Loans Flashcards
Buy down
Fixed mortgage rate that is “bought down” for a temp period. Usually used by the seller for incentive for someone to buy their property. Have to pay a lump sum
Cash out Refinance
Refinances mortgage for a higher amount than the current loan balance with intention to pull out personal use money
Cert of deposit index
One of the indexes to determine the interest rate changes on some ARMs. Average of what banks are paying in cert of deposit
certificate of eligibility
The document issued by veterans administration that certifies a veterans eligibility for a VA loan
Certificate of reasonable value
Once the appraisal has been performed on a property been bought with a VA loan the veterans administration issues a CRV
Cloud on title
Any conditions revealed by a title search that adversely affect the title to real estate usually cloud on title cannot be removed except by deed release or court action
Common area assets
Also known as homeowners association fees they are charges paid to the homeowners association by the owners of the individual units in a condo or a PUD and are generally used to maintain the property and common areas
Condominium conversion
Changing ownership of an existing building to the condominium form of ownership
Co-op or cooperative
A type of multiple ownership in which the residents of a multiunit housing complex own Shares in the co-op corporation that owns the property given each resident the right to occupy a specific unit or apartment
Cost of funds index
Another type of index that shows the changes of ARMs it is the weighted average cost of savings borrowings and advances of the financial institutions such as banks and savings and loans
Debt in lieu
Deed in lieu of foreclosure. Conveys title to the lender when the borrower is in default and wants to avoid foreclosure
Deed of trust
Basically recording mortgages
Discount points
Refer to any points paid in addition to the 1% loan origination fee a point is 1% of the loan amount
Earnest money deposit
deposit made by the potential home buyer to show that he or she is serious about buying the house
Effective age
And appraisers estimate of the physical condition of the building the actual age of the building could be shorter or longer that’s effective age
Encroachment
An improvement the intrudes illegally on another’s property
Equity
The difference between the fair market value of the property and the amount still owed on the mortgage and other liens
bridge loan
People use these when you haven’t sold your previous property but want to close on your purchase property.
Escrow analysis
Once a year your lender will perform in escrow analysis to make sure they are collecting the right amount of money for the anticipated expenditures
Escrow disbursements
The use of escrow funds to pay for real estate taxes insurance and mortgage insurance another property expenses as they come due
Fannie Mae
The largest supplier home mortgage funds congressionally chartered shareholder owned company
Fannie Mae’s community homebuyers program
That income-based community lending program which offers flexible underwriting guidelines to increase buying power and how are any must attend pre-purchased from our education
Federal housing administration
And agency of the HUD its main activity is insuring residential mortgage loans made by private lenders it set standards for construction underwriting but is not lend money
FHA mortgage
A mortgage that is insured by the FHA along with VA loan and FHA loan is often called a government loan
Firm commitment
A lenders agreement to make a loan to a specific borrower on a specific property
Government loan mortgage
Hey mortgage hasn’t shared by the Federal housing ministration or guaranteed by the department of Veterans Affairs or the rural housing service mortgages are not government loan or conventional loan
Government national mortgage Association or Ginnie Mae
Same thing as Fannie Mae and Freddie Mac and providing funds to lenders for making home loans just that it provides for government loans like the FHA and the VA
Grantee
The person to whom an interest in real property is conveyed
Grantor
The person conveying an interest in real property
Home equity conversion mortgage
Also known as a reverse annuity mortgage. lender makes payments to you enables older home owners to convert the equity they have in their in their homes to cash
Homeowners warranty
A type of insurance often purchased by homebuyers that will cover repairs to certain items like AC and heating at if they were to break down within the coverage.
HUD1
Also known as the closing statement or settlement sheet it provides an Itemised listing of the funds that were paid at closing
Joint tenancy
A form of ownership that means each party owns the whole property and the ownership is not separate in the event of a death of one party at survivor owns the property in its entirety
Jumbo loan
Illona exceeds Fannie Mae and Freddie Mac’s loan limits also known as a non-conforming loan
Leasehold estate
A way of holding title to property where in the mortgage or does not actually own the property but rather has a record a long-term lease on it
Line of credit
In agreement by a commercial bank or other financial institution to extend credit up to a certain amount for certain time to specified borrower
Loan servicing
After you get the loan the come do you make the payments to a service senior loan they process the payments send the statements manage the account and provide collection efforts on delinquent loans ensure that the shirts and property taxes are made on the property etc.
Merged credit report
A credit report which reports on the raw data pulled from two or more of the major credit repositories
Mortgagor versus mortgagee
The mortgagee is the lender in the mortgage or is the borrower
Mortgage banker
Generally assumed to originate and find their own loans with her so what on the secondary market usually to Fannie Mae Freddie Mac or Ginnie Mae
Mortgage broker
Hey mortgage company that originate loans at places those loans with a variety of other lending institutions with him they usually have a preestablished relationship
Mortgage life and disability insurance
A type of term life insurance often bought by borrowers the Val coverage decreases as the principal balance declines some policies also cover the borrower and event of disability and also death
No cash out refinance
Not intended to put cash in hand the bar were instead the new balances come glad to cover the balance due on the current loan any cost associated with obtaining the new mortgage often referred to as a rate and term refinance
Origination fee
On a government loan the loan origination origination fee is 1% a lot about but additional points and recharge would you call discount points one point equals 1% a lot about on conventional loans a lot origination fee refers to the number of points borrower pays
Owner financing
A property purchase transaction in which the property seller provides all or part of the financing
P ITI
Principal interest taxes and insurance in pounded loan that you have all these included if you do not have it and pounded account then the lender still calculate system out and use it as a part of determining your debt to income ratio
P ITI reserves
The cash amount that a borrower must have on he had after making a down payment and pay all closing costs for the purchase of a home it must equal the amount that the buyer would have to pay for the PRT I for a predefined number of months
Real estate settlement procedures act RESPA
I consumer protection law that requires lenders to get borrowers advanced notice of closing costs
Replacement reserve fund
A fund set aside for replacement of common property and a condo or cooperative project particularly that would have a short life expectancy such as carpet
Revolving debt
Kind of like a credit card which allows the customer to borrow against a preapproval line of credit when purchasing goods and services the borrower is billed for the amount that it actually borrowed plus any interest due
Sale-leaseback
A technique in which a seller deeds property to a buyer for consideration and the buyer simultaneously leases the property back to the seller
Seller carry back
An agreement in which the owner of the property provides financing often in combination with an assumable mortgage
