The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.

For a more complete discussion of mortgage banker, see "Types of Lenders." A mortgage banker is generally assumed to originate and fund their own loans, which are then sold on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginnie Mae. However, firms rather loosely apply this term to themselves, whether they are true mortgage bankers or simply mortgage brokers or correspondents.

The lender in a mortgage agreement.

A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

A property purchase transaction in which the property seller provides all or part of the financing.

For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease during any one-adjustment period, regardless of how high or low the index might be.

A point is 1 percent of the amount of the mortgage.

A term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount, and making assumptions about what the interest rate will actually be at the time the loan is made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender.