GMK Loan Terms Flashcards
Short Sale
A short sale is when the lender agrees to a reduced payoff on a loan when the subject property is sold
Deed-in-lieu of Forclosure
When the owner doesn’t want to avoid foreclosure, so they voluntarily give the deed to their property to the lender (Savage AF)
Amortization
Payment of enough principal and interest to ensure complete repayment of the loan.
Neg Amortization
When monthly payments are not large enough to pay all the interest due on the loan.
Earnest Money
Money paid by the borrower to the seller at the time of entering a contract to indicate intent and ability of the buyer to carry out the contract
Escrow Account (Impound accounts)
An account in which the borrower deposits money for property taxes and hazard insurance payments. Impounds are mandatory for FHA and VA loans and Conventional with a LTV higher than 80%
Finance Charge
the coast of a loan expressed as a dollar amount. Finance charges can include many items such as loan fees, Misc. fees, per diem interest, MI, escrow etc.
PFC
Prepaid Finance Charge
POC
Paid outside of closing
Sales Contract
Legal agreement between buyer and seller detailing the terms and condition of the sale of real estate.
Service Release Premium
Lenders Profit and is not disclosed anywhere
Yield Spread Premium
Brokers Profit and is disclosed on both the LE and the CD
