A clause in a mortgage that allows a lender to demand payment of the outstanding loan balance for a variety of reasons. The most common reasons include a borrower defaulting on the loan or transferring title to another individual without notifying the lender.
adjustable-rate mortgage (ARM)
A mortgage in which the interest changes periodically, relating to corresponding fluctuations in an index. All ARMs are tied to indexes.
The date on which the interest rate changes on an adjustable-rate mortgage.
The loan payment includes a portion that will be applied to pay accruing interest on a loan, with the remainder applied to the principal. Over a period of time, the interest portion will decrease as the loan balance decreases, and the amount applied to principal increases so the loan is paid off (amortized) in the specified time.
A table showing how much of each payment is applied toward principal and how much toward interest over the life of the loan. It also indicates the gradual decrease of the loan balance until it reaches zero.
annual percentage rate (APR)
This is not the note rate on your loan—it is a value that is created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. A guideline: deduct closing costs from your loan amount then, using your actual loan payment, calculate the interest rate on this amount instead of your actual loan amount. The result will be a number close to the APR. Because you are using the same payment on a smaller amount, the APR will always be higher than the actual note rate on your loan.
The form that is used to apply for a mortgage loan, containing information about the borrower’s income, savings, assets, debts, and more.
An expert’s opinion of a property’s market value. The term can also refer to the process by which the opinion of the market value is obtained.
An opinion of a property’s fair market value, based on an appraiser’s knowledge, experience, and an analysis of the property itself. Because an appraisal is based primarily on comparable sales, and the most recent sale transaction is the one on the property in question, the appraisal usually comes out at the purchase price.
An individual qualified by education, training, and experience to estimate the value of real and personal property. While some appraisers work directly for mortgage lenders, most of them are independent.
The increase in a property’s value as a result of changes in market conditions, inflation, or other causes.
A public official who establishes the value of a property for taxation purposes.
The valuation placed on property by a public tax assessor for the purposes of taxation.
An item of value that is owned by an individual. Assets that can be quickly converted into cash are termed “liquid assets.” They include bank accounts, stocks, bonds, mutual funds, and the like. Other assets include real estate, personal property, and debts owed to an individual.
The written transfer of an interest in a lease or mortgage. The lessee (assignor) transfers the remainder of the term, and the assignee then becomes liable to the original lessor for the rent. Depending upon the terms of the original contract or assignment, the assignor may retain secondary liability for payments.
A mortgage that can be assumed by the buyer when a home is sold. In most instances, the borrower must “qualify” in order to assume the loan.
A mortgage loan requiring that the remaining principal balance be paid at a specific point in time. As an example, a loan may be amortized as if it would be paid over a 30-year period, but requires that at the end of the 10th year, the entire remaining balance must be paid.
The final lump sum payment due when a balloon mortgage is terminated.
With a filing in federal bankruptcy court, an individual or individuals can restructure or gain relief of debts and liabilities. There are various types of bankruptcies, with the most common for an individual a “Chapter 7 No Asset” bankruptcy that relieves the borrower of most types of unsecured debts. A borrower cannot usually qualify for an “A” paper loan for a period of two years after the bankruptcy has been discharged and requires re-establishment of an ability to repay debt.
Also referred to as a blanket mortgage, this type of loan covers more than one parcel of property. In most instances, individual parcels are released or partially released from the blanket loan/mortgage as the debt is retired.
A broker is an intermediary who negotiates rates; handles the paperwork, forms and legal items; and otherwise represents the borrower.
Short-term loan, used to “bridge the gap.” As an example, it is often a loan used to buy a property until a permanent loan can be secured.
Adjustable Rate Mortgages have fluctuating interest rates that are usually limited to a certain amount. Limitations may apply to how much the loan may adjust over a six-month period, an annual period, or over the life of the loan, and are referred to as “caps.” Some ARMs, while they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change yearly. There is a limit on how much that payment can change, and that limit is also referred to as a cap.
The interest rate thought to be an acceptable return on an investment.
When a borrower refinances a mortgage at a higher amount than the current loan balance, intending to pull out money for personal use, it is referred to as a “cash-out refinance.”
chain of title
An analysis of transfers of title to a piece of property over the property’s history.
A title free of liens or legal questions as to ownership of the property.
