Glossary of terms used on this site
There are 105 entries in this glossary.All
| Term | Definition |
|---|---|
| Mortgage Backed Securities |
MBS are asset-backed securities whose cash flows are backed by the principal and interest payments of a set of mortgage loans. |
| Mortgage Insurance Premium (MIP) |
An insurance premium homebuyers pay on FHA loans to protect the lender against default. |
| Mortgage Note |
This is a contract that legally pledges the mortgaged property to the lender as collateral for the mortgage loan. The note goes hand in hand with the loan contract and is executed at the same time. The note describes the property, acknowledges the borrower’s obligation to repay the loan and details conditions under which the lender can foreclose the mortgage loan. |
| Mortgagee |
The lender that receives a mortgage in exchange for making a loan. |
| Mortgagor |
The borrower that gives a mortgage to a lender to secure repayment of a loan. |
| Negative Amortization |
This is an increase in the outstanding balance of a loan resulting from the deficiency of periodic debt service payments to cover required interest charged on a loan. |
| Non-Conforming Loan |
a loan for sale to the secondary market that does not fall within the guidelines of Fannie Mae or Freddie Mac. |
| Origination Fee |
See LOAN ORIGINATION FEE. |
| PITI |
The components of a monthly mortgage payment including principal, interest, taxes, and insurance. It is considered your total monthly housing expense, but does not include homeowner’s association dues. |
| Points |
See DISCOUNT POINTS. |