Appraisal: An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.
Balloon Note: A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as a balloon is due at maturity.
Closing (Settlement): The final procedure in which documents are executed and/or recorded, and the sale (or loan) is completed.
Closing Fees: Expenses incidental to a sale of real estate, such as loan fees, title fees, appraisal fees, origination fees, etc.
Conventional: A mortgage or deed of trust not obtained under a Government insured program such as HUD/FHA, or VA.
Equity: Net ownership, the difference between fair market value and current indebtedness, sometimes called owner´s interest.
Escrow: An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition.
Foreclosure: A legal procedure in which a mortgaged property is sold to pay the outstanding debt in case of default.
Indexing: To alter mortgage term, payment, or rate according to inflation and/or a suitable mortgage rate index.
Jumbo Loan : Any loan over $417,000. Available on Fixed Rate First Trusts, 7-Year option, InterestFirst and Adjustable Rate Mortgages.
Loan to Value Ratio (LTV)
: The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property.
LLPA - Loan Level Price Adjustment
Lock-In Period: A period of time during which a lender guarantees the borrower a specific interest rate on a mortgage loan.
Origination Fee: A fee made by a lender for making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
Points: One percent of the loan amount. Usually a commission paid for arranging a loan.
Prepaid Interest: Interest paid before coming due.
Prepayment: The payment of all or part of a mortgage debt before it is due.
Private Mortgage Insurance (PMI): Insurance against a loss by a lender in the event of default by a borrower. (Required for most mortgage loans greater than 80%LTV)
Recordation: Filing instruments for public record (and notice) with a recorder (usually a county official).
Refinancing: The renewing of an existing loan with the same borrower and lender. A loan on the same property by either the same lender or borrower.
Release of Lien: An instrument releasing property from the lien of the mortgage, judgment, etc.
Sales Contract: A written agreement between a buyer and seller stating terms and conditions of a sale or exchange of property.
Survey: The measurement of the boundaries of a parcel of land, its area, and sometimes its topography.
Title Search: A review of all recorded documents affecting a specific piece of property to determine the present condition of title.
Verification: Confirmation of trust, correctness, or authenticity.