The date when a new, monthly payment amount takes effect on an adjustable-rate mortgage.
Interest charged or accrued daily.
A limit on the amount that minimum payments can increase or decrease during any one adjustment period when the interest rate and minimum payment for an adjustable-rate mortgage fluctuate independently. This can lead to negative amortization when the monthly interest amount exceeds the payment amount.
For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease during any one rate adjustment.
A type of ownership where individuals own the building or unit they live in, but common areas are owned jointly with the other members of the development or association.
One percent of the amount of a mortgage. Paying a point at closing can lower the interest rate you pay for a mortgage.
A legal document that authorizes another person to act on one's behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.
A written document provided by a lender that provides the borrower with a guideline regarding the type and amount of mortgage he or she can obtain. This is often more formal than a pre-qualification as it may require validation through written documentation and other methods.
A written document provided to potential borrowers that gives a general understanding of the amount and type of mortgage he/she can will qualify for. In general, a pre-qualification is considered to be less formal than a pre-approval (see above) as it is often provided based on verbal information provided by the potential borrower with little or no documentation.
Interest that is paid for the period of time between the closing date and one month before the first mortgage payment date. The date that you close will impact the amount of the prepaid interest you must pay at closing and the total funds you will be required to bring to closing.
A fee that may be charged to a borrower who pays off all or a portion of a loan before the expiration of a time period that is designated either in the loan note or in a rider. This penalty is often waived or reduced in the event that the loan is being paid off as the result of a sale of the property.
The interest rate that banks charge to their preferred customers. Often is used as the index for home equity lines of credit.
The amount borrowed or amount remaining to be paid on a loan.
The original amount of your mortgage or the amount outstanding on your mortgage excluding interest, late fees, penalties, or other charges.
Insurance paid for by borrowers that protects lenders from loss if a borrower defaults. Most lenders generally require PMI when the borrower obtains a loan that is greater than 80% of the mortgaged property's value.
A written promise to repay a specified amount over a specified period of time, subject to the conditions detailed in the document.
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. Your ENTITLE DIRECT Closing Specialist will ask for a copy of this document when you are purchasing or selling a property as it will contain much of the information that is necessary to process the closing.
A mortgage that a borrower obtains to purchase a property.
