Mortgage Dictionary – Thesaurus of Key Mortgage Phrases

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  • Mortgage Dictionary – Thesaurus of Key Mortgage Phrases
    Mortgage Dictionary – Thesaurus of Key Mortgage Phrases

    Is your monetary institution or dealer complex you with huge phrases? Would you esteem to sound a complete lot savvier when handling your mortgage transaction?This mortgage thesaurus is a exact home to hone up in your mortgage vocabulary to fabricate sense of what can even be a extremely complex route of.The extra you be taught about apparently sophisticated mortgage phrases, the extra anguish you’ll instill in your monetary institution or dealer. Outsmart them early on and they’ll heart of attention on twice sooner than searching out for to overcharge you.Test out the ever-expanding “mortgage dictionary” beneath.  Carry out certain to click on the hyper-linked phrases to assemble a extra detailed definition where appropriate:1031 Change – a tax-deferred alternate of proper estate employed to offset and even steer decided of capital beneficial properties tax.15-Year Fastened Mortgage – a mounted-price house mortgage that has half of the standard length of time of 30 years.203k Loan – an FHA mortgage that allows you to finance house enhancements and permanent financing in a single mortgage mortgage.Three/1 ARM – An ARM that is mounted for the foremost three years (36 months) of the mortgage length of time sooner than turning into every year adjustable.5/1 ARM – An ARM that doesn’t hold its first adjustment until year six, and then adjusts as soon as every year thereafter.Adjustable-Fee Mortgage (ARM) – a mortgage with a variable ardour price, which adjusts month-to-month, biannually, or every year. Option-arms and hybrid mortgages are also thought of adjustable-price mortgages.Alt-A Mortgage – a house mortgage that isn’t top or subprime, nonetheless someplace within the center.Amortization – the vogue a mortgage is paid off over time in installments, detailing how much goes toward ardour, and the easiest scheme much is paid toward fundamental.Annual Percentage Fee (APR) – the instruct ardour price you pay in your mortgage, which components in costs, aspects, and other prices linked with the mortgage.Assumption – the act of assuming responsibility for the price of a mortgage lien.Balloon Mortgage – a immediate mortgage with small month-to-month installments and a gargantuan lump sum due on the head of the mortgage length of time. An example would be a 30 due in 15, which amortizes esteem a 30 year mounted, nonetheless is due 15 years earlier.Biweekly Mortgage – a mortgage where 26 half of payments, or thirteen elephantine payments, are made every year.Blanket Mortgage – a single house mortgage used to present financing for added than one properties, much like condominium objects.Bridge Loan – a immediate time length mortgage taken out towards one property to finance the acquisition of a brand original property.Purchase-Down – the act of securing a lower than par ardour price by paying the monetary institution a lender a top class.Caps – preliminary, periodic, and lifetime cost caps which limit how much and the easiest scheme continually an ardour price can change on an adjustable-price mortgage.Cash-In Refinance – a refinance transaction where borrowers carry money to the closing table to lower their mortgage balance.Certificates of Cheap Cost (CRV) – an appraisal issued by the Veterans Administration to fetch out the price of a property. The mortgage amount could per chance perhaps also no longer exceed the CRV on a VA mortgage.Closing – the closing step within the mortgage route of when mortgage documents are signed at an escrow or title firm.Closing Costs – the amount of money that must be paid to shut your mortgage, at the side of lender costs and 1/Three-celebration prices, along with taxes and transfer costs.Combo Loan – a first and 2nd mortgage used similtaneously to finance a property.Conforming Loan – a mortgage that meets Fannie Mae and Freddie Mac pointers, which also falls below a undeniable mortgage amount.Construction Loan – a immediate mortgage given to a builder throughout intervals of the constructing route of which is due upon completion of the project.Historical Mortgage – any mortgage mortgage that shouldn’t be any longer insured or guaranteed by the federal govt.Credit rating Report – a tool used by the monetary institution or lender to take a look at your credit rating profile and your skill to carry and repay debt.Credit rating Ranking – a three-digit quantity that is used by lenders to evaluate your creditworthiness. There are minimum scores