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Real Estate Financing

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Real Estate Financing

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1. Loan origination fee

Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage - including payments.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.

2. Foreclosure

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage - including payments.

3. Balloon payment

Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage - including payments.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.

4. Assumption of mortgage

A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.Acquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage - including payments.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.

5. Short sale

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A sale in which the proceeds do not cover the owed amount; unless the holders of the liens agree to accept less - the mortgagor must bring funds to closing.

6. Adjustable-rate mortgage (ARM)

A loan characterized by a fluctuating interest rate - usually one tied to a bank or savings association cost-of-funds index.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.

7. Junior lien

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.An obligation - such as a second mortgage - that is subordinate in right or lien priority to an existing lien on the same realty.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

8. Growing equity mortgage (GEM)

A loan in which the monthly payments increase annually - with the increased amount being used to directly reduce the outstanding principal balance and thus shorten the overall term of the loan.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

9. Shared-appreciation mortgage (SAM)

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A mortgage loan in which the lender - in exchange for a loan - with a favorable interest rate - participates in the profits (if any) the borrower receives when the property is eventually sold.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

10. Principal

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).(1) A sum loaned or employed as a fund or an investment - as distinguished from its income or profits; (2) the original amount (as in a loan) of the total due and payable at a certain date; (3) a main party to a transaction - the person for whom the agent works.

11. Open-end loan

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A mortgage loan that is expandable by increment up to a maximum dollar amount - the full loan being secured by the same original mortgage.

12. Usury

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.Charging interest at a higher rate than the maximum rate established by state law.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.

13. Nonconforming loan

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).Any loan that does not conform to the Fannie Mae/Freddie Mac guidelines.

14. Loan-to-value ration (LTV)

The ratio of debt to value; lenders consider a LTV greater than 80% as higher risk and often require mortgage insurance.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

15. FHA-insured loan

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A loan insured by the Federal Housing Administration and made by an approved lender in accordance with the FHA's regulations.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

16. Redemption

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.The right of a defaulted property owner to recover property by curing the default.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

17. Hypothecate

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.To pledge property as security for a loan.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

18. Construction loan

A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A short-term loan usually made during the construction phase of a building project.

19. Mortgage

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A conditional transfer or pledge of real estate as security for the payment of a debt. Also the document creating a mortgage lien.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

20. Prepayment penalty

A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A charge imposed on a borrower who pays off the loan principal early. This penalty compensates the lender for interest and other charges that would otherwise be lost.

21. Take-out loan

A type of long-term financing (usually) on a piece of real property. They are usually mortgages with fixed payments that are amortizing.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

22. Installment contract

A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A contract for the sale of real estate whereby the purchase price is paid in periodic installments by the purchaser - who is in possession of the property even though title is retained by the seller until a future date - which may not be until final payment.

23. Buydown

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down - or lower - the effective interest rate paid by the buyer - thus reducing the monthly payments for a set time.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

24. Title theory

A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.Some states interpret a mortgage to mean that the lender is owner of mortgaged land. Upon full payment of the mortgage debt - the borrower becomes the landowner.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

25. Discount points

A unit of measurement used for various loan charges; one point equals 1% of the amount of the loan.A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.A legal procedure whereby property used as a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.A fee charged by lenders to cover the expense in generating a loan. These fees vary in amount and usually figured in points (with 1 point equal to 1% of the loan amount).

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

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About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
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Without work one finishes nothing. - Ralph Waldo Emerson
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