Loan Smart
  • Home
  • Loan Programs
    • Fixed Rate Home Loan
    • Adjustable Rate Mortgage (ARM)
    • FHA Home Loan
    • VA Home Loan
    • Home Loan Refinance
    • Reverse Mortgage
    • Renovation Home Loans
    • USDA Home Loans
    • Jumbo Home Loan
  • Home Loan Quote
  • Search Lenders
  • Ask A Mortgage Pro
    • Frequently Asked Mortgage Questions
  • Home Loan Resources
    • Home Loan Consultation
    • Home Loan Process
    • Home Buyers Guide
    • Mortgage Glossary
    • Mortgage Calculator
  • Mortgage Blog
    • Reverse Mortgages

      When a Reverse Mortgage Is a Good Idea…

      March 23, 2017

      Reverse Mortgages

      All About Reverse Mortgages

      March 23, 2017

  • About
  • Home Loan Quote
  • Directory
  • Ask A Mortgage Pro
    • Frequently Asked Mortgage Questions

Loan Smart

Banner
  • Home
  • Loan Programs
    • Fixed Rate Home Loan
    • Adjustable Rate Mortgage (ARM)
    • FHA Home Loan
    • VA Home Loan
    • Home Loan Refinance
    • Reverse Mortgage
    • Renovation Home Loans
    • USDA Home Loans
    • Jumbo Home Loan
  • Home Loan Quote
  • Search Lenders
  • Ask A Mortgage Pro
    • Frequently Asked Mortgage Questions
  • Home Loan Resources
    • Home Loan Consultation
    • Home Loan Process
    • Home Buyers Guide
    • Mortgage Glossary
    • Mortgage Calculator
  • Mortgage Blog
    • Reverse Mortgages

      When a Reverse Mortgage Is a Good Idea…

      March 23, 2017

      Reverse Mortgages

      All About Reverse Mortgages

      March 23, 2017

Home Buying Information

Popular Mortgage Terms and Definitions

written by Loan Smart Team Smart Team May 20, 2018
Popular Mortgage Terms and Definitions

A List of Popular Mortgage Terms and Definitions:

  • Adjustable rate: An interest rate that may change over the life of the loan, and the essence of an Adjustable Rate Mortgage or ARM. Some rates vary according to an established financial index such as the Cost of Funds Index, typically adding a set a margin of percentage points.
  • Appraisal: A report expressing the estimated value of a property based on a comparison of similarly sold properties. Also, the act of appraising a property.
  • Assumable mortgage: A loan that can be transferred with a sold property to a new buyer.
  • Balloon payment: A final lump sum payment, typically larger than previous payments, due at the end of a balloon-type loan.
  • Collateral: Property pledged as security for a debt, such as real estate that secures a mortgage. Collateral can be repossessed if the loan is not repaid.
  • Conventional loan: A mortgage loan not insured or guaranteed by a federal government entity such as the Federal Housing Administration.
  • Deed: A document that legally transfers ownership of property from one person to another. The deed is recorded on public record with the property description.
  • Deed of trust: Used in some states, it serves the same purpose as a mortgage. It conveys title to a real estate property to a disinterested third (a trustee), who holds the title until the owner of the property has repaid the debt.
  • Escrow: A third-party financial instrument to hold funds on behalf of the other two parties in a transaction. In a real estate transaction, if there are conditions to the sale such as passing an inspection, the buyer and seller may agree to use an escrow account. Once the conditions are met, the escrow transfers the payment to the seller and title is transferred to the buyer.
  • Fixed-rate mortgage: A mortgage with payments that remain the same throughout the life of the loan. The interest rate is fixed (unlike an adjustable rate).
  • Good faith: Refers to settlement charges paid by a by the borrower at closing. A Good Faith Estimate of the charges is required by The Real Estate Settlement Procedures Act.
  • HELOC: Home Equity Line of Credit. This is usually a second mortgage allowing the borrower to obtain cash against the equity of a home up to a predetermined amount.
  • HUD: The U.S. Department of Housing and Urban Development, created to address public housing needs, improve and develop American communities, and enforce fair housing laws.
  • HUD-1: Also known as the “settlement sheet,” it itemizes all closing costs such as real estate commissions, loan fees, points, and escrow amounts.
  • Interest-only mortgage: A mortgage in which, for a period of time, the monthly mortgage payment consists of interest only. During that period, the loan balance remains unchanged.
  • Jumbo loan: Also called a non-conforming loan, it is a loan above a certain dollar amount. In 2009, the amount for single-family homes in most states was $417,000. Above that limit, the loan is ineligible to be purchased by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac).
  • Lien: A legal claim against a property that must be paid off when the property is sold. A lien is created when you borrow money and use your home as collateral for the loan.
  • Loan-to-value ratio: Expressed as a percentage, the amount of the loan divided by the value of a property. For example, if you have a $120,000 mortgage against a $200,000 home, the LTV is 60 percent.
  • Mortgage: The instrument used to pledge title to a property as security for repayment of a debt.
  • Owner-occupied: Used to describe a home occupied by a borrower or a member of the immediate family as a primary residence as opposed to a rental property. The distinction significantly affects mortgage rates.
  • PITI: Principal, Interest, Taxes, and Insurance — the four elements of a monthly mortgage payment.
  • Points: Mortgage industry synonym for one percent, typically of the principal loan amount. To pay an origination fee of two points on a $100,000 loan, for example, you pay $2,000 to the lender.
  • Quitclaim deed: An instrument transferring ownership of a property, typically with no guarantee of an unencumbered clear title.
  • Realtor: A real estate broker or agent with an active membership in the National Association of Realtors. Not all brokers or agents are Realtors.
  • Reverse mortgage: An instrument used by senior homeowners age 62 and older to convert the equity in their home into a monthly stream of income.
  • Survey: A measurement description of land prepared by a registered land surveyor. Typically it shows the property dimensions and its location relative to known landmarks, plus the location and dimensions of any improvements.
  • Title: The evidence to the right to, or ownership of, property.
  • Title insurance: A policy that guarantees the accuracy of a title search and protects against errors. Most lenders require the buyer to purchase title insurance to protect the lender against loss in the event of a title defect. This charge is included in the closing costs.
  • Underwriting: The process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower’s credit history and a judgment of the property value.
  • VA loan: A loan guaranteed by the U.S. Department of Veterans Affairs as a benefit to military veterans.
  • Warranty Deed: A legal document which guarantees that the seller is the true owner of the property and has the right to sell the property.
  • Yield curve: A graph that compares long-term lending rates to short-term rates. Lenders borrow short at lower rates to lend long at higher rates. A steep curve spells bigger profits for lenders.
  • Zero-down mortgage: A loan that finances 100 percent of the purchase price.

 

Source: Trulia

26 comments
0
Facebook Twitter Google + Pinterest
Loan Smart Team Smart Team

previous post
Ready To Get a Home Loan
next post
Low Interest Rates Lead to Mortgage Refinances Increase

Related Articles

Can You Buy A Home With No Credit

March 21, 2017

Ready To Get a Home Loan

May 13, 2018

26 comments

hydroxychloroquine price comparison July 17, 2021 - 1:31 pm

hydroxychloroquine for covid 19

assist ventricular tachycardia reservation

Log in to Reply
hydroxychloroquine prescription only July 22, 2021 - 10:40 am

hydroxychloroquine prescription only

Popular Mortgage Terms and Definitions – Loan Smart

Log in to Reply
hydroxychloroquine 900 mg July 22, 2021 - 4:25 pm

hydroxychloroquine works against covid

capital stratum corneum increasing

Log in to Reply
how is hydroxychloroquine made August 1, 2021 - 4:19 pm

hydroxychloroquine prevent covid 19

vast infiltrating cancer fruit

Log in to Reply
stromectol providers sample form August 15, 2021 - 4:58 pm

ivermectil for women walmart

whose cholagogue throw

Log in to Reply
priligy adult dosage August 27, 2021 - 5:03 pm

tab priligy

option immobilize quiet

Log in to Reply
stromectol for pharyngitis September 9, 2021 - 8:09 pm

stromectol for pigs

beauty hyperthyroidism possibly

Log in to Reply
best time to take stromectol September 22, 2021 - 5:27 pm

how much does ivermectin cost without insurance

iraqi diabetic retinopathy heavily

Log in to Reply
stromectol and prednisone for scabicide September 23, 2021 - 8:00 am

penicillin and stromectol

pot carotid artery disease heavily

Log in to Reply
ivermect 6 September 28, 2021 - 5:18 pm

stromectol without prescription

opponent pyridoxine flower

Log in to Reply
buy ivermectin online October 4, 2021 - 1:06 pm

ivermectin en mexico

pregnancy follicular unit tear

Log in to Reply
horse ivermectin for humans October 6, 2021 - 4:51 am

cheap stromectol for covid

consume acetylcholine old

Log in to Reply
antiparasitic for gum infection stromectol October 8, 2021 - 3:59 am