The process of finalizing the sale of property, including transfer of title from the seller to the buyer. It is the time when all requirements, such as mortgages, are signed or delivered.
cloud on title
Conditions discovered by a title search that adversely affect the title to real estate. Clouds on title usually cannot be removed except by deed, release, or court action.
An additional individual that is obligated on the loan and is on title to the property.
In a home loan, the property itself is the collateral. As a result, the borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.
commercial conduit lenders
Conduit lenders are conglomerates that attempt to pool assets from different types and classes and sell them to other lenders or investors, thereby creating an intermediary to achieve massive funding based on the equity in an entire estate or large group of unique collateral. Hedging in the secondary market helps mitigate the risk assumed by these lenders, driving down the rates and making conduit lending a competitive alternative.
Commercial lenders offer a variety of mortgage-backed loans for commercial property. Each commercial lender sets its own economic, demographic and geographic criteria.
In some states, especially the southwestern U.S., property that is acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances.
Recent sales of similar properties in the nearby and used to help determine the market value of a property.
A type of ownership in real property in which all of the owners own the property, its common areas and buildings together, with the exception of the interior of the unit to which they have title.
A short-term, interim loan utilized to finance the cost of construction. The lender makes payments to the builder at periodic intervals as the work on the project progresses.
A condition that must be met before a contract is legally binding. As an example, home purchasers often include a contingency specifying that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
Refers to home loans other than government loans (VA and FHA).
An adjustable-rate mortgage allowing the borrower to change the ARM to a fixed-rate mortgage within a specified time.
A type of multiple ownership in which the residents of a multi-unit residential complex own shares in the cooperative corporation that owns the property. Each resident has the right to occupy a specific apartment or unit
A record of an individual’s debt repayment. Credit histories are reviewed by mortgage lenders as one of the underwriting criteria in determining credit risk.
A person or entity to which money is owed.
A report of an individual’s credit history prepared by a credit bureau and used by a lender to determine a loan applicant’s creditworthiness.
The legal document conveying title to a property.
Short for “deed in lieu of foreclosure,” this conveys title to the lender when the borrower defaults and wants to avoid foreclosure. The lender may or may not cease foreclosure if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, avoidance and non-repayment of debt will most likely be reflected on a credit history. A deed-in-lieu may prevent having the documents preparatory to a foreclosure being recorded and become a matter of public record.
deed of trust
Some states, like California, do not record mortgages, instead recording a deed of trust, which is essentially the equivalent.
The failure to make a payment or fulfill a commitment.
The decline in the value of property (the opposite of appreciation). It is also an accounting term illustrating the declining monetary value of an asset and is used as an expense to reduce taxable income. Because it is not a true expense where money is actually paid out, lenders will add back depreciation expense for self-employed borrowers and count it as income.
The portion of a purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
A provision in a mortgage allowing the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.
A right of way giving entities other than the owner access to or over a property.
The right of a government to take private property for public use upon payment of the property’s fair market value. Eminent domain is the basis for condemnation proceedings.
An improvement that illegally intrudes on another’s property.
Anything affecting or limiting the fee simple title to a property, such as mortgages, leases, easements, or other restrictions.
Equal Credit Opportunity Act (ECOA)
A federal law requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
The difference between a property’s market value and the claims held against it.
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.
Once a purchase transaction is closed, the buyer may have an escrow account or impound account with the lender. This is the amount paid each month, including an amount above what would be required if the buyer were only paying principal and interest. The extra money is held in an impound (escrow) account for payment of such items as property taxes and homeowner’s insurance. In effect, the lender pays them with the borrower’s money instead of the borrower paying them itself.
A legal clause that can be taken out by a mortgage borrower. The certificate verifies the major points of an existing lease between a landlord and tenant.
The lawful expulsion of an occupant from real property.
A written contract giving a licensed real estate agent the exclusive right to sell a property for a specified time.
A person named in a will to administer an estate. The court will appoint an administrator if no executor is named.
Fair Credit Reporting Act
A consumer protection law regulating disclosure of consumer credit reports by consumer/credit reporting agencies and establishing procedures for correcting mistakes on one’s credit record.
fair market value
Highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.
Fannie Mae (FNMA)
The Federal National Mortgage Association is a congressionally-chartered, shareholder-owned company that is the nation’s largest supplier of home mortgage funds.
