Mortgage Dictionary – Thesaurus of Key Mortgage Phrases

Home/Blog/Mortgage Dictionary – Thesaurus of Key Mortgage Phrases
  • Advertiser Disclosure

    You’re our first priority.
    Every time.

    We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

    So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

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

    Is your financial institution or dealer complex you with big words? Enact you are attempting to sound a entire bunch savvier when going thru your mortgage transaction?This mortgage thesaurus is a honest place of living to hone up for your mortgage vocabulary to invent sense of what shall be a truly complex project.The extra you know about reputedly complex mortgage phrases, the extra dread you’ll instill for your financial institution or dealer. Outsmart them early on and in inform that they’ll ponder twice earlier than attempting to overcharge you.Examine out the ever-increasing “mortgage dictionary” below.  Form obvious to click on the hyper-linked phrases to glean a extra detailed definition where appropriate:1031 Alternate – a tax-deferred substitute of real property employed to offset or even steer clear of capital gains tax.15-365 days Fastened Mortgage – a troublesome and rapid-payment dwelling loan that has half of the odd length of time of 30 years.203k Mortgage – an FHA loan that lets you finance dwelling improvements and permanent financing in a single mortgage loan.three/1 ARM – An ARM that is mounted for the first three years (36 months) of the loan length of time earlier than changing into yearly adjustable.5/1 ARM – An ARM that doesn’t contain its first adjustment till yr six, and then adjusts once yearly thereafter.Adjustable-Rate Mortgage (ARM) – a mortgage with a variable hobby payment, which adjusts monthly, biannually, or yearly. Option-hands and hybrid mortgages are also thought to be adjustable-payment mortgages.Alt-A Mortgage – a dwelling loan that isn’t prime or subprime, but someplace within the center.Amortization – the manner a loan is paid off over time in installments, detailing how grand goes toward hobby, and one of the best draw grand is paid toward predominant.Annual Share Rate (APR) – the accurate hobby payment you pay for your mortgage, which components in expenses, components, and other expenses connected with the loan.Assumption – the act of assuming accountability for the payment of a mortgage lien.Balloon Mortgage – a momentary mortgage with tiny monthly installments and a keen lump sum due on the pause of the loan length of time. An instance shall be a 30 due in 15, which amortizes love a 30 yr mounted, but is due 15 years earlier.Biweekly Mortgage – a mortgage where 26 half of funds, or thirteen paunchy funds, are made yearly.Blanket Mortgage – a single dwelling loan outdated to beget financing for a pair of properties, equivalent to rental items.Bridge Mortgage – a brief time length loan taken out in opposition to one property to finance the preserve of a brand current property.Purchase-Down – the act of securing a lower than par hobby payment by paying the financial institution a lender a top payment.Caps – initial, periodic, and lifelong payment caps which restrict how grand and one of the best draw continually an hobby payment can commerce on an adjustable-payment mortgage.Money-In Refinance – a refinance transaction where borrowers bring money to the closing table to lower their mortgage balance.Certificate of Cheap Ticket (CRV) – an appraisal issued by the Veterans Administration to resolve the payment of a property. The loan quantity could maybe perchance furthermore no longer exceed the CRV on a VA loan.Closing – the finest step within the loan project when loan paperwork are signed at an escrow or title firm.Closing Costs – the quantity of cash that wants to be paid to end your loan, including lender expenses and 1/three-birthday party expenses, alongside with taxes and transfer expenses.Combo Mortgage – a predominant and 2d mortgage outdated concurrently to finance a property.Conforming Mortgage – a loan that meets Fannie Mae and Freddie Mac guidelines, which also falls below a sure loan quantity.Constructing Mortgage – a momentary loan given to a builder throughout intervals of the building project which is due upon completion of the venture.Regular Mortgage – any mortgage loan that is no longer insured or guaranteed by the federal govt.Credit score Notify – a instrument outdated by the financial institution or lender to overview your credit profile and your skill to raise and repay debt.Credit score Safe – a three-digit quantity that is