for tons of house mortgage programs.Debt-to-Profits Ratio – the ratio of month-to-month liabilities and housing payments divided by the month-to-month tainted earnings of the borrower.Deed-in-Lieu of Foreclosure – a skill of fending off foreclosure by deeding your house to the lender.Deed of Belief – a security instrument between the borrower and the lender, recorded in public files as a lien on the subject property. It differs from a mortgage in that the monetary institution can foreclose on the property with out judicial complaints.Deferred Hobby – the amount of ardour added to the fundamental mortgage balance when a borrower pays lower than the ardour-most attention-grabbing deliver price (explore: option arm).Delinquency – the failure to fabricate a month-to-month mortgage cost on time, which might perhaps indirectly lead to a ogle of default, and later a foreclosure.Good deal Fee – the ardour price the Federal Reserve affords to member banks and thrifts.Doctor Mortgage – a mortgage designed namely for a doctor that will per chance per chance perhaps also enable financing sooner than employment history is established.Down Cost – an upfront cost made by the house buyer toward the property consume designate, in most cases starting from 5 to twenty %. The leisure of the sales prices makes up the mortgage mortgage amount.Earnest Cash – a deposit paid to the seller by the patron as a pledge to complete a proper estate transaction. If the seller accepts the provide, the deposit is held in escrow and applied to closing prices when the deal is closed.Equal Credit rating Replacement Act – a federal laws that prevents lenders from discriminating applicants in step with mosey, religion, nationwide beginning do, intercourse, age, marital attach or involvement in public assistance programsEscrow – a 1/Three celebration intermediary who holds and allocates funds, at the side of taxes and insurance coverage in a mortgage transaction.Federal Funds Fee – the ardour price banks price every other for overnight consume of excess reserves.Federal Home Loan Mortgage Corporation – thought to be one of the finest financiers of outmoded mortgages on the secondary market. Successfully is named Freddie Mac.Federal National Mortgage Corporation – a publicly owned, govt-backed corporation that packages mortgages and resells them on the secondary market. Additionally is named Fannie Mae.FHA Loan – a program originated throughout The Substantial Despair that allows lower earnings borrowers to qualify for mortgages as prolonged as they match certain standards self-discipline forth by the Federal Housing Administration who insures them.First-Time Home Purchaser – in most cases outlined as any individual who has no longer owned one other property at any time throughout the three years before the date of the acquisition.Fastened-Fee Mortgage – a mortgage with a relentless ardour price that shouldn’t be any longer going to alter at any level throughout the lifetime of the mortgage.Foreclosure – the exact route of wherein a monetary institution or lender sells a property after a borrower fails to meet the reimbursement phrases of the mortgage.Gift Letter – a letter required by the borrower when the utilization of gift funds to manufacture a mortgage mortgage.Simply Faith Estimate – a disclosure which small print your mortgage summary and an estimate of the prices you’ll incur upon settlement, now could per chance perhaps be called the Loan Estimate (LE).Graduated Cost Mortgage – a detrimental amortization mortgage with flexible cost recommendations that frequently develop over time until leveling off. Intended for young couples who’re unable to fabricate the elephantine mortgage cost, nonetheless whose earnings will develop over time.Demanding Cash Loan – a mortgage of closing resort for borrowers who can’t manufacture financing within the customary market attributable to inclined credit rating.HARP Loan – a refinance mortgage offered to these with detrimental equity.Hazard Insurance coverage – insurance coverage which protects a property proprietor from damages triggered by fire or extreme weather.Home Appraisal – a comprehensive document that determines the price of your house in step with a lot of valuation components.Home Fairness – the price of a property less any and all existing liens. If a borrower owns a property price $500,000 and has liens of $Four hundred,000, equity is $a hundred,000.Home Fairness Line of Credit rating – a line of credit rating that makes consume of the price of a property as collateral.Impound Story – an story established by the issuing monetary institution/lender or mortgage servicer to