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Mortgage Tools Glossary
Glossary of terms used on this site
There are 84 entries in this glossary.All
| Term | Definition |
|---|---|
| Fannie Mae (FNMA) |
The Federal National Mortgage Association, a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. |
| FHA Mortgage |
A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan. |
| Firm Commitment |
A lender's agreement to make a loan to a specific borrower on a specific property. |
| First Mortgage |
The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions. |
| Fixed-Rate Mortgage |
A mortgage in which the interest rate does not change during the entire term of the loan. |
| Flood Insurance |
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. |
| Foreclosure |
The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction, with the proceeds of the sale being applied to the mortgage debt. |
| Home Inspection |
A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser. |
| Homeowner's Insurance |
An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents. |
| Jumbo Loan |
A loan that exceeds Fannie Mae's and Freddie Mac's loan limits, currently at $227,150. A jumbo loan is also called a nonconforming loan. Freddie Mac and Fannie Mae loans are referred to as conforming loans. |
| Lender |
A term that can refer to the institution making the loan or to the individual representing the firm. For example, loan officers are often referred to as "lenders." |
| Lien |
A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien. |
| Loan Servicing |
After you obtain a loan, the company you make the payments to is "servicing" your loan. They process payments, send statements, manage the escrow/impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made on the property, handle pay-offs and assumptions, and provide a variety of other services. |
| Lock-in |
An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost. |
| Lock-in Period |
The time period during which the lender has guaranteed an interest rate to a borrower. |
At University Mortgage our Higher Degree of ServiceSM provides you with a complete education in the home loan process that we call a Mortgage Cum LaudeSM. Learn More.
