Financing

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Acceleration

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A demand immediate payment of all amounts remaining unpaid on the loan or extension of credit by a mortgage lender or carryback seller. Also known as "calling the loan"

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Adjustable rate mortgage

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A variable interest rate note based on a particular index, often starting out with an introductory teaser rate, only to reset at a much higher rate in a few months or years.

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Amortization table

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A tabular schedule detailing the apportionment of principal and interest on each periodic payment due on an amortizing loan.

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Annual percentage rate

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The Relative cost of credit ad determined in accordance with regulation Z of the board of governors of the Federal Reserve System for implementing the Federal Truth and Lending Act.

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Amortization

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The liquidation of a financial obligation on an installment basis; recovery over a period of cost or value.

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Anti-deficiency

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A limitation placed on a mortgage lender's ability to recover losses on a default when the secured property value is insufficient to satisfy the mortgage debt

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Applicable federal rate

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Rates set by the Internal Revenue Service for Carryback Sellers to impute and report as minimum interest income when the note rate on the carryback debt is a lesser rate

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A Sumption

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An undertaking or adoption of a debt or obligation primarily resting upon another person.

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Balloon payment

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Any final payment on a note which is greater than twice the amount of any one of the six regular scheduled payments immediately preceding the date of the final/balloon payment.

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Bankruptcy, Chapter 11

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A proceeding in which the homeowners financial obligations are restructured, allowing them to repay their debts over a three to five-year period

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Bankruptcy, chapter 7

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A proceeding in federal court in with the homeowners and assets are liquidated to pay off your debts.

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Blanket mortgage

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A single mortgage which covers more than one piece of real estate

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California housing finance agency. (CalHFA)

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An independent California state agency that makes low-rate housing loans through the sale of taxable and tax exempt bonds.

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Call

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A Lenders demand for balance of the loan to be paid in full

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CalVet

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A program administered by the state department of Veterans Affairs for the great financing of form and home purchases by eligible California veterans of the Armed Forces

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Capitalization rate

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The annual rate of return produced by the operation of an income property or sought by an investor. The Rate is calculated by dividing the net operating income by the price ask or offered for income property

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Closing cost

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The miscellaneous expenses buyers and sellers normally incur in the transfer of ownership of real property over and above the cost of the property

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Closing statement

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An accounting of funds made to the buyer and seller separately. Required by law to be made at the completion of every real estate transaction

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Collateral

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Tangible assets attached to a loan which are worth more than the cash value of the loan

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Construction loan

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A loan made to finance the actual construction or improvement on land. Funds are usually disbursed in increments as the construction progress

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Consumer price inflation

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An increase in the general price level of all goods and services consumed in the economy

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Conventional mortgage

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A mortgage securing a loan made by investors without governmental underwriting, i.e. which is not FHA insured or VA guaranteed. The type customarily made by a bank or Savings and Loan Association.

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Cram down

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Reduction of the principal balance of a loan

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Credit score

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A numerical representation of a borrowers credit worthiness, based on credit report information obtained from a credit bureau.

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Credit worthiness

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An individual's ability to borrow money, determined by the present income and previous debt payment history.

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Debt

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That which is due for one person or another; obligation, liability.

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Debt to income ratio

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Percentage of monthly gross income that goes towards paying their debt.

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Deed-in-lieu of foreclosure

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A deed from a borrower to a mortgage holder conveying title to property which is security for a mortgage, given in consideration for canceling the remaining debt and as an alternative to foreclosure.

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Default

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Failure to fulfill a duty or a promise or to discharge an obligation; omission or failure to perform any actual act.

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deficiency judgment

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A judgment given by a court when the value of security pledged for a loan is insufficient to pay off the debt of the defaulting borrower.

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Deflation

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A fall in the pricing a goods or property (the opposite of information).

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Due-on-clause

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Hey trust deed provision use my lender to call the loan due and immediately payable, a right triggered by the owners transfer of any interest in the secured real date.

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Equity

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The interest of value which an owner has in real estate over and above the liens against it. Branch of remedial justice by and through which relief is afforded to suitors in court of equity.

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Federal reserve

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The federal banking system of the United States under the control of central board of governors (federal reserve board) involving a central bank in each of 12 geographical districts with broad powers in controlling credit and the amount of money in circulation

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Financial crisis

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And economic downturn resulting from the failure of banking and government agencies to regulate and adjust to developing market conditions.

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Foreclosure

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Procedure whereby property pledged as security for a debt is soold to pay the debt in the event of default in payment or terms.

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Good faith estimate of cost

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An estimate of a buyers settlement charges and mortgage terms handed to the buyer on a standard form within three business days following the lenders receipt of the mortgage application.

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Government loan programs

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State and federal programs designed to facilitate homeownership, such as Federal housing administration (FHA) insured loans,

US Department of Veterans Affairs (VA) guaranteed loans, and the California housing finance agency (CalHFA)

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Graduated payment mortgage

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A mortgage providing for installment payments to be periodically increase by predetermined amount to provide for an Accelerating Pay off the principal.

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Hard money loan

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Real estate loans made by private lenders funded in cash