The overnight lending rate between banks as set by the United States’ Federal Reserve Bank.
Federal Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban Development (HUD) whose main activity is insuring residential mortgage loans provided by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.
The greatest possible interest a person can have in real estate.
fee simple estate
An unconditional, unlimited estate of inheritance of perpetual direction that represents the greatest estate and most extensive interest in land. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building and is an owner in common of the land and other common portions of the property.
A mortgage insured by the Federal Housing Administration (FHA). Along with Department of Veterans Affairs (VA) loans, an FHA loan is often referred to as a government loan.
A lender’s agreement to make a loan to a specific borrower on a specific property.
The mortgage placed first among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.
Regular payments (usually monthly) due on a mortgage loan, including payment of both principal and interest.
A mortgage in which the interest rate does not change over the entire term of the loan.
Personal property that becomes real property when attached in a permanent manner to real estate.
Insurance covering physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.
The legal process under which a borrower in default under a mortgage loses their interest in the mortgaged property. This process usually involves a forced sale of the property at public auction, with the proceeds applied to the mortgage debt.
Government National Mortgage Association (Ginnie Mae)
A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD), created by Congress on September 1, 1968. It performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for FHA and VA (government) loan.
The entity to which a real property interest is conveyed.
The person conveying a real property interest.
A entity pledging collateral for the contract of another or who guarantees the performance of another.
Real estate is the primary collateralized asset for a hard money loan. Hard money refers specifically to the asset used to guarantee repayment. In the event of a default, hard money is repaid by the borrower with the collateralized property.
hard money lender
A lender who offers loan funding based on real estate as the primary collateral asset.
hard money loan
A Hard Money Loan is a loan in which real estate serves as the collateral asset.
To give property as security without relinquishing ownership of said property. A mortgage is a good example of a hypothecation.
Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or other hazards.
home equity line of credit
A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.
A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.
A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements.
An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.
A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage as a condition of the sale, but either party can pay.
HUD-1 settlement statement
A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow (impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller’s net proceeds and the buyer’s net payment at closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban Development (HUD). The HUD1 statement is also known as the “closing statement” or “settlement sheet.”
Property which produces income from rentals and profits.
A form of ownership or taking title to property which means each party owns the whole property and that ownership is not separate. In the event of the death of one party, the survivor owns the property in its entirety.
A decision made by a court of law. In judgments that require the repayment of a debt, the court may place a lien against the debtor’s real property as collateral for the judgment’s creditor.
A type of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of a court. Other states use non-judicial foreclosure.
A loan that exceeds Fannie Mae’s and Freddie Mac’s loan limits, currently at $417,000. Also called a nonconforming loan. Freddie Mac and Fannie Mae loans are referred to as conforming loans.
The penalty a borrower must pay when a payment is made a stated number of days. On a first trust deed or mortgage, this is usually fifteen days.
A written agreement between the property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time.
A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.
An alternative financing option that allows home buyers to lease a home with an option to buy. Each month’s rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.
A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.
A term that can refer to the institution making the loan, or the individual representing the firm—a loan officer, for example.
letter of intent
A non-binding agreement between parties involved in a contract to go forward with negotiations or complete a project.
A person or entity’s financial obligations that include long-term and short-term debt, and any other amounts owed to others.
Insurance coverage that protects against claims alleging that a property owner’s negligence or inappropriate action resulted in bodily injury or property damage to another party.
LIBOR is the most widely-used benchmark or reference rate for short-term interest rates. LIBOR, which stands for the London Interbank Offered Rate, is the interest rate at which banks borrow funds from other banks, in marketable size, in the London interbank market.
A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien.
line of credit
An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower.
A cash or other asset that is easily converted into cash.
A sum of borrowed money (principal) that is generally repaid with interest.
Also known as a lender, loan representative, loan account executive, and other terms, it is the individual serving several functions with various responsibilities such as soliciting loans. They are the representative of the lending institution, and also represent the borrower to the lending institution.
A lender’s reference to the process of obtaining new loans.
loan origination fee
The fee charged by a broker for the broker’s expertise in determining which lender is likely to fund a loan and, in some instances, assisting in preparing the documents required to close the loan efficiently.
