Realestate

Front 1

Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof

Back 1

real property

Front 2

any property that isn't real property

Back 2

personal property

Front 3

A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time

Back 3

note

Front 4

A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons

Back 4

acceleration clause

Front 5

A fee that may be charged to a borrower who pays off a loan before it is due.

Back 5

prepayment penalty

Front 6

A legal document that pledges a property to the lender as security for payment of a debt.

Back 6

mortgage

Front 7

The borrower in a mortgage agreement

Back 7

mortgagor

Front 8

the lender in the mortgage agreement

Back 8

mortgagee

Front 9

A legal claim against a property that must be paid off when the property is sold.

Back 9

lien

Front 10

Refers to home loans other than government loans

Back 10

conventional mortgage

Front 11

The mortgage that is in first place among any loans recorded against a property

Back 11

first mortgage

Front 12

is a mortgage placed on real estate in exchange for cash to the borrower

Back 12

equity loan

Front 13

a United States federal official who regulates the national banks the agency of the Treasury Department responsible for controlling the currency

Back 13

comptroller of the currency

Front 14

a central bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes

Back 14

Reserve Ratio Requirement

Front 15

the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System

Back 15

discount rate

Front 16

the interest rate at which private depository institutions (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions, usually overnight

Back 16

fed funds rate

Front 17

The interest rate that banks charge to their preferred customers

Back 17

prime rate

Front 18

1 percent of the amount of the mortgage

Back 18

point

Front 19

An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition

Back 19

escrow

Front 20

A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness

Back 20

Credit Union

Front 21

generally assumed to originate and fund their own loans, which are then sold on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginnie Mae

Back 21

mortgage banker

Front 22

A mortgage company that originates loans, then places those loans with a variety of other lending institutions with whom they usually have pre-established relationships.

Back 22

mortgage broker

Front 23

the removal of intermediaries in a supply chain

Back 23

disintermediation

Front 24

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index

Back 24

adjustable rate mortgage

Front 25

Seller financing in the sale of a property, as opposed to a mortgage obtained through a bank, S&L or other third-party.


Back 25

purchase money mortgage

Front 26

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal.

Back 26

amortization

Front 27

an exorbitant or unlawful rate of interest

Back 27

usury

Front 28

Failure to make the mortgage payment within a specified period of time

Back 28

default

Front 29

The legal document conveying title to a property

Back 29

deed

Front 30

a federally sponsored corporation that insures accounts in national banks and other qualified institutions

Back 30

Federal Deposit Insurance Corp

Front 31

a mortgage that, in the first year or several years of the loan, allows the borrower three or four options with regard to how much to pay on the loan each month

Back 31

option ARM

Front 32

Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan

Back 32

caps

Front 33

a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage

Back 33

APR

Front 34

If a borrower makes the minimum payment it may not cover all of the interest that would normally be due at the current interest rate

Back 34

negative amortization

Front 35

A loan in which only interest is paid during the term of the loan, with the entire principal amount due with the final interest payment

Back 35

straight term loan

Front 36

The final lump sum payment that is due at the termination of a balloon mortgage.

Back 36

balloon

Front 37

a type of loan used to fund the purchase of more than one piece of real property

Back 37

blanket mortgage

Front 38

a method of financing in which the loan that finances the purchase of a home also finances the purchase of certain items of personal property

Back 38

package mortgage

Front 39

refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years

Back 39

buydown loan

Front 40

mortgage with low initial monthly payments which gradually increase over a specified time frame

Back 40

graduated payment mortgage

Front 41

Mortgage for which the unpaid balance is refinanced every few years at then-current rates

Back 41

rollover mortgage

Front 42

Actual interest rate, as specified in the mortgage note, that the borrower has agreed to pay.


Back 42

contract rate

Front 43

The base rate used by a lender to measure the difference between the current interest rate charged on an adjustable-rate mortgage (ARM) and that earned by other types of investment

Back 43

index rate

Front 44

- the loan takes the form of monthly payments or loan advances or even a lump sum which a senior uses to purchase an annuity. The property serves as collateral and the loan and accrued interest are not paid until after a specified term.


Back 44

reverse annuity mortgage

Front 45

involves a first mortgage and second mortgage to purchase or refinance a home

Back 45

hybrid mortgage

Front 46

a contract between a seller and buyer of real property in which the seller provides financing to buy the property for an agreed-upon purchase price and the buyer repays the loan in installments

Back 46

land contract

Front 47

The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property

Back 47

foreclosure

Front 48

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

Back 48

judgement

Front 49

the right of a debtor whose real property has been foreclosed upon and sold to reclaim that property if they are able to come up with the money to repay the amount of the debt

Back 49

right of redemption

Front 50

a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full

Back 50

deficiency judgement

Front 51

this conveys title to the lender when the borrower is in default and wants to avoid foreclosure.

Back 51

deed in lieu of foreclosure

Front 52

means all other real estate owned (ie, foreclosed and repossessed real estate), reported on a regulatory financial report, and does not include direct and indirect investments in real estate ventures

Back 52

Other Real Estate Owned (OREO)

Front 53

refers to the process that a large financial service provider (bank, insurer, investment house) uses to assess the eligibility of a customer to receive their products (equity capital, insurance, mortgage or credit)

Back 53

underwriting

Front 54

Prohibits credit discrimination based on age, race, color, religion, national origin, sex, marital status, the receipt of public assistance, or if an applicant has exercised a right under the Consumer Credit Protection Act and requires creditors to notify applicants of action taken on their applications.

Back 54

Regulation B: ECOA

Front 55

requires lending institutions to report public loan data

Back 55

Regulation C: HMDA

Front 56

Under Reg Z, credit card issuers are required to disclose the terms and conditions to potential and existing cardholders at the point of account opening and at regular intervals

Back 56

Regulation Z

Front 57

must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA)

Back 57

Good Faith Estimate

Front 58

three C's of Credit

Back 58

character, capacity, capital

Front 59

provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults

Back 59

private mortgage insurance

Front 60

lenders are required by law to provide applicants with timely notice of adverse action, such as denial of credit applications

Back 60

notice of adverse action

Front 61

Three approaches to appraisal

Back 61

cost approach, sales comparison approach, income approach

Front 62

The right of a purchaser of a new issue to withdraw from the purchase agreement within the specific province's applicable time limits if the prospectus contained an untrue statement or omitted a material fact.


Back 62

right of rescission

Front 63

A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding.

Back 63

title search