|
|
Term
|
Definition
| Allows a receiver to be appointed to collect income from property used to make mortgage payment in the event of default. |
|
|
Term
|
Definition
Not insured or guaranteed by a government agancy.
Lender assumes full risk. |
|
|
Term
|
Definition
FHA and VA Guaranteed loans.
Smaller down payment.
Government provides some risk protection. |
|
|
Term
|
Definition
Government agency with Dept of HUD.
Insurance company insuring mortgage loans made by approved lenders.
FHA does NOT make loans.
FHA does NOT process loans.
FHA does NOT regulate interest rates. |
|
|
Term
| Mortgage Insurance Premium |
|
Definition
203.B
Up Front UFMIP - 2.25% on 30 year note. Condos do not requre UFMIP. MIP - Annual charge of .55% of base loan amount on 30 year note. MIP is cancelled after 5 years or LTV of 78%, whichever is longer. Condos have 234
MIP for life since there is no UFMIP. |
|
|
Term
|
Definition
| Minimum Cash Investment of 3.5% of sale price or appraised value without closing costs. |
|
|
Term
|
Definition
| Max amount is based on area home values. |
|
|
Term
|
Definition
| 0-$45000 - 50% of loan amount $45001 - $144000 - Min $22500 to max of up to 40% of loan up to $36000 More than $144000 - up to $104250 or 25% of loan. |
|
|
Term
|
Definition
VA does not set loan limits.
Dependent on value of real estate.
May not exceed CRV Cert of Reasonable Value.
Most lenders observer max loan of $417000. |
|
|
Term
|
Definition
AKA Users Fee.
2.15% of loan amount.
May be added to loan amount.
Service connected disability, fee is waived. |
|
|
Term
|
Definition
May not be included in VA Loan.
Appraisal
Credit Report
Loan Orig (1% of loan)
Discount Points
Title Search
Recording fee
State Transfer Fee
Survey |
|
|
Term
| Conventional Mortgage Loans |
|
Definition
Larger down payment.
20% is norm for no PMI. |
|
|
Term
|
Definition
Straight Term Mortgage.
Buyers pay interest only until the full term of the mortgage expired.
Nonamortizing loan.
Construction Loan. |
|
|
Term
|
Definition
Level payment plan mortgage.
Equal payments that have higher interest in first few years and higher principal in the last few years. |
|
|
Term
|
Definition
| Same as amortized mortgage but instead of 12 montly payments there are 26 biweekly payments. Reduces interest paid. |
|
|
Term
| Partially Amortized Mortgage |
|
Definition
Buyer makes smaller than required payments which do not fully amortize the loan.
One large, balloon payment, is due at maturity. |
|
|
Term
|
Definition
| Loan that includes both real and personal property. |
|
|
Term
|
Definition
Mortgage given as part of the buyers consideration for purchase.
Lien taken back by seller from buyer in lieu of purchase money. |
|
|
Term
|
Definition
AKA Land Contract
Buyer makes small down payment and takes possession.
Seller finances the rest of the purchase.
Title remains with seller until loan is repaid.
Buyer has Equitable Title. |
|
|
Term
|
Definition
| Envelops an existing mortgage and is subordinate to it. |
|
|
Term
|
Definition
Loan characterized by fluctuating interst rate over the term of the loan.
Based on an index, treasury notes.
Margin - percentage added to the index.
Calculated interest rate Index + Margin |
|
|
Term
|
Definition
62 or older and have paid off or very small mortgage.
Homeowner receives payments from lender for as long as they live in the home.
If sale proceeds are insufficient to pay off amount paid to owner at death or sale, HUD pays the difference to lender. |
|
|
Term
|
Definition
Secured by borrowers residence.
Original mortgage remains in place.
AKA second mortgage. |
|
|
Term
|
Definition
| Seller or developer pays up front fee to lender for a reduced loan interest rate usually for the first 1 to 3 years. |
|
|
Term
|
Definition
| HER = Monthly Housing Expenses PITI / Monthly Gross Income |
|
|
Term
|
Definition
| TOR = Total Montly Obligations / Monthly Gross Income |
|
|
Term
| Mortgage Loan Underwriting |
|
Definition
Quantity and Quality of borrowers income
Other assets of value
Past Credit History
Loan to Value Ratio
Borrowers Credit Score |
|
|
