What is an expert's estimate of the quality or value of real estate as of a give date?
100
Measure of the cost of credt, expressed as a yearly rate. It includes interest as well as other loan charges such as points, PMI, etc.
What is APR?
100
A loan in which the interest rate does not change during the entire term of the loan.
What is a fixed-rate loan?
100
An optional form of life insurance that pays off a mortgage if the borrower dies.
What is mortgage-life insurance?
100
Decline in value of a house due to wear an tear, adverse changes in the neighborhood, or any other reason.
What is depreciation?
200
Interim loan to finance a buyers new residence if the buyer is unable to sell his/her current residence first.
What is a bridge loan?
200
Principal, Interest, Taxes and Insurance. These components are usually all included in the monthly mortgage payment unless escrows are waived.
What is PITI?
200
A special account set up by a lender to pay for real estate property taxes and insurance when they are collected as part of your monthly loan payment.
What is an escrow account?
200
A right provided under federal law to borrowers who are refinancing or borrowing against their home equity that allows them three days after signing the loan documents to cancel the contract?
What is the Right of Rescission?
200
Fee paid to a real estate agent or broker by the seller as compensation for finding a buyer and completing the sale. Usually it is a percentage of the sale price.
What is commission?
300
The numerous expenses which buyers and sellers normally incur to complete a transaction in the transfer of ownership of real estate. These costs are in addition to the price of the property and are paid at the closing.
What are closing costs?
300
A ratio of a borrowers debt to income ratio.
What is DTI?
300
A type of loan in which the interest rate changes periodically, up or down, usually once or twice a year.
What is an adjustable-rate loan?
300
The recommended number of lenders to compare when shopping for a loan.
What is three?
300
Document which is issued by local governments that states a property meets the local building standards for occupancy. Required for new construction and sometimes for the sale of an existing property.
What is Certificate of Occupancy?
400
Any mortgage loan not insured by HUD or guaranteed by the Veterans' Administration. It is subject to conditions established by the lending institution, Fannie Mae, Freddie Mac, and/or State statutes.
What is a conventional mortgage?
400
The ratio of the loan balance you owe, compared to the appraised value of a home.
What is LTV (loan to value)?
400
A special type of home that lets elderly homeowners convert the equity in their home into regular payments of cash.
What is a reverse mortgage?
400
A loan with fixed monthly payments based on a 30-year schedule on which the entire balance of the loan comes due at the end of a set period of time.
What is a balloon-payment mortgage?
400
A condition put on an offer to buy a home, such as the prospective buyers making an offer subject to the sale of his/her present home or being approved for a mortgage.
What is a contingency?
500
A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, by taking and selling the mortgaged property, and depriving the mortgagor of possession.
What is foreclosure?
500
An insurance policy the borrower buys to protect the lender from non-payment of the loan. This is required for loans where the borrower puts less than 20% down.
What is PMI (private mortgage insurance??
500
A process of deciding whether to make a loan based on your credit reputation, income, debt, appraised value of the house and other factors.
What is underwriting?
500
A dispute resolution mechanism, whereby an independent, neutral third party is appointed to oversee a dispute and render a final binging decision.
What is arbitration?
500
A loan that exceeds the conforming loan limits established by Fannie Mae or Freddie Mac. It has interest rates a little higher than a conforming loan.