Glossary of terms used on this site
There are 105 entries in this glossary.All
| Term | Definition |
|---|---|
| Assumable Mortgage |
A mortgage that allows a buyer to replace the seller by taking over the obligation of the loan. |
| Balloon Mortgage |
A loan that has a large final payment. |
| Biweekly Mortgage Payment |
A mortgage that requires principal and interest payments at two-week intervals. The payment is exactly half of what a monthly payment would be. Over a year’s time, the 26 payments are equivalent to 13 monthly payments on a comparable monthly payment mortgage. As a result, the loan will amortize much faster than loans with monthly payments. |
| Bridge Loan |
A temporary loan to buy time for the borrower until money from another source (a more permanent loan or sale of property) is obtained. |
| Buydown |
A payment of a lump sum of money to a lender to reduce the interest rate of the loan. The reduced rate may apply for all or a portion of the loan term. |
| Buyer Assistance |
DPAs (Down Payment Assistance) or silent seconds are first-time buyer programs that may enable the buyer to afford a higher priced house. Income restrictions and sometimes area restrictions are applicable. The money is available sporadically and it is usually administered on a city level. |
| Cap |
The maximum amount an interest rate or monthly payment can change, either at established intervals and/or over the life of the mortgage. |
| Certificate of Eligibility |
A document issued by the Department of Veterans Affairs showing that a specific veteran may apply for a VA-guaranteed mortgage |
| Certificate of Reasonable Value |
The name for the appraisal used for a VA-guaranteed mortgage. |
| Closing |
The day when buyers and sellers sign the documents and exchange money for the title to the home. The agreements made in the sales agreement are finalized at closing. |