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 bank or broker advanced you with mountainous words? Attain it’s essential to to sound heaps of savvier when handling your mortgage transaction?This mortgage word checklist is a factual put to hone up on your mortgage vocabulary to ruin sense of what in overall is a extremely advanced direction of.The extra you learn about reputedly advanced mortgage terms, the extra fear you’ll instill on your bank or broker. Outsmart them early on and in addition they’ll reflect twice before seeking to overcharge you.Are trying the ever-rising “mortgage dictionary” below.  Be particular to click on on the hyper-linked terms to salvage a extra detailed definition where acceptable:1031 Alternate – a tax-deferred swap of accurate estate employed to offset and even live far flung from capital positive aspects tax.15-Year Fastened Mortgage – a set-price dwelling mortgage that has half of the long-established term of 30 years.203k Mortgage – an FHA mortgage that permits you to fiscal dwelling improvements and permanent financing in a single mortgage mortgage.Three/1 ARM – An ARM that is fastened for the first three years (36 months) of the mortgage term before turning into yearly adjustable.5/1 ARM – An ARM that doesn’t have its first adjustment till year six, and then adjusts as soon as yearly thereafter.Adjustable-Rate Mortgage (ARM) – a mortgage with a variable ardour price, which adjusts monthly, biannually, or yearly. Option-fingers and hybrid mortgages are also idea to be as adjustable-price mortgages.Alt-A Mortgage – a dwelling mortgage that isn’t top or subprime, but someplace in the center.Amortization – the manner a mortgage is paid off over time in installments, detailing how a lot goes in opposition to ardour, and how a lot is paid in opposition to fundamental.Annual Share Rate (APR) – the verbalize ardour price you pay on your mortgage, which components in costs, capabilities, and other costs related to the mortgage.Assumption – the act of assuming accountability for the fee of a mortgage lien.Balloon Mortgage – a non permanent mortgage with diminutive monthly installments and a colossal lump sum due at the raze of the mortgage term. An example could presumably be a 30 due in 15, which amortizes esteem a 30 year fastened, but is due 15 years earlier.Biweekly Mortgage – a mortgage where 26 half of payments, or Thirteen fat payments, are made yearly.Blanket Mortgage – a single dwelling mortgage used to give financing for a pair of properties, akin to condominium units.Bridge Mortgage – a instant term mortgage taken out against one property to finance the retract of a current property.Raise-Down – the act of securing a lower than par ardour price by paying the bank a lender a top price.Caps – preliminary, periodic, and lifetime fee caps which restrict how a lot and how many times an ardour price can swap on an adjustable-price mortgage.Money-In Refinance – a refinance transaction where borrowers lift money to the closing desk to lower their mortgage stability.Certificate of Reasonable Payment (CRV) – an appraisal issued by the Veterans Administration to set up the worth of a property. The mortgage amount could presumably perhaps now not exceed the CRV on a VA mortgage.Closing – the final step in the mortgage direction of when mortgage paperwork are signed at an escrow or title firm.Closing Costs – the amount of cash that would silent be paid to end your mortgage, including lender costs and 1/Three-party charges, at the side of taxes and switch costs.Combo Mortgage – a first and second mortgage used concurrently to finance a property.Conforming Mortgage – a mortgage that meets Fannie Mae and Freddie Mac guidelines, which also falls below a particular mortgage amount.Constructing Mortgage – a non permanent mortgage given to a builder proper through intervals of the constructing direction of which is due upon completion of the mission.Frail Mortgage – any mortgage mortgage that is now not insured or guaranteed by the federal authorities.Credit Epic – a instrument used by the bank or lender to have a study your credit rating profile and your potential to lift and repay debt.Credit Rating – a Three-digit quantity that is used by lenders to assess your creditworthiness. There are minimum scores for most dwelling mortgage programs.Debt-to-Profits Ratio – the ratio of monthly liabilities and housing charges divided by the monthly low profits of the borrower.Deed-in-Lieu of Foreclosure – a manner of avoiding foreclosures by deeding your contain dwelling 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 matter property. It differs from a mortgage in that the bank can foreclose on the property with out judicial lawsuits.Deferred Curiosity – the amount of ardour added to the fundamental mortgage stability when a borrower will pay lower than the ardour-entirely demonstrate price (survey: choice arm).Delinquency – the failure to ruin a monthly mortgage fee on time, that would at remaining consequence in a gape of default, and later a foreclosures.Carve worth Rate – the ardour price the Federal Reserve affords to member banks and thrifts.Doctor Mortgage – a mortgage designed particularly for a doctor that might perhaps permit financing before employment history is established.Down Payment – an upfront fee made by the house buyer in opposition to the property retract label, continuously starting from five to twenty percent. The relaxation of the sales prices makes up the mortgage mortgage amount.Earnest Money – a deposit paid to the seller by the client as a pledge to total a accurate estate transaction. If the seller accepts the provide, the deposit is held in escrow and utilized to closing costs when the deal is closed.Equal Credit Opportunity Act – a federal legislation that prevents lenders from discriminating candidates in accordance with sprint, religion, national origin, sex, age, marital