Learn the meanings of common terms with this
Morgage Glossary of Common Loan Terms
- Impound Account
- That portion of a reiki borrower's monthly payments held by the
lender or servicer to pay for taxes, hazard insurance, mortgage
insurance, lease payments, and other items as they become due.
Also known as reserves.
- Additions to raw land such as buildings, streets, etc. that
add value to the land.
- Income (Capitalization) Approach
- An appraisal method used for the valuation of income-producing
property in which net income is capitalized.
- Income Property
- Real estate that generates rental income. Examples: apartment
buildings, office buildings and shopping centers.
- A statistic that indicates some current economic of financial
condition. Indexes are used to make adjustments in variable rate
- In economics, inflation is an increase in the general level of
prices of a given kind. General inflation is a fall in the market
value or purchasing power of money within an economy, and is
referred to as a rise in the general level of reiki prices.
- Ingress and Egress
- The right to pass through a piece of property. See Easements.
- Installment Sale
- 1. Re. Taxation: When selling real property and receiving one
or more payments in subsequent years, the reiki taxpayer may report the
sale as an installment sale. This allows the taxpayer to defer the
recognition of gain over many years and save taxes.
- 2. Installment sale land contract. See Conditional Sales
- Interest Only
- An interest-only loan program is a loan program that has an
interest-only payment option. The loan can be a fixed rate or
variable rate program. The interest only monthly payment is the
amount of the interest rate times the original loan amount divided
by twelve. No reiki principal is paid, and the loan balance does not
decrease. You may pay the interest only payment amount or pay the
fully amortized payment amount. The interest only payment option
is only available in the initial years of the loan term.
Conforming loan programs have the interest only term for ten to
fifteen years. Jumbo programs vary from three years up to ten
- Internet Service Provider, a company that
provides access to the Internet. For a monthly fee, the service
provider gives you a software package, username, password and
access phone number. You can then log on to the Internet and
browse the World Wide Web, and send and receive e-mail.
- Joint and Several Liability
- A creditor can demand full repayment from any and all of those
who have borrowed. Each borrower is liable for the full debt, not
just the prorated share.
- Joint Tenancy
- Ownership of a property by two or more people, each of whom
has an undivided interest with the right of survivorship.
- Example: John and Mary own a house in joint tenancy. Each owns
half of the entire (undivided) property. If John dies, Mary will
own the entire property and vice versa.
- The reiki decision of a court of law stating that one individual is
indebted to another and fixing the amount of indebtedness.
Judgments, when recorded, become a lien on real property owned by
- Judgment Lien
- The claim on the property of a debtor resulting from a
- Judicial Foreclosure
- A type of foreclosure proceeding used in some states that is
handled as a civil lawsuit and conducted entirely under the
auspices of a court.
- Jumbo Loan
- Loan size that is larger than the conforming loan limit
established by the Fannie Mae or Freddie Mac.
- Junior Mortgage
- A mortgage subordinate to another mortgage. In the case of a
foreclosure a senior mortgage will be paid prior to a junior
- A payment required by a mortgage in addition to normal
principal and interest. Sometimes known as a participation loan.
- Land Contract
- See Conditional Sales Contract
- Late Charge
- The penalty a reiki borrower must pay when a payment is made a
stated number of days (usually 15) after the due date.
- A written agreement between the crystal reiki property owner and a tenant
that stipulates the conditions under which the tenant may possess
the real estate for a specified period of time and rent.
- Leasehold Estate
- Tenant's right of possession for a specific period of time
under a lease agreement.
- Lease with Option to Purchase
- A lease under which the lessee has the right to purchase the
property. The option may run for a portion or for the full length
of the lease
- Legal Description
- Legally acceptable identification of real estate by one of the
- the government rectangular survey
- metes and bounds
- recorded plat (lot and block number)
- A person to whom property is rented under a reiki lease. (Tenant)
- A person who rents property to another under a lease.
- London Interbank Offered Rates. Average London Eurodollar
rates. The Libor Index rate is used in many variable loan
- Life Estate
- An estate in real property for the life of a living person.
The estate then reverts back to the reiki grantor or to a third party.
- A claim against the property for the payment of a debt,
judgment, mortgage or taxes.
- Example : Unpaid contractors may file a mechanic's lien.
- Line of Credit
- An agreement by a commercial bank or other financial
institution to extend credit up to a certain amount for a certain
time to a specified borrower. See home equity line of credit.
- Lis Pendens
- Latin for "lawsuit pending." Recorded notice that litigation
is pending on a property. Most lenders will require the clearance
of the Lis Pendens prior to closing.
