mortgage :: essays research papers

Mortgage Terms                Adjustable-Rate Mortgage (ARM) A mortgage with interest set ups and monthly payments adjusted at unshakable intervals based on changes in either a national or regional index. Also called "variable-rate mortgage." Amortization A giveword payment schedule characterized by equal periodic payments that are calculated to meet current interest payments and retire the principal at the end of a fixed period (at maturity date if the loan is fully amortized). Annual Percentage Rate (APR) The total yearly cost of a mortgage stated as a percentage of the loan amount includes such items as the base interest rate, private mortgage insurance, and loan origination fee (points). Appraisal A written analysis of the estimated apprise of a property prepared by a qualified appraiser. ARM Margin The spread (or difference) between the index rate and the mortgage interest rate for an adjustable-rate mortg age. Balloon Mortgage A mortgage in which the debt service (the regular payments of principal and interest) will not result in the complete payment of the loan by the end of the mortgage term. Cap A provision of an ARM limiting how much the interest rate or mortgage payments may cast up or decrease. Cash Reserve A requirement of some lenders that buyers have sufficient cash remaining after closing to make the first devil monthly mortgage payments. Closing The completion of a real estate transaction that transfers rights of ownership to the buyer. Also called "settlement." Condominium A type of property ownership within a multiunit complex in which the homeowner owns a unit and a proportionate interest in certain common areas, such as the grounds of the complex. Contingency A condition that must be met before a contract is legally binding. Conventional Mortgage A loan that is not insured or guaranteed by the federal government. Credit Report A report from an independent ag ency that verifies a loan applicants information on previous(prenominal) debts and liabilities. Deed The legal document conveying title to a property. Down Payment The part of the purchase price which the buyer pays in cash and does not finance with a mortgage. Earnest Money A deposit made by the potential home buyer to show that he or she is heavy about buying the house. Easement A right of way giving persons other than the owner access to or over a property. Equity A homeowners financial interest in a property. Equity is the difference between the fair market value of a property and the amount still owed on the mortgage.