station or involvement in public support programsEscrow – a third party middleman who holds and allocates funds, including taxes and insurance in a mortgage transaction.Federal Funds Rate – the ardour price banks price one one other for overnight use of excess reserves.Federal Home Mortgage Mortgage Corporation – one of the most ideal financiers of worn mortgages on the secondary market. Neatly-most regularly called Freddie Mac.Federal National Mortgage Corporation – a publicly owned, authorities-backed company that applications mortgages and resells them on the secondary market. In most cases most regularly called Fannie Mae.FHA Mortgage – a program originated proper through The Huge Depressed that enables lower profits borrowers to qualify for mortgages as long as they match particular criteria role forth by the Federal Housing Administration who insures them.First-Time Home Buyer – on occasion outlined as somebody who has now not owned one other property at any time proper through the three years forward of the date of the retract.Fastened-Rate Mortgage – a mortgage with a fixed ardour price that is now not going to alter at any point proper through the lifestyles of the mortgage.Foreclosure – the coolest direction of by which a bank or lender sells a property after a borrower fails to meet the compensation terms of the mortgage.Present Letter – a letter required by the borrower when the usage of gift funds to ruin a mortgage mortgage.Real Religion Estimate – a disclosure which details your mortgage summary and an estimate of the charges you’ll incur upon settlement, now most regularly called the Mortgage Estimate (LE).Graduated Payment Mortgage – a unfavourable amortization mortgage with versatile fee solutions that delicately expand over time till leveling off. Supposed for younger couples who’re unable to ruin the fat mortgage fee, but whose profits will expand over time.Laborious Money Mortgage – a mortgage of remaining resort for borrowers who can’t ruin financing in the long-established market attributable to wretched credit rating.HARP Mortgage – a refinance mortgage equipped to those with unfavourable equity.Hazard Insurance coverage – insurance which protects a property owner from damages introduced on by fire or severe weather.Home Appraisal – a entire advise that determines the worth of your contain dwelling in accordance with a necessity of valuation components.Home Fairness – the worth of a property much less any and all existing liens. If a borrower owns a property worth $500,000 and has liens of $four hundred,000, equity is $100,000.Home Fairness Line of Credit – a line of credit rating that makes use of the worth of a property as collateral.Impound Anecdote – an story established by the issuing bank/lender or mortgage servicer to fetch monthly and automatically pay a borrower’s property taxes and insurance costs when payments are due.Curiosity-Handiest Mortgage – a dwelling mortgage that permits you to pay staunch the ardour half of the mortgage fee each month.Funding Property – a property that you just enact now not draw end, but somewhat hire out to a tenant.Islamic Mortgage – a mortgage that avoids the fee or receipt of ardour, which is illegal below Islamic legislation.Jumbo Mortgage – a mortgage amount above the conforming mortgage limits, which is role each year by Fannie Mae and Freddie Mac. These loans on occasion lift better ardour rates than conforming loans attributable to they can’t be sold to Fannie or Freddie.Lender Credit – a credit rating paid by the lender to the borrower for taking an above-market ardour price.Lender-Paid Mortgage Insurance coverage – the lender will pay on your mortgage insurance in swap for a better ardour price on your mortgage.Lender Overlay – a tenet (or role of guidelines) moreover these required by Fannie Mae, Freddie Mac, or the FHA/VA.Letter of Rationalization – a overall mortgage situation required to particular up or present additional details for any matter that needs additional overview.Lien – a claim against a property by the issuing bank or lender to precise compensation of a debt, on occasion in the ruin or a mortgage.Mortgage Officer – a representative of a bank or broker who originates mortgages on their behalf.Mortgage Origination – the initiation of the house mortgage direction of whereby a borrower submits their records to a bank or lender in an effort to ruin mortgage financing.Mortgage Processor – the particular person that handles your total paperwork related to closing your mortgage.Mortgage-to-Payment – the percentage of the appraised property fee that is borrowed from a bank or lender. A down fee of 20% would fabricate a mortgage-to-fee of eighty%.Margin – a given amount specified by the bank or lender which when added to the accompanying mortgage index units the ardour price for an adjustable-price mortgage.Mortgage – a non permanent mortgage used to finance the retract of accurate property, also most regularly called a dwelling mortgage.Mortgage Broker – an fair mortgage originator who works on behalf of consumers to ruin mortgage financing.  