salvage month-to-month and robotically pay a borrower’s property taxes and insurance coverage prices when payments are due.Hobby-Handiest Mortgage – a house mortgage that allows you to pay exact the ardour portion of the mortgage cost every month.Funding Property – a property that you just attain no longer make a selection, nonetheless rather rent out to a tenant.Islamic Mortgage – a mortgage that avoids the price or receipt of ardour, which is unlawful below Islamic laws.Jumbo Loan – a mortgage amount above the conforming mortgage limits, which is decided every year by Fannie Mae and Freddie Mac. These loans in most cases carry increased ardour rates than conforming loans because they’ll’t be sold to Fannie or Freddie.Lender Credit rating – a credit rating paid by the lender to the borrower for taking an above-market ardour price.Lender-Paid Mortgage Insurance coverage – the lender pays in your mortgage insurance coverage in alternate for a increased ardour price in your mortgage.Lender Overlay – a tenet (or self-discipline of pointers) as well to these required by Fannie Mae, Freddie Mac, or the FHA/VA.Letter of Explanation – a frequent mortgage condition required to decided up or present additional small print for any topic that needs additional evaluation.Lien – a claim towards a property by the issuing monetary institution or lender to stable reimbursement of a debt, in most cases within the form or a mortgage.Loan Officer – a representative of a monetary institution or dealer who originates mortgages on their behalf.Loan Origination – the initiation of the house mortgage route of whereby a borrower submits their data to a monetary institution or lender in express to manufacture mortgage financing.Loan Processor – the person that handles your total bureaucracy linked with closing your mortgage.Loan-to-Cost – the proportion of the appraised property worth that is borrowed from a monetary institution or lender. A down cost of 20% would fabricate a mortgage-to-worth of eighty%.Margin – a given amount specified by the monetary institution or lender which when added to the accompanying mortgage index objects the ardour price for an adjustable-price mortgage.Mortgage – a immediate mortgage used to finance the acquisition of proper property, also is named a house mortgage.Mortgage Dealer – an just mortgage originator who works on behalf of potentialities to manufacture mortgage financing.  Brokers don’t yell a single monetary institution, nonetheless rather work with tons of lenders.Mortgage Good deal Aspects – a sort of prepaid ardour whereby the borrower lowers the ardour price of the mortgage at closing.Mortgage Due Date – the date your mortgage cost is due every month throughout the mortgage’s length.Mortgagee – the issuing monetary institution or mortgage lender.Mortgage Insurance coverage – required insurance coverage on a mortgage if the down cost is lower than twenty % and a single mortgage is used to finance the property.Mortgage Slack – a length of time utilized within the mortgage industry to identify a late cost that is 30 days or extra previous due.Mortgage Lender – an establishment that originates mortgage loans either to withhold for ardour earnings or promote on the secondary market.Mortgage Cost – the price of your mortgage, paid month-to-month.Mortgage Aspects – stands for a share level of the mortgage amount, in most cases makes up the origination price, that is also a share of a repeat extra than one aspects.Mortgage Major – the balance of the lien(s) on a property, no longer at the side of ardour. What you owe in your mortgage.Mortgage Fee – the price of ardour linked along with your mortgage.Mortgage Fee Lock – the act of locking-in a desired ardour price in your mortgage so it’ll no longer change. Borrowers even hold the solution to hurry with the waft their price.Mortgage Timeframe – the scale of your mortgage. Most are 30 years, even though 15 years could per chance be very frequent.Mortgage Underwriter – the person that decisions your mortgage by either approving, suspending, or declining it.Mortgagor – the borrower or homeowner.Harmful Amortization – when a mortgage cost acquired is beneath the ardour-most attention-grabbing cost, the adaptation will seemingly be added onto the fundamental balance of the mortgage.Ninja Loan – no earnings, no job, no asset mortgage. A “Ninja mortgage” is industry slang for a no doc mortgage, which doesn’t require earnings, asset, or job verification.  NoIncomeNoJobAssets.  