Use our comprehensive mortgage terms glossary to get definitions of mortgage terms that may come up throughout the loan process. Ordered in alphabetical order below:
A written summary of the title history of a particular piece of real estate.
A provision of a mortgage or note which provides that the entire outstanding balance will become due and payable in the event of default.
A mortgage in which the interest rate is adjusted periodically, based on the movement of a financial index.
Repayment of loan by installment payments. As the payments are made, the debt is reduced so that at the end of fixed period or term, no money will be owed.
The annual percentage rate refers to the total cost of the loan, expressed as a yearly rate.
That part of the closing costs pre-paid to the lender at time of application to cover initial expenses.
A report made by a qualified person as to the value of a property as of a given date.
The value placed on a piece of real estate by the taxing authority for the purpose of taxation. Also called an assessment.
The purchaser takes over mortgage payments for the balance of the loan, assuming primary liability. Unless specifically released by the lender, the seller remains secondarily liable.
A mortgage with periodic payments that do not fully amortize the loan. The outstanding balance of the mortgage is due in a lump sum at the end of the term.
A short-term loan secured by the equity in an as-yet-unsold house, with the funds to be used for a down payment and/or closing costs on a new house. There is no payment of principal until the house is sold or the end of the loan term, whichever comes first. Interest payments may or may not be deferred until the house is sold.
The person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.
Money advanced by an individual (e.g. builder, seller, buyer, lender, developer) to lower monthly mortgage payments for a few years or the whole term.