Brokers don’t signify a single bank, but somewhat work with a critical need of lenders.Mortgage Carve worth Aspects – a ruin of prepaid ardour whereby the borrower lowers the ardour price of the mortgage at closing.Mortgage Due Date – the date your mortgage fee is due each month proper through the mortgage’s duration.Mortgagee – the issuing bank or mortgage lender.Mortgage Insurance coverage – required insurance on a mortgage if the down fee is lower than twenty percent and a single mortgage is used to finance the property.Mortgage Gradual – a term utilized in the mortgage alternate to name a unhurried fee that is 30 days or extra previous due.Mortgage Lender – an establishment that originates mortgage loans both to preserve for ardour profits or promote on the secondary market.Mortgage Payment – the worth of your mortgage, paid monthly.Mortgage Aspects – stands for a percentage point of the mortgage amount, on occasion makes up the origination rate, which in overall is a fragment of a indicate a pair of capabilities.Mortgage Predominant – the stability of the lien(s) on a property, now not including ardour. What you owe on your mortgage.Mortgage Rate – the price of ardour related to your mortgage.Mortgage Rate Lock – the act of locking-in a desired ardour price on your mortgage so it cannot swap. Borrowers also have the selection to head with the creep with the circulation their price.Mortgage Duration of time – the length of your mortgage. Most are 30 years, though 15 years is also very overall.Mortgage Underwriter – the particular person that decisions your mortgage by both approving, suspending, or declining it.Mortgagor – the borrower or residence owner.Negative Amortization – when a mortgage fee obtained is below the ardour-entirely fee, the distinction will be added onto the fundamental stability of the mortgage.Ninja Mortgage – no profits, no job, no asset mortgage. A “Ninja mortgage” is alternate slang for a no doc mortgage, which doesn’t require profits, asset, or job verification.  NoIncomeNoJobAssets.  It’s now not particularly for Ninjas, unless they’ve got one thing to camouflage.No Closing Payment Refinance – a refinance transaction by which the bank or broker will pay all settlement costs.Repeat – a written promise to repay the mortgage plus ardour, which contains the name of the borrower, issuing lender, and the terms and provisions.Option Arm – a dwelling mortgage that affords borrowers four fee solutions, including a unfavourable amortization fee choice.Origination Payment – a percentage of the mortgage amount charged by the bank or broker for finishing the mortgage direction of.Par Rate – the ardour price a borrower will qualify for assuming there is no price manipulation.Payment Shock – a unexpected, colossal expand in the monthly mortgage fee attributable to an adjustable-price mortgage or through a refinance with current financing terms.Piggyback Mortgage – a second mortgage that closes simultaneously with the first mortgage to reduce relieve the total obligatory down fee.PITI – the monthly housing expense, expressed as fundamental, ardour, taxes, and insurance (survey: mortgage fee).Pre-Approval/Pre-Qualification – processes to set up what it’s essential to presumably presumably give you the money for to ruin particular it’s essential to presumably presumably ruin mortgage financing when shopping a property.Prepayment Penalty – if a mortgage is refinanced or repaid forward of a particular date as agreed upon in the mortgage paperwork, a rate will be charged by the bank or lender.Most fundamental Role – a residence or condominium you intend to attract end the bulk of the year.Prime Rate – the ardour price equipped by commercial banks to its most fantastic company customers.Interact Money Mortgage – a mortgage used to retract a fragment of property.Licensed Mortgage – a dwelling mortgage that meets current underwriting guidelines established by the CFPB.  In most cases most regularly called a QM mortgage.Quitclaim Deed – a doc by which an particular person both disclaims ardour in a property or transfers ardour to one other person, on occasion a spouse.Refinance – the act of changing your existing mortgage(s) with a current mortgage on the identical property. There are two main sorts of refinancing, including a price and term refinance and cash-out refinance.Reserve Requirements – the amount of verifiable sources it be well-known to qualify for a given mortgage.Resetting the Clock – ought to you refinance and lengthen the long-established mortgage term of your mortgage.Reverse Mortgage – a mortgage reserved for house owners extinct sixty two or older who esteem to tap their dwelling equity with out paying monthly mortgage payments.Real of Rescission – a legislation which permits a residence owner to rescind a contract to refinance their critical remark internal three days of signing mortgage paperwork .2nd Mortgage – a mortgage taken out at the relieve of a first mortgage, both concurrently or after the truth.Seller Carryback – when a seller acts as the bank or lender and carries a second mortgage on the matter property.Rapid Sale – a foreclosures replacement where a property is sold for lower than the stability on the associated mortgage.Rapid Refinance – a refinance transaction where the lender is of the same opinion to lower the price and/or swap the term despite the mortgage stability exceeding the property fee.Said Profits Mortgage – a mortgage by which the borrower would now not must doc their profits.Streamline Refinance – an expedited refinance that requires limited underwriting, and can even forego the need for an appraisal.Subprime Mortgage – a dwelling mortgage reserved in the occasion you have marginal credit rating or relate qualifying for a extinct mortgage.Teaser Rate – the preliminary, discounted ardour price equipped on adjustable-price mortgages.Title Insurance coverage – protection against lawsuits and claims tied to the chain of title on the matter property.Underwater Mortgage – a mortgage whose stability exceeds the worth of the property.  In most cases most regularly called an “upside down” mortgage.USDA mortgage – a mortgage insured by the USDA that enables borrowers to retract properties in rural areas with nothing down.VA Mortgage – a mortgage equipped to veterans and their households that is guaranteed by the Veterans Administration.Yield Unfold Top price – the cost mortgage brokers used to receive from banks and mortgage lenders by originating loans.Zero Down Mortgage – a dwelling mortgage that doesn’t require a down fee.Zestimate – the estimated market fee of a fragment of property in accordance with Zillow’s algorithm.

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