After a loan is obtained, the company to which payments are made is “servicing” the loan. They process payments, send statements, manage the escrow/impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made, handle pay-offs and assumptions, and provide a variety of other services.
The ratio of a loan amount against the value of the property being used as collateral. A property valued at $100,000 with a loan request against the asset of $50,000, for example, would have a loan-to-value ratio of 50%.
The actual selling price of a property or land.
The written, estimated value obtained by considering location, assets, supply and demand. Estimates for market value are typically provided by a licensed appraiser for hard money deals.
Also known as a merchantable title, this is a title free from liens, enabling an owner to freely sell a property.
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
merged credit report
A credit report indicating the raw data pulled from two or more of the major credit repositories, contrasted to a Residential Mortgage Credit Report (RMCR) or a standard factual credit report.
Occasionally, a lender will agree to modify the terms of a mortgage without requiring a borrower to refinance. If any changes are made, it is called a modification.
A legal document pledging a property to the lender as security for payment of a debt.
A company that originates loans, then placing those loans with other lending institutions with whom they usually have pre-established relationships.
The lender in a mortgage agreement.
mortgage insurance (MI)
Insurance covering the lender against some of the losses incurred as a result of a default on a home loan. Mortgage insurance is usually required in one form or another on all loans with a loan-to-value higher than 80%. Mortgages above 80% LTV that call themselves “No MI” are usually a made at a higher interest rate. Instead of the borrower paying the mortgage insurance premiums directly, they pay a higher interest rate to the lender, which then pays the mortgage insurance themselves. Also, FHA loans and certain first-time homebuyer programs require mortgage insurance regardless of loan-to-value.
mortgage insurance premium (MIP)
The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or a private mortgage insurance company.
The borrower in a mortgage agreement.
Properties providing separate housing units for more than one family, although they secure only a single mortgage.
Some adjustable rate mortgages permit the interest rate to fluctuate independently of a required minimum payment. If a borrower makes the minimum payment, it may not cover all of the interest normally due at the current interest rate. In effect, the borrower is deferring the interest payment, hence the term “deferred interest.” The deferred interest is added to the balance of the loan and the loan balance grows larger instead of smaller, which is called negative amortization.
Assets minus liabilities of a company or individual. Also referred to as shareholders’ equity.
no cash-out refinance
A refinance transaction not intended to provide cash for the borrower. Instead, the new balance is calculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage. Often referred to as a “rate and term refinance.”
Many lenders offer loans that can be obtained at “no cost.” One should inquire whether this means no “lender” costs associated with the loan, or if it also covers other costs one would normally have in a purchase or refinance transactions, including title insurance, escrow fees, settlement fees, appraisal, recording fees, and notary fees. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Like a “no-point” loan, the interest rate will be higher than if one obtains a loan that has costs associated with it.
A non-conforming loan is one that does not meet bank standards for funding. The reasons can range from a lack of sufficient credit to the unorthodox nature of the use of funds or the collateral backing it. In many cases, non-conforming loans can be funded by hard money lenders. The flexibility of private money can allow a wider range of projects to be funded, although additional collateral and documentation may be required by the lender
A legal document obligating a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
The interest rate stated on a mortgage note.
notice of default
A formal written notice to a borrower that a default has occurred and that legal action may occur.
original principal balance
The total amount of principal owed on a mortgage before any payments are made.
The fee a lender charges to perform credit checks, put together loan documents and inspect property.
A property purchase transaction in which the property seller provides all or part of the financing.
A payment not sufficient to cover the scheduled monthly payment on a mortgage loan. Normally, a lender will not accept a partial payment, but may make exceptions in times of hardship.
payment change date
The date a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.
Any property that is not real property.
The acronym for Principal, Interest, Taxes and Insurance. If one has an “impounded” loan, the monthly payment to the lender includes all of these and probably includes mortgage insurance as well. If one does not have an impounded account, the lender will still calculate this amount and use it as part of determining the debt-to-income ratio.
planned unit development (PUD)
A type of ownership in which individuals actually own the building or unit they live in, but common areas are owned jointly with other members of the development or association.
A point is 1% of the amount of the mortgage.
power of attorney
A legal document authorizing another person to act on one’s behalf. A power of attorney can grant complete authority or be limited to certain acts and/or certain periods of time.
