ACCELERATED PAYMENT SCHEDULE ADJUSTABLE RATE MORTGAGE (ARM) AMORTIZATION ANNUAL CAP BUY DOWN CERTIFICATE OF ELIGIBILITY CREDIT REPORT DISCOUNT POINTS DOWN PAYMENT FANNIE MAE FHA LOAN FIXED RATE MORTGAGE FREDDIE MAC HOME EQUITY LOAN INTEREST LOAN APPLICATION LOAN TERM LOAN-TO-VALUE RATIO (LTV) LENDER MONTHLY HOUSING ALLOWANCE MORTGAGEE MORTGAGE INSURANCE

MATURITY DATE NO DOC LOAN OBLIGATIONS ORIGINATION FEES PER-DIEM INTEREST PITI PRINCIPLE PRE-APPROVAL RATE LOCK REFINANCING RETIRE A DEBT SELF-AMORTIZING LOAN UP-FRONT COSTS VA LOAN APPRAISAL ASSESSMENT ASSESSED VALUATION CLOSING CLOSING COSTS EASEMENT EQUITY FAIR MARKET VALUE FLOOD INSURANCE

HAZARD INSURANCE PARCEL REASSESSMENT SITE ASSESSMENT SURVEY ZONING CHATTEL CONTRACT OF SALE ESCROW ACCOUNT EXECUTED SALES CONTRACT FULL DISCLOSURE GIFT LETTER OWNER OF RECORD PREPAYMENT PENALTY PUBLIC RECORDS PUNCH LIST PURCHASE CAPITAL TITLE TITLE INSURANCE TITLE SEARCH