outdated by lenders to assess your creditworthiness. There are minimal ratings for a big selection of dwelling loan programs.Debt-to-Income Ratio – the ratio of monthly liabilities and housing expenses divided by the monthly wicked earnings of the borrower.Deed-in-Lieu of Foreclosure – a mode of heading off foreclosure by deeding your property to the lender.Deed of Have confidence – a safety instrument between the borrower and the lender, recorded in public records as a lien on the topic property. It differs from a mortgage in that the financial institution can foreclose on the property with out judicial court docket cases.Deferred Passion – the quantity of hobby added to the predominant loan balance when a borrower pays lower than the hobby-easiest dispute payment (belief: option arm).Delinquency – the failure to invent a monthly mortgage payment on time, that could maybe perchance furthermore finally result in a gaze of default, and later a foreclosure.Slash again heed Rate – the hobby payment the Federal Reserve affords to member banks and thrifts.Doctor Mortgage – a mortgage designed namely for a doctor that will enable financing earlier than employment historical previous is established.Down Rate – an upfront payment made by the house purchaser toward the property preserve heed, typically ranging from 5 to 20 p.c. The leisure of the sales prices makes up the mortgage loan quantity.Earnest Money – a deposit paid to the seller by the purchaser as a pledge to entire a real property transaction. If the seller accepts the offer, the deposit is held in escrow and utilized to closing expenses when the deal is closed.Equal Credit score Quite a total lot of Act – a federal law that stops lenders from discriminating candidates consistent with bustle, faith, national initiating, intercourse, age, marital situation or involvement in public aid programsEscrow – a 1/three birthday party intermediary who holds and allocates funds, including taxes and insurance protection in a mortgage transaction.Federal Funds Rate – the hobby payment banks heed one one more for overnight use of extra reserves.Federal Home Mortgage Mortgage Company – one of many largest financiers of passe mortgages on the secondary market. Extensively identified as Freddie Mac.Federal National Mortgage Company – a publicly owned, govt-sponsored company that capabilities mortgages and resells them on the secondary market. Ceaselessly identified as Fannie Mae.FHA Mortgage – a program originated throughout The Astronomical Despair that lets in lower earnings borrowers to qualify for mortgages so long as they fit sure criteria place of living forth by the Federal Housing Administration who insures them.First-Time Home Purchaser – on the complete outlined as somebody who has no longer owned one other property at any time throughout the three years earlier than the date of the preserve.Fastened-Rate Mortgage – a mortgage with a fixed hobby payment that is no longer going to alter at any level throughout the life of the loan.Foreclosure – the comely project in which a financial institution or lender sells a property after a borrower fails to meet the repayment phrases of the loan.Gift Letter – a letter required by the borrower when using reward funds to present a mortgage loan.Factual Faith Estimate – a disclosure which crucial components your loan summary and an estimate of the expenses you’ll incur upon settlement, now identified as the Mortgage Estimate (LE).Graduated Rate Mortgage – a unfavorable amortization mortgage with flexible payment alternatives that delicately raise over time till leveling off. Supposed for younger couples who are unable to invent the paunchy mortgage payment, but whose earnings will raise over time.Spirited Money Mortgage – a mortgage of final resort for borrowers who can’t produce financing within the odd market ensuing from terrible credit.HARP Mortgage – a refinance loan supplied to those with unfavorable fairness.Hazard Insurance protection – insurance protection which protects a property proprietor from damages triggered by fire or extreme climate.Home Appraisal – a comprehensive chronicle that determines the payment of your property consistent with a substitute of valuation components.Home Fairness – the payment of a property less any and all present liens. If a borrower owns a property value $500,000 and has liens of $four hundred,000, fairness is $a hundred,000.Home Fairness Line of Credit score – a line of credit that makes use of the payment of a property as collateral.Impound Story – an tale established by the issuing financial institution/lender or loan servicer to catch