Twitter
Stumble Upon
Digg
Delicious
Mortgage Tools Glossary
Glossary of terms used on this site
There are 84 entries in this glossary.All
| Term | Definition |
|---|---|
| Pre-payment |
Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized. |
| Pre-payment Penalty |
A fee that may be charged to a borrower who pays off a loan before it is due. |
| Pre-qualification |
This usually refers to the loan officer's written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower. |
| Principal Balance |
The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. |
| Private Mortgage Insurance (MI) |
Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. |
| Purchase Agreement |
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. |
| Rate Lock |
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost. |
| Real Estate Agent |
A person licensed to negotiate and transact the sale of real estate. |
| Realtor® |
A real estate agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors. |
| Recorder |
The public official who keeps records of transactions that affect real property in the area. Sometimes known as a "Registrar of Deeds" or "County Clerk." |
| Remaining Balance |
The amount of principal that has not yet been repaid. |
| Remaining Term |
The original amortization term minus the number of payments that have been applied. |
| Second Mortgage |
A mortgage that has a lien position subordinate to the first mortgage. |
| Security |
The property that will be pledged as collateral for a loan. |
| Survey |
A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features. |
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.
