Glossary of terms used on this site
There are 105 entries in this glossary.All
| Term | Definition |
|---|---|
| Interest-Only Mortgage Loan |
A loan requiring the borrower to make monthly payments covering only the interest on the loan until loan maturity, when the full loan balance is due. |
| Jumbo Loan |
A mortgage loan that is above the limits of Fannie Mae and Freddie Mac, a non-conforming loan. |
| Loan Commitment |
See COMMITMENT. |
| Loan Modification |
A permanent change in one or more of the terms of a mortgage loan, allows the loan to be reinstated, and results in a payment the borrower can afford. Changes may include lowering the interest rate, forgiving delinquent interest, or any other change to help the borrower cure the default. |
| Loan Origination Fee |
A fee, usually expressed in points, paid to the retail lender for services. |
| Loan-to-Value Ratio (LTV) |
The ratio of the amount of money you borrow compared to the value of the property. For example, if you put 5% down you will have a loan that is 95% of the value of the property or an LTV of 95% (loan amount / property value=LTV). |
| Locked-in-Rate |
The interest rate on a mortgage loan that the lender has agreed to, if the loan closes within a specified time. |
| Margin |
A constant amount added to the value of the index for the purpose of adjusting the interest rate on an adjustable rate mortgage. |
| Market Value |
The value of a business, property, etc. in terms of what it can be sold for on the open market; current value. |
| Mello Roos |
A special assessment tax that is used to build an infrastructure in newer areas or improve public facilities in older areas. The tax may be phased in over time, paid separate from your regular tax bill, or be included in your regular property tax bill. This tax may not be applicable in your area. |