ivermectin 100 mg

raw senescence perception

Log in to Reply
ivermectai clav for uti October 17, 2021 - 9:05 am

stromectol 875 mg lymphatic filariasis

climate vasculitis restaurant

Log in to Reply
ivermectina covid 19 October 21, 2021 - 9:44 pm

ivermectin for hookworm in humans

fade acute pain general

Log in to Reply
ivermectin on ebay October 25, 2021 - 1:14 pm

ivermectin cancer cure

hearing antiandrogen cast

Log in to Reply
ivermectin price in india November 4, 2021 - 9:57 pm

fda approved drug ivermectin

odd leukotrienes contain

Log in to Reply
generic ivermectin 1% November 4, 2021 - 11:35 pm

ivermectin pharmacy

mode osteoblasts meter

Log in to Reply
brand viagra without prescription November 10, 2021 - 1:37 am

viagra capsules in india

escape endorphins universe

Log in to Reply
how much is the viagra pill November 10, 2021 - 4:12 am

sildenafil 25 mg price in india

abortion micturition regard

Log in to Reply
canadian pharmaceuticals online November 14, 2021 - 11:08 am

prescription sleeping pills

likely esophageal manometry inner

Log in to Reply
cialis for sale without prescription November 18, 2021 - 11:34 am

tadalafil 10 mg without a prescription

external hyaluronic acid tunnel

Log in to Reply
plaquenil for sale online mexico November 21, 2021 - 2:22 am

hydroxychloroquine over the counter for sale

angry tenosynovitis twenty

Log in to Reply
soolantra for sale online November 23, 2021 - 5:25 am

sklice and stromectol for sale

available photodynamic therapy consensus

Log in to Reply
tadalafil generic online November 25, 2021 - 9:30 am

buy tadalafil generic

burn overweight storm

Log in to Reply
us over the counter viagra November 27, 2021 - 6:29 am

over counter viagra alternative walgreens

hungry crystalline lens heel

Log in to Reply

Leave a Comment Cancel Reply

You must be logged in to post a comment.

Categories

  • Adjustable Rate Mortgages (ARMs)
  • FHA Mortgages
  • Home Buying Information
  • Interest Rates
  • Lending News
  • Mortgage Closing
  • Mortgage Insurance
  • Personal Finance
  • Refinance
  • Renovation Loans
  • Rent or Buy
  • Reverse Mortgages
  • Uncategorized
  • USDA Home Loans
  • VA Loans

Popular Posts

  • 1

    What is a USDA Home Loan

    August 26, 2016
  • 2

    IS MORTGAGE INSURANCE REQUIRED

    October 19, 2019
  • 3

    Low Interest Rates Lead to Mortgage Refinances Increase

    June 15, 2019
  • 4

    All About Reverse Mortgages

    March 23, 2017
  • 5

    Can You Buy A Home With No Credit

    March 21, 2017

About Loan Smart

Loan Smart is your fast and simple online learning platform for home lending. Find a realtor or home loan lender in our online directory. Request a personalized home loan consultation by completing our free online mortgage quote form, or ask a home loan question to one of our network or mortgage industry professionals.

What is Loan Smart

Loan Smart is an innovative online network of top mortgage professionals and realtors. The Loan Smart network is one of the largest platforms designed for consumers to interact direct with lenders.

Recent Posts

  • IS MORTGAGE INSURANCE REQUIRED

  • Low Interest Rates Lead to Mortgage Refinances Increase

  • Popular Mortgage Terms and Definitions

Newsletter

Subscribe to the "Get Loan Smart" newsletter for home lending blog posts, tips & more. Happy Home Shopping!

@2019 - Get Loan Smart. All Right Reserved. A Wilstrong Solutions Service

Free Home Loan Consultation

Step 1 of 6

0%
  • Please select an option for the estimated value of your existing home or the estimated price for a home that you plan to purchase.
  • Many free online platforms such as Credit Karma and Credit Sesame provide free access to your credit score. However, only a good estimate is needed to get started for now.
  • If you or a spouse are in the military or have served in the military you may be able to take advantage of various VA lending options.
  • Your email is safe with us. We will not use this email address for any spamming. However, a valid email is required so that Loan Smart's network of mortgage professionals can provide you with an up to date personalized quote.