actual interest rate: Also known as the 'note rate,' this is t...
adjustable interval: This is the amount of time between adjus...
alternative documentation: Typically lenders will require full inco...
amortization: Calculating the repayment of a loan over...
application: The mortgage loan application is an init...
application fee: A lender will charge an application fee ...
appraisal: A qualified appraiser will prepare this ...
appraisal fee: An appraiser will charge an appraisal fe...
APR (annual percentage rate): This includes interest plus any addition...
ARM (adjustable rate mortgage) loan: The interest rate on an ARM is adjusted ...
assignment: The assignor will transfer the ownership...
assignment recording fee: Often, a lender will transfer a loan to ...
assumption: In this scenario, the buyer of a propert...
balloon mortgage: This loan has fixed monthly payments for...
bankruptcy: A court order that provides debt relief ...
blanket mortgage: A mortgage that covers multiple properti...
borrower: The recipient of a mortgage loan, who pl...
broker: Someone who serves as the mediator betwe...
buydown mortgage: A below-market mortgage loan. This low r...
buyer's market: Conditions where there are more sellers ...
call option: A provision on a loan that requires the ...
caps (interest): Limits on the amount an interest rate on...
caps (payment): Limits on the amount a monthly payment o...
cash-out: Additional cash remaining after a borrow...
ceiling: The maximum interest rate allowed on an ...
certificate of eligibility: A veteran benefit, this proves eligibili...
certificate of title: Does not offer the protection that title...
certificate of veteran status: The Veterans Administration will submit ...
chain of title: The chain of events used to convey owner...
closing: Also known as settlement, the closing co...
closing costs: Also known as settlement costs, these ar...
COFI (cost of funds index): The COFI is a weighted average of the in...
commission: Money paid to and earned by a mortgage b...
commitment: A promise to lend money to the borrower ...
comparables: Properties that an appraised property is...
comparative market analysis: Similar to an appraisal, this comparativ...
compound interest: Calculated not only on the principal, bu...
condominium: A housing project in which the property ...
conforming loan: Meets the eligibility requirements for p...
contingency: A requirement that must be met before a ...
contract of sale: The legally binding agreement between bu...
conventional loan: These loans are not made under any gover...
conversion clause: An optional provision in adjustable rate...
convertible ARM: This is an ARM (Adjustable Rate Mortgage...
conveyance: The document used to transfer a deed or ...
credit bureau: Creditors provide each of three credit b...
credit report: A report, provided by a credit bureau th...
credit score: A number that is calculated by weighing ...
A-C |
D-G |
H-N |
O-S |
T-Z
Refer to this glossary of mortgage terms defined at QChest.com anytime you have a question about your loan-in-process. Be sure to bookmark this page to help sift through the legal mumbo jumbo used in originating your loans.
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