It’s no longer namely for Ninjas, unless they’ve got something to veil.No Closing Cost Refinance – a refinance transaction wherein the monetary institution or dealer pays all settlement prices.Display – a written promise to repay the mortgage plus ardour, which incorporates the title of the borrower, issuing lender, and the phrases and provisions.Option Arm – a house mortgage that affords borrowers four cost recommendations, at the side of a detrimental amortization cost option.Origination Fee – a share of the mortgage amount charged by the monetary institution or dealer for polishing off the mortgage route of.Par Fee – the ardour price a borrower will qualify for assuming there might perhaps be no price manipulation.Cost Shock – a sudden, gargantuan develop within the month-to-month mortgage cost attributable to an adjustable-price mortgage or by a refinance with original financing phrases.Piggyback Mortgage – a 2nd mortgage that closes concurrently with the foremost mortgage to reduce assist the total foremost down cost.PITI – the month-to-month housing expense, expressed as fundamental, ardour, taxes, and insurance coverage (explore: mortgage cost).Pre-Approval/Pre-Qualification – processes to fetch out what you could per chance perhaps also afford to fabricate decided you could per chance perhaps also manufacture mortgage financing when procuring a property.Prepayment Penalty – if a mortgage is refinanced or repaid before a undeniable date as agreed upon within the mortgage documents, a price will seemingly be charged by the monetary institution or lender.Main Area – a house or apartment you intend to come to a decision the bulk of the year.Prime Fee – the ardour price offered by industrial banks to its perfect corporate customers.Settle on Cash Mortgage – a mortgage used to consume a chunk of property.Good Mortgage – a house mortgage that meets original underwriting pointers established by the CFPB.  Additionally is named a QM mortgage.Quitclaim Deed – a document wherein a particular person either disclaims ardour in a property or transfers ardour to 1 other particular person, in most cases a accomplice.Refinance – the act of fixing your existing mortgage(s) with a brand original mortgage on the the same property. There are two foremost kinds of refinancing, at the side of a price and length of time refinance and money-out refinance.Reserve Requirements – the amount of verifiable assets you hold to qualify for a given mortgage.Resetting the Clock – whenever you occur to refinance and lengthen the distinctive mortgage length of time of your mortgage.Reverse Mortgage – a mortgage reserved for householders outmoded sixty two or older who establish shut to tap their house equity with out paying month-to-month mortgage payments.Honest appropriate of Rescission – a laws which permits a homeowner to rescind a contract to refinance their foremost jam within three days of signing mortgage documents .2nd Mortgage – a mortgage taken out within the assist of a first mortgage, either similtaneously or after the truth.Vendor Carryback – when a vendor acts as the monetary institution or lender and carries a 2nd mortgage on the subject property.Short Sale – a foreclosure different where a property is sold for lower than the balance on the linked mortgage.Short Refinance – a refinance transaction where the lender is of the same opinion to lower the price and/or change the length of time despite the mortgage balance exceeding the property worth.Acknowledged Profits Mortgage – a mortgage wherein the borrower does no longer hold to document their earnings.Streamline Refinance – an expedited refinance that requires diminutive underwriting, and could per chance perhaps also even forego the necessity for an appraisal.Subprime Mortgage – a house mortgage reserved for oldsters which hold marginal credit rating or project qualifying for a feeble mortgage.Teaser Fee – the preliminary, discounted ardour price offered on adjustable-price mortgages.Title Insurance coverage – safety towards complaints and claims tied to the chain of title on the subject property.Underwater Mortgage – a mortgage whose balance exceeds the price of the property.  Additionally is named an “the inaccurate scheme up” mortgage.USDA mortgage – a mortgage insured by the USDA that allows borrowers to consume properties in rural areas with nothing down.VA Mortgage – a mortgage offered to veterans and their households that is guaranteed by the Veterans Administration.Yield Spread Top class – the commission mortgage brokers used to receive from banks and mortgage lenders by originating loans.Zero Down Mortgage – a house mortgage that doesn’t require a down cost.Zestimate – the estimated market worth of a chunk of property in step with Zillow’s algorithm.

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