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Broker Number MB2563
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Common Terminology: Adjustable rate mortgage (ARM) - A loan that allows the interest rate to change periodically dependent upon the specifications of the index. Amortization - The repayment of debt with regular monthly installments Annual percentage rate - The cost of the loan in percentage terms taking into account various loan charges of which interest is only one such charge Appraisal - A market evaluation of worth based on comparable properties with similar characteristics. Appreciation - The increase in market value based on market conditions. Asset - An Item to which a dollar value can be placed. Balloon payment - The amount of the loan that is due after a specific time frame. Collection - A delinquent account that has been turned over to an outside agency to try to obtain payment. Deed - The legal document used to determine ownership. Debt to Income - The ratio of total liabilities versus total income expressed as a percentage. Equity - The monetary difference between the value of a property versus what is owed. Funding - The time when money proceeds are dispersed. Good Faith Estimate - A required document by law that lists all fees associated with the loan. Judgment - A court order debt held against you by an individual or company. Lien - A debt held against a property. Liability - A debt that is owed. Loan to Value (LTV) - The loan amount in relation to the value of the property expressed as a percent. Mortgage - A legal document that secures real property as collateral for repayment of debt. Non Owner Occupied (NOO) - A property that is owned by someone not living there. Point - A dollar amount that is equal to one percent of the loan amount. For example, 2 points of a $100,000 loan = $2000. Seasoning - A length of time. Survey - A drawing showing the legal boundaries, easements, encroachments, and right-of-ways of a property. Title - A legal document expressing the ownership rights into a property. Title Insurance - Insurance to protect a buyer (owner's policy) or the lender (lender's policy) from disputes over ownership. Title Search - A check of legal records to discover ownership, liens, and other claims on a property. Underwriting - The process of reviewing required documentation to approve a loan. |