monthly and robotically pay a borrower’s property taxes and insurance protection expenses when funds are due.Passion-Most keen Mortgage – a dwelling loan that lets you pay correct the hobby piece of the mortgage payment every month.Investment Property – a property that you attain no longer occupy, but barely lease out to a tenant.Islamic Mortgage – a mortgage that avoids the payment or receipt of hobby, which is in opposition to the law below Islamic law.Jumbo Mortgage – a loan quantity above the conforming loan limits, which is determined every yr by Fannie Mae and Freddie Mac. These loans on the complete raise elevated hobby charges than conforming loans because they’ll’t be supplied to Fannie or Freddie.Lender Credit score – a credit paid by the lender to the borrower for taking an above-market hobby payment.Lender-Paid Mortgage Insurance protection – the lender pays for your mortgage insurance protection in substitute for a elevated hobby payment for your mortgage.Lender Overlay – a tenet (or place of living of guidelines) moreover to those required by Fannie Mae, Freddie Mac, or the FHA/VA.Letter of Explanation – a same outdated loan condition required to sure up or present extra crucial components for any matter that wants extra overview.Lien – a claim in opposition to a property by the issuing financial institution or lender to procure repayment of a debt, on the complete within the beget or a mortgage.Mortgage Officer – a consultant of a financial institution or dealer who originates mortgages on their behalf.Mortgage Origination – the initiation of the house loan project whereby a borrower submits their info to a financial institution or lender in expose to present mortgage financing.Mortgage Processor – the person that handles the entire bureaucracy connected with closing your loan.Mortgage-to-Ticket – the proportion of the appraised property payment that is borrowed from a financial institution or lender. A down payment of 20% would beget a loan-to-payment of Eighty%.Margin – a given quantity specified by the financial institution or lender which when added to the accompanying mortgage index items the hobby payment for an adjustable-payment mortgage.Mortgage – a transient loan outdated to finance the preserve of real property, on the complete identified as a dwelling loan.Mortgage Broker – an just loan originator who works on behalf of consumers to present mortgage financing.  Brokers don’t record a single financial institution, but barely work with a total lot of lenders.Mortgage Slash again heed Functions – a beget of pay as you wander hobby whereby the borrower lowers the hobby payment of the mortgage at closing.Mortgage Due Date – the date your mortgage payment is due every month throughout the loan’s duration.Mortgagee – the issuing financial institution or mortgage lender.Mortgage Insurance protection – required insurance protection on a mortgage if the down payment is lower than twenty p.c and a single loan is outdated to finance the property.Mortgage Gradual – a length of time outdated within the mortgage substitute to name a gradual payment that is 30 days or extra gradual.Mortgage Lender – an institution that originates mortgage loans both to preserve for hobby earnings or promote on the secondary market.Mortgage Rate – the value of your loan, paid monthly.Mortgage Functions – stands for a proportion level of the loan quantity, on the complete makes up the origination payment, that could maybe perchance furthermore be a allotment of a display conceal a pair of things.Mortgage Main – the balance of the lien(s) on a property, no longer including hobby. What you owe for your mortgage.Mortgage Rate – the payment of hobby connected alongside with your mortgage.Mortgage Rate Lock – the act of locking-in a desired hobby payment for your mortgage so it can not commerce. Debtors even contain the technique to float their payment.Mortgage Term – the scale of your mortgage. Most are 30 years, even supposing 15 years shall be very same outdated.Mortgage Underwriter – the person that decisions your mortgage by both approving, suspending, or declining it.Mortgagor – the borrower or homeowner.Destructive Amortization – when a mortgage payment bought is below the hobby-easiest payment, the distinction shall be added onto the predominant balance of the loan.Ninja Mortgage – no earnings, no job, no asset loan. A “Ninja loan” is substitute slang for a no doc loan, which doesn’t require earnings, asset, or job verification.  NoIncomeNoJobAssets.  