A term generally indicating that a borrower has completed a loan application and provided debt, income, and savings documentation that an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount, making assumptions about what the interest rate will be when the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. Once a property is chosen, it must also meet the underwriting guidelines of the lender.
Any amount paid to reduce the principal balance of a loan before the due date, including payment in full on a mortgage that may result from a sale of the property, the owner’s decision to pay off the loan in full, or a foreclosure. In any case, prepayment means payment occurs before the loan has been fully amortized.
A fee that may be charged to a borrower who pays off a loan before it is due.
This refers to the loan officer’s written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings.
The interest rate banks charge to preferred customers. Changes in the prime rate, widely publicized in the news media, are used as the indexes in some adjustable rate mortgages, including home equity lines of credit. Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the interest rates of mortgage loans.
The amount borrowed or that remains unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
The outstanding balance of principal on a mortgage. The principal balance does not include interest or other charges.
principal, interest, taxes, and insurance (PITI)
The four components of a monthly mortgage payment on impounded loans. Principal is the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to amounts paid into an escrow account for property taxes, mortgage insurance, and hazard insurance.
A written promise to repay a specified amount in a specified period of time.
Planned Unit Development (PUD)
A project or subdivision that includes common property that is owned and maintained by a homeowners’ association for the benefit and use of the individual PUD unit owners.
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
A deed transferring, without warranty, whatever interest or title a grantor may have at the time the conveyance is made.
Land that has had no man-made improvements or alterations. Man-made alterations include all structures, such as sewers and streets, and buildings.
real estate agent
A person licensed to negotiate and transact the sale of real estate.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection law requiring lenders to provide borrowers with disclosures and notices of closing costs.
Land and appurtenances, including anything of a permanent nature such as structures, trees, natural resources, and the interest, benefits, and inherent rights thereof.
A real estate agent, broker or associate holding active membership in a local real estate board affiliated with the National Association of Realtors.
The public official who keeps records of transactions affecting real property. Sometimes referred to as a “Registrar of Deeds” or “County Clerk.”
The noting in the registrar’s office of the details of a properly executed legal document, such as a deed, mortgage note, satisfaction or extension of mortgage, thereby becoming part of the public record.
The process of paying off one loan with the proceeds from a new loan using the same property as security.
The amount of principal not yet been repaid.
right of first refusal
A provision in an agreement requiring an owner of a property to give another party the first opportunity to purchase or lease the property before it is offered for sale or lease.
right of ingress or egress
The right to enter or leave designated premises.
right of survivorship
In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.
A technique in which a seller deeds property to a buyer for a consideration, and the buyer simultaneously leases the property back to the seller.
A mortgage with a lien position subordinate to the first mortgage.
A loan backed by collateral.
The property pledged as collateral for a loan.
An agreement in which a property owner provides financing, often combined with an assumable mortgage.
An organization collecting principal and interest payments from borrowers and managing borrowers’ escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
See HUD1 Settlement Statement.
A housing development created by dividing a tract of land into individual lots for sale or lease.
Any mortgage or lien that has lower priority than the first mortgage.
A drawing or map showing precise legal boundaries of a property, location of improvements, easements, rights of way, encroachments, and other physical features.
Contribution to construction or rehabilitation of a property in the form of labor or services rather than cash.
tenancy in common
As opposed to joint tenancy, when two or more individuals own title to a property, this type of ownership does not pass ownership to the others in the event of death.
A company specializing in examining and insuring titles to real estate.
Insurance protecting the lender (lender’s policy) or the buyer (owner’s policy) against loss arising from disputes over ownership of a property.
A check of title records to ensure that the seller is the legal owner of the property and there are no liens or other claims outstanding.
transfer of ownership
Any means by which ownership of a property changes hands. Lenders consider all of the following to be a transfer of ownership: Purchase of a property subject to the mortgage, assumption of the mortgage debt by the property purchaser, and any exchange of possession under a land sales contract or other land trust device.
State or local tax payable when title changes.
A federal law requiring lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.
A fiduciary holding or controlling property for the benefit of another.
A mortgage guaranteed by the Department of Veterans Affairs (VA).
Veterans Administration (VA)
An agency of the federal government that guarantees residential mortgages made to eligible military veterans. The guarantee protects the lender against loss and encourages lenders to make mortgages to veterans.