MORTGAGE DICTIONARY
LOAN TALK

When your lender says . . .Accelerated Payment Schedule What they mean is . . . An option you have to pay back a loan quicker than required. When your lender says . . .Adjustable Rate Mortgage (ARM) What they mean is . . . A loan with an interest rate that increases or decreases over time. When your lender says . . .Amortization What they mean is . . . The process of paying back, over a period of time. When your lender says . . .Annual Cap What they mean is . . . The limit on the amount an adjustable rate the mortgage can go up. When your lender says . . .Buy Down What they mean is . . . The option you have to lower the overall interest rate. When your lender says . . .Certificate of Eligibility What they mean is . . . What you can use to prove your status as a veteran. When your lender says . . .Credit Report What they mean is . . . A document produced by a credit report firm that provides a credit statement. When your lender says . . .Discount Points What they mean is . . . The amount of money you can choose to pay to lower your interest rate. When your lender says . . .Down Payment What they mean is . . . The amount you pay in cash towards the total sales amount. When your lender says . . .Fannie Mae What they mean is . . . A nickname for the Federal National Mortgage Association. When your lender says . . . FHA Loan What they mean is . . . A loan offered by the Federal Housing Authority (FHA). When your lender says . . .Fixed Rate Mortgage What they mean is . . . A loan with an interest rate that stays the same. When you lender says . . .Freddie Mac What they mean is . . . A nickname for the Federal Home Loan Mortgage Association. When your lender says . . .Home Equity Loan What they mean is . . . A loan that lets you borrow back money against the home. When your lender says . . .Interest What they mean is . . . The amount of money a lender charges you to borrow. When your lender says . . .Loan Application What they mean is . . . The formal document you fill out when you apply for funds. When your lender says . . .Loan Term What they mean is . . . The total amount of time you are given by a lender to pay back the loan. When your lender says . . .Loan-to-Value Ratio (LTV) What they mean is . . . A mathematical equation mortgage experts use to determine how much they will lend you. When your lender says . . .Lender What they mean is . . . A financial institution, like a bank, which loans you money. When your lender says . . .Monthly Housing Allowance What they mean is . . . The percentage of a person’s income they can use for housing. When your lender says . . .Mortgage What they mean is . . . The legal document outlining your responsibilities. When your lender says . . .Mortgagee What they mean is . . . The lender that provides a borrower with a home loan. When your lender says . . .Mortgage Insurance What they mean is . . . An insurance policy you are required to get if the loan-to-value is too high. When your lender says . . . Maturity Date What they mean is . . . .The scheduled date for your final payment on a loan. When your lender says . . .No Doc Loan What they mean is . . . A loan requiring no documentation of income. When your lender says . . .Obligations What they mean is . . . The things you have to pay for consistently each month. When your lender says . . .Origination Fees What they mean is . . . The charges you must pay when first buying a home. When your lender says . . .Per-diem Interest What they mean is . . . Interest charges that cover the period of time––usually calculated on a per-day basis. When your lender says . . .PITI What they mean is . . . An acronym that refers to the payment, principle, interest, taxes & insurance. When your lender says . . .Principal What they mean is . . . The money a lender lets you borrow to buy a home. When your lender says . . .Pre-Approval What they mean is . . . A way you can establish your ability to get a home. When your lender says . . .Rate Lock What they mean is . . . A way you can establish that the interest rate on your home is locked in. When your lender says . . .Refinancing What they mean is . . . The way you can replace your current home loan with another. When your lender says . . .Retire a Debt What they mean is . . . When you pay off your home loan completely. When your lender says . . .Self-Amortizing Loan What they mean is . . . A loan that gets paid back through regular monthly payments. When your lender says . . .Up-Front Costs What they mean is . . . The total amount of cash you need to pay when you buy a home. When your lender says . . .VA Loan What they mean is . . . A way that veterans of the armed services can borrow. Back to top of page REAL ESTATE TERMS When your lender says . . . Appraisal What they mean is . . . The process of figuring out how much a home is worth. When your lender says . . .Assessment What they mean is . . . The amount of property taxes you must pay to the government. When your lender says . . .Assessed Valuation What they mean is . . . The determination, for tax purposes, of how much your property is worth. When your lender says . . .Closing What they mean is . . . When you actually become the owner of the property. When your lender says . . .Closing Costs What they mean is . . . The fees and charges a buyer and seller must pay at closing. When your lender says . . .Easement What they mean is . . . The legal rights the general public has with regard to crossing over land. When your lender says . . .Equity What they mean is . . . How much of your home you actually own, when you deduct the debt from the value. When your lender says . . .Fair Market Value What they mean is . . . A term that refers how much a home or property is worth. When your lender says . . .Flood Insurance What they mean is . . . An insurance policy that covers damage your home can incur in a flood. When your lender says . . .Hazard Insurance What they mean is . . . An insurance policy many lenders require a home buyer to have. When your lender says . . .Parcel What they mean is . . . A piece of land or property under one ownership. When your lender says . . .Reassessment What they mean is . . . The process of updating the understood value of a property. When your lender says . . .Site Assessment What they mean is . . . A mandatory environmental inspection that checks for soil contaminants. When your lender says . . . Survey What they mean is . . . The process of measuring a piece of land to establish property lines. When your lender says . . .Zoning What they mean is . . . The way cities and towns define how areas within the city are zoned. Back to top of page LEGAL MATTERS When your lender says . . .Chattel What they mean is . . . Property you own aside from real estate. When your lender says . . .Contract of Sale What they mean is . . . The written agreement between you, as the buyer and the seller. When your lender says . . .Escrow Account What they mean is . . . A bank account where you deposit money that will cover costs for future taxes & insurance.. When your lender says . . .Executed Sales Contract What they mean is . . . A contract where all the terms have been successful. When your lender says . . .Full Disclosure What they mean is . . . A legal requirement that says a person selling a home is required to tell you everything they know about the property. When your lender says . . .Gift Letter What they mean is . . . The form stating that a relative is giving you money to buy a home. When your lender says . . .Owner of Record What they mean is . . . The actual owner of a property, according to public records. When your lender says . . .Prepayment Penalty What they mean is . . . A fee that you are charged by the lender when you pay early. When your lender says . . .Public Records What they mean is . . . The documents that are evidence of real estate transactions. When your lender says . . . Punch List What they mean is . . . A written inventory of things that need to be done to close. When your lender says . . .Purchase Capital What they mean is . . . The total amount of money a person uses to buy a property. When your lender says . . .Title What they mean is . . . The legal, written evidence that identifies the owner. When your lender says . . .Title Insurance What they mean is . . . The insurance policy you must purchase to protect the lender. When your lender says . . .Title Search What they mean is . . . A legal examination of public records to identify the owner. Back to top of page

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