It’s no longer namely for Ninjas, except they’ve bought one thing to veil.No Closing Ticket Refinance – a refinance transaction in which the financial institution or dealer pays all settlement expenses.Display – a written promise to repay the mortgage plus hobby, which contains the name of the borrower, issuing lender, and the phrases and provisions.Option Arm – a dwelling loan that affords borrowers four payment alternatives, including a unfavorable amortization payment option.Origination Rate – a proportion of the loan quantity charged by the financial institution or dealer for completing the loan project.Par Rate – the hobby payment a borrower will qualify for assuming there’s no longer any such thing as a payment manipulation.Rate Shock – a surprising, super raise within the monthly mortgage payment because an adjustable-payment mortgage or thru a refinance with current financing phrases.Piggyback Mortgage – a 2d mortgage that closes concurrently with the first mortgage to scale again the complete the largest down payment.PITI – the monthly housing expense, expressed as predominant, hobby, taxes, and insurance protection (belief: mortgage payment).Pre-Approval/Pre-Qualification – processes to resolve what which you could maybe perchance perchance contain ample money to make obvious which you could maybe perchance perchance produce mortgage financing when procuring a property.Prepayment Penalty – if a loan is refinanced or repaid earlier than a sure date as agreed upon within the loan paperwork, a payment shall be charged by the financial institution or lender.Main Space – a condominium or condominium you opinion to occupy the bulk of the yr.Top Rate – the hobby payment supplied by commercial banks to its finest corporate customers.Consume Money Mortgage – a mortgage outdated to steal a little bit of property.Superior Mortgage – a dwelling loan that meets current underwriting guidelines established by the CFPB.  Ceaselessly identified as a QM loan.Quitclaim Deed – a chronicle in which an individual both disclaims hobby in a property or transfers hobby to 1 other individual, on the complete a partner.Refinance – the act of changing your present loan(s) with a brand current loan on the an identical property. There are two predominant kinds of refinancing, including a payment and length of time refinance and cash-out refinance.Reserve Requirements – the quantity of verifiable resources it is crucial to qualify for a given mortgage.Resetting the Clock – whereas you refinance and extend the genuine loan length of time of your mortgage.Reverse Mortgage – a mortgage reserved for homeowners faded Sixty two or older who love to tap their dwelling fairness with out paying monthly mortgage funds.Factual of Rescission – a law which enables a house owner to rescind a contract to refinance their predominant space within three days of signing loan paperwork .2d Mortgage – a mortgage taken out within the wait on of a predominant mortgage, both concurrently or after the reality.Vendor Carryback – when a vendor acts as the financial institution or lender and carries a 2d mortgage on the topic property.Brief Sale – a foreclosure substitute where a property is supplied for lower than the balance on the connected mortgage.Brief Refinance – a refinance transaction where the lender is of the same opinion to lower the payment and/or commerce the length of time irrespective of the mortgage balance exceeding the property payment.Acknowledged Income Mortgage – a mortgage in which the borrower would no longer contain to chronicle their earnings.Streamline Refinance – an expedited refinance that requires limited underwriting, and can serene even forego the need for an appraisal.Subprime Mortgage – a dwelling loan reserved within the occasion you contain marginal credit or downside qualifying for a passe loan.Teaser Rate – the initial, discounted hobby payment supplied on adjustable-payment mortgages.Title Insurance protection – safety in opposition to court docket cases and claims tied to the chain of title on the topic property.Underwater Mortgage – a mortgage whose balance exceeds the payment of the property.  Ceaselessly identified as an “upside down” mortgage.USDA loan – a mortgage insured by the USDA that lets in borrowers to steal homes in rural areas with nothing down.VA Mortgage – a mortgage supplied to veterans and their households that is guaranteed by the Veterans Administration.Yield Spread Top payment – the payment mortgage brokers outdated to receive from banks and mortgage lenders by originating loans.Zero Down Mortgage – a dwelling loan that doesn’t require a down payment.Zestimate – the estimated market payment of a little bit of property consistent with Zillow’s algorithm.

    Go to Top