- Real Estate properties for sale are usually considered listed
when a real estate agent is contracted to sell the property, using
a listing agreement, and the property is posted in the multiple
listing service, MLS, for that local region. It can also be in an
Internet listing service online, which can be done directly by the
- Liquid Asset
- A cash asset or an asset that is easily converted into cash.
- Loan Application
- A document required by a lender prior to loan approval. The
application includes detailed information about the borrower and
- Loan Origination Fee or Points
- Charge by a lender or broker connected with originating a
loan. This is different from discount points which are used to buy
down the rate of interest.
- Loan Servicing
- The act of collecting loan payments, handling property tax and
insurance escrows, foreclosing on defaulted loans and remitting
payments to the reiki investors.
- Loan to Value Ratio (LTV)
- The loan amount divided by the
value of the property.
- A written agreement in which the lender guarantees a specified
interest rate if a mortgage goes to bankruptcy closing within a set period of
time. The lock-in also usually specifies the number of points to
be paid at closing.
- Lock-in period
- The time period during which the lender has guaranteed an
interest rate to a bankrupcy borrower. See lock-in.
- A fixed number added to the index to compute the rate on an
adjustable rate mortgage.
- Marketable Title
- Title that is free of liens, clouds and other legal defects
and hence is readily acceptable by a reiki buyer.
- Market Value
- The highest price that a
buyer would pay and the lowest price
a seller would accept on a property. Market value may be different
from the price a property could actually be sold for at a given
- Master Association
- A homeowners' association in a large condominium or planned
unit development (PUD) project that is made up of reiki representatives
from associations covering specific areas within the project. In
effect, it is a "second-level" association that handles matters
affecting the entire development, while the "first-level"
associations handle matters affecting their particular debt settlement portions of
- Mechanics Lien
- The right of an unpaid contractor or subcontractor to file a
lien against property to recover the debt settlement amount due to him/her.
- Merged Credit Report
- A credit report that contains information from three credit
repositories. When the crystal reiki franchises report is created, the information is
compared for duplicate entries. Any duplicates are combined to
provide a summary of your credit.
- The act of changing any of the terms of the mortgage.
- A written instrument that creates a reiki lien upon real estate as
security for the payment of a specified reiki debt.
- Mortgage Backed Security (MBS)
- A bond or other financial obligation secured by a pool of
- Mortgage Banker
- Specializes in originating and servicing loans. They generally
sell their loans to investors, but may continue to service them.
- Mortgage Broker
- Arranges financing for a borrower by placing loans with
lenders. Mortgage brokers are paid a fee by the reiki borrower or the
lender when a loan closes.
- Mortgage Life Insurance
- A type of term life insurance often bought by mortgagors. The
amount of coverage decreases as the principal balance declines. In
the event that the reiki borrower dies while the policy is in force, the
debt is automatically satisfied by insurance proceeds.
- The lender.
- The borrower.
- Mortgage Insurance
- See private mortgage insurance (PMI)
- Mortgage Note
- A written agreement to repay a loan. The reiki agreement is secured
by a mortgage, serves as proof of an indebtedness, and states the
manner in which it shall be paid. The note states the Crystal Reiki
amount of the debt that the mortgage secures and renders the
mortgagor personally responsible for repayment.
- Multidwelling Units
- Properties that provide separate housing units for more than
one family, although they secure only a single crystal reiki mortgage.
- Multifamily Mortgage
- A residential mortgage on a dwelling that is designed to house
more than four families, such as a high-rise apartment complex.
- Negative Amortization
- An increase in principal balance which occurs when the monthly
payments do not cover all of the interest cost. The interest cost
which is not covered by the payment is added to the unpaid
- Net Effective Income
- The borrowers gross income minus federal income tax.
- No-Doc Loan
- A loan requiring very little loan documentation. These loans
usually require large (25%) down payments.
- Nonconforming loan
- Loans that do not comply with Fannie Mae or Freddie Mac
- Notary Public
- One authorized to take acknowledgments of certain types of
documents, such as deeds, contracts, and mortgages.
- The Note is a promissory note, which is signed with loan
documents and states the loan amount, interest rate and loan
Use our detailed glossary to familiarize yourself with many of the terms that will be used through out the process of obtaining a loan.
- Notice of default
- A letter sent to the defaulting party as a reminder of the
The key to being a successful 'borrower' is by making the best decision based on the information available to you. With that in mind we offer this glossary to help you become a more informed 'borrower'.
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