Mortgage Dictionary

A

Acceleration Clause

Additional Principal Payment

Adjustable-Rate Mortgage (ARM)

Adjusted Basis

Adjustment Date

Adjustment Period

Affordability Analysis

Amortization

Amortization Term

Annual Percentage Rate (APR)

Appraisal

Appraised Value

Asset

Assignment

Assumability

Assumption Fee

B

Balance Sheet

Balloon Mortgage

Balloon Payment

Before-tax Income

Biweekly Payment Mortgage

Bridge Loan

Broker

Buydown

C

Cap

Certificate of Eligibility

Certificate of Reasonable Value (CRV)

Change Frequency

Closing

Closing Costs

Compound Interest

Consumer Reporting Agency (or Bureau)

Conversion Clause

Credit Report

Credit Risk Score

D

Deed of Trust

Default

Delinquency

Deposit

Discount

Down Payment

E

Effective Gross Income

Equity

Escrow

Escrow Disbursements

Escrow Payment

F

Fannie Mae

FHA Mortgage

FICO Score

First Mortgage

Fixed Installment

Fixed-Rate Mortgage (FRM)

Fully Amortized ARM

G

GNMA

Growing-Equity Mortgage (GEM)

Guarantee Mortgage

H

Housing Expense Ratio

HUD-1 statement

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)

I

Index

Initial Interest Rate

Installment

Insured Mortgage

Interest

Interest Accrual Rate

Interest Rate Buydown Plan

Interest Rate Ceiling

Interest Rate Floor

L

Late Charge

Lease-Purchase Mortgage Loan

Liabilities

Lifetime Payment Cap

Lifetime Rate Cap

Line of Credit

Liquid Asset

Loan

Loan-to-Value (LTV) Percentage

Lock-In Period

M

Margin

Maturity

Monthly Fixed Installment

Mortgage

Mortgage Banker

Mortgage Broker

Mortgage Insurance

Mortgage Insurance Premium (MIP)

Mortgage Life Insurance

Mortgagor

N

Negative Amortization

Net Worth

Non Liquid Asset

Note

O

Origination Fee

Owner Financing

P

Payment Change Date

Periodic Payment Cap

Periodic Rate Cap

PITI Reserves

Points

Pre-Approval

Prepayment Penalty

Prime Rate

Principal

Principal Balance

Principal, Interest, Taxes, and Insurance (PITI)

Private Mortgage Insurance (PMI)

Q

Qualifying Ratios

R

Rate Lock

Real Estate Agent

Real Estate Agent®

Recording

Refinance

Revolving Liability

S

Secondary Mortgage Market

Security

Seller Carry-back

Servicer

Standard Payment Calculation

Step-Rate Mortgage

T

Third-party Origination

Total Expense Ratio

Treasury Index

Truth-in-Lending

Two-step Mortgage

U

Underwriting

V

VA Mortgage

W

Wrap Around Mortgage

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2/1 Buy Down Mortgage