ACRONYMS
CUSO
WHAT IS A CREDIT UNION SERVICE ORGANIZATION?
THIS IS REQUIRED IF THE LTV IS ABOVE 80%.
WHAT IS MORTGAGE INSURANCE?
THIS FORM USES CLEAR LANGUAGE AND IS DESIGNED TO HELP BORROWERS BETTER UNDERSTAND THE TERMS OF THE MORTGAGE LOAN APPLIED FOR.
WHAT IS A LOAN ESTIMATE?
THE LENDER'S FEE CHARGED TO A BORROWER, TYPICALLY STATED AS A PERCENTAGE.
WHAT IS AN ORIGINATION FEE?
A MORTGAGE THAT A LENDER ORIGINATES AND RETAINS.
WHAT IS A PORTFOLIO LOAN?
DTI
WHAT IS DEBT-TO-INCOME?
THIS IS SET UP TO PAY YOUR HOMEOWNER'S INSURANCE AND PROPERTY TAXES.
WHAT IS AN ESCROW ACCOUNT?
IF YOUR LOAN AMOUNT CHANGES, THIS DOCUMENT ACCOMPANIES YOUR LOAN ESTIMATE OR CLOSING DISCLOSURE.
WHAT IS A CHANGE OF CIRCUMSTANCE?
THE PROCESS OF DETERMINING HOW MUCH MONEY A HOMEBUYER WILL BE ELIGIBLE TO BORROW.
WHAT IS A PRE-QUALIFICATION?
LOAN REPAYMENT ON THIS TYPE OF LOAN MAY INCLUDE INCREASED OR DECREASED PAYMENTS DUE TO THE VARYING RATE.
WHAT IS AN ARM LOAN?
PITI
WHAT IS PRINCIPAL, INTEREST, TAXES AND INSURANCE?
THIS TERM IS USED TO DESCRIBE REDUCING A LOAN WITH PAYMENTS COVERING PRINCIPAL AND INTEREST.
WHAT IS AMORTIZATION?
A FORMAL WAY OF NOTIFYING A LENDER THAT YOU WANT TO MOVE FORWARD WITH YOUR MORTGAGE APPLICATION.
WHAT IS AN INTENT TO PROCEED (ITP)?
THIS IS THE TOTAL DEBT OWED BY A BORROWER INCLUDING ANY CURRENT OR POTENTIAL MORTGAGES COMPARED TO BORROWER'S TOTAL INCOME DISPLAYED AS A PERCENTAGE.
WHAT IS THE DEBT TO INCOME RATIO (DTI)?
IN THE EVENT OF A FORECLOSURE, THE LENDER IS PROTECTED BY MORTGAGE INSURANCE ISSUED BY THE GOVERNMENT ON THIS TYPE OF LOAN.
WHAT IS A FHA LOAN?
URLA
WHAT IS UNIFORM RESIDENTIAL LOAN APPLICATION?
THIS PROTECTS BORROWERS AND MORTGAGE LENDERS AGAINST DEFECTS OR PROBLEMS WHEN THERE IS A TRANSFER OF REAL ESTATE PROPERTY OWNERSHIP.
WHAT IS TITLE INSURANCE?
WHEN A BORROWER PROVIDES THE FOLLOWING: NAME, INCOME, SOCIAL SECURITY NUMBER, ADDRESS, ESTIMATED VALUE, AND LOAN AMOUNT, IT IS CALLED THIS.
WHAT IS AN APPLICATION?
THE PROCESS OF FINALIZING A REAL ESTATE TRANSACTION.
WHAT IS SETTLEMENT OR CLOSING?
THIS LOAN TYPE IS USED TO PAY OFF MULTIPLE DEBTS (INCLUDING A MORTGAGE, IF APPLICABLE).
WHAT IS A CASH-OUT REFINANCE?
APR
WHAT IS ANNUAL PERCENTAGE RATE?
A REPRESENTATION OF AN INTEREST RATE ALONG WITH OTHER ADDITIONAL CHARGES THAT ONE PAYS TO GET A LOAN.
WHAT IS APR?
USED TO CONVEY FINAL COSTS AND FIGURES ON A TRANSACTION TO A BORROWER.
WHAT IS A CLOSING DISCLOSURE?
AN OFFER BY A LENDER TO GUARANTEE THE INTEREST RATE OF YOUR LOAN FOR A SPECIFIC PERIOD OF TIME.
WHAT IS A RATE LOCK?
EXPENSES INCURRED BY BUYERS WHEN PURCHASING REAL ESTATE.
WHAT ARE CLOSING COSTS?