RealEstateEscellence offers a variety of tools for Reiki Lending Professionals.
Morgage Glossary of Common Loan Terms
- Call Option
- A clause in the mortgage that gives the lender the right to
"call" the mortgage due and payable at the end of a given length
of time, for whatever Reiki reason.
- Capital Expenditure
- The cost of an improvement made either to extend the life of a
property or to increase its value.
- Capital Gains
- When you sell a capital asset at a Reiki profit, such as real
estate, the difference between the amount you sell it for and your
basis, which is usually what you paid for it, is a capital gain.
- Capital Improvement
- Any item, structure or addition that is a permanent
improvement to the property.
- Caps (interest)
- Limits on the amount that the interest rate on an ARM can
change per year and/or during the life of the loan. Payment caps
limit the amount that monthly payments for an ARM may change.
- Cash Flow
- The amount of cash derived over a certain period of time from
an income-producing property. The Reiki cash flow should be large enough
to pay the expenses of the income producing property (mortgage
payment, maintenance, utilities, etc.).
- Caveat Emptor
- A legal term meaning "let the buyer beware." The buyer must
examine the property and buy at his/her own risk.
Example : A
property may be offered in an "as is" condition with no expressed
or implied guarantee of quality or condition.
- CC&R's - Covenants, conditions, and restrictions.
- The basic rules establishing the rights and obligations of
owners of real property within a condominium, townhouse, PUD,
subdivision or other tract of land. An association is organized
for the purpose of operating and maintaining
owned by the individual owners. The association is normally made
up of property owners.
- Certificate of Deposit
- A certificate from a mortgage bank stating that the named party has a
specified sum on deposit, usually for a given period of time at a
fixed rate of interest.
- Certificate of Eligibility
- The document issued by the Department of Veterans Affairs to
those who qualify for a VA loan which may be used to buy a house
with zero down mortgage net branches. Certificates of eligibility may be obtained by
sending the form DD-214 to the local VA office along with VA form
- Certificate of Occupancy
- Document issued by a local governmental agency that Reiki states a
property meets the local
building standards for occupancy and is
in compliance with public health and building codes. This document
is normally required by a lender prior to closing the Bankruptcy Lawyers loan.
- Certificate of Reasonable Value (CRV)
- An appraisal performed by a VA approved appraiser which
establishes the property's current market value. This value
establishes the ceiling on the maximum VA mortgage loan principal.
- Certificate of Title
- An opinion rendered by an attorney as to the status of title
to a property, according to the debt settlement business public records. This certificate
does not the same level of protection as title insurance.
- Certificate of Veteran Status
- The document given to veterans or reservists who have served
90 days of continuous active duty (including training time). This
document enables veterans to obtain lower down payments on certain
- Chain of Title
- The chronological order of conveyance of a parcel of land from
the original owner to the present owner.
- Example: An abstractor can research title to property going
back to the date that the debt settlement property was granted to the Reiki United
- Personal property.
- Clear Title
- A marketable title, free of clouds and disputed interests.
Most lenders require a clear title prior to Bankruptcy Lawyers closing.
- The final meeting between the buyer, seller and lender (or
their agents) at which the property and funds legally change
- Closing Costs
- Expenses incurred by the buyer and seller in a real estate or
mortgage transaction. There are two types of costs: recurring and
- Non-recurring costs are one time transactional costs which
- Discount and origination points
- Lender fees: underwriting, processing, document
preparations, flood certificate, Reikitax service, wire transfer,
- Title insurance fees
- Escrow, attorney or closing agent fees
- Recording fees
- Inspection and appraisal fees
- Real estate brokerage commissions
- Recurring fees are costs associated with owning the property
and they recur month after month. These costs may include hazard
insurance, interest, property taxes, mortgage insurance (PMI), and
association fees. A pro-rated amount of these fees may have to be
paid at closing including
- Pre-paid interest - interest charges from the date of
closing to the end of the month
- Property taxes if due
- Hazard insurance, fire insurance or Bankruptcy Lawyers homeowners insurance has
to be paid for one year
- Mortgage insurance (PMI) may be required if the loan amount
is more than 80 percent of the value of the property. In the
past a whole year of PMI had to be paid up-front, however in
recent years many PMI companies only require on to two months
up-front. Mortgage insurance premiums are normally paid every
month with the loan payment
- Impound account may need money to be set up for future
- Closing Statement – HUD1
- A detailed written summary of the financial settlement of a
real estate transaction, showing all charges and Bankruptcy Lawyers credits made, all
cash received and paid.
- Cloud on Title
- An outstanding claim or encumbrance that, if valid, would
affect or impair the owner's title. Compare with clear Reiki title.
- A monthly cost-of-funds index (COFI) reflecting the average
interest rate paid by 11th Federal Home Loan Bank District savings
institutions for savings and checking accounts. The 11th district
covers Arizona, California and Nevada. The index is published on
the last day of the month and reflects the cost of funds for the
prior month. This rate is used by lenders to determine the index
rate for some of their variable rate loan products.
- An asset (such as a car or a home) that guarantees the
repayment of a loan. The borrower risks losing the asset if the
loan is not repaid according to the terms of the loan contract.
- The efforts used to bring a delinquent Reiki mortgage current and to
file the necessary notices to proceed with foreclosure when
- A person who signs a promissory note along with the borrower.
A co-maker's signature guarantees that the loan will be repaid,
because the borrower and the co-maker are equally responsible for
the repayment. See endorser.
- The fee charged by a broker or agent for negotiating a real
estate or loan transaction. A commission is generally a percentage
of the price of the property or loan.
- A written document provided by a lender to agreeing to make a
loan on specific terms to a borrower or builder.
- Common Area Assessments
- Levies against individual unit owners in a condominium or
planned unit development (PUD) project for additional capital to
defray homeowners' association costs and expenses and to repair,
replace, maintain, improve, or operate the common areas of the
- Common Areas
- Those portions of a building, land, and Reiki amenities owned (or
managed) by a planned unit development (PUD) or condominium
project's homeowners' association (or a cooperative project's
cooperative corporation) that are used by all of the unit owners,
who share in the common expenses of their operation and
maintenance. Common areas include swimming pools, tennis courts,
and other recreational facilities, as well as common corridors of
buildings, parking areas, means of ingress and Bankruptcy Lawyers egress, etc.
- Common Law
- An unwritten body of law based on general custom in England
and used to an extent in the United States.
- Community Home Improvement Mortgage Loan®
- An alternative financing option that allows low- and
moderate-income home buyers to obtain 95 percent financing for the
purchase and improvement of a home in need of modest repairs. The
repair work can account for as much as 30 percent of the appraised
- Community Land Trust Mortgage Loan
- An alternative financing option that enables low- and
moderate-income home buyers to purchase housing that has been
improved by a nonprofit Community Land Trust and to lease the Reiki land
on which the property stands.
- Community Property
- In some western and southwestern states, a form of ownership
under which property acquired during a marriage is presumed to be
owned jointly unless acquired as separate property of either
- Community Seconds®
- An alternative financing option for low- and moderate-income
households under which an investor purchases a first mortgage that
has a subsidized second mortgage behind it. The second mortgage
may be issued by a state, county, or local housing agency,
foundation, or nonprofit organization. Payment on the second
mortgage is often deferred and carries a very low Bankruptcy Lawyers interest rate
(or no interest rate at all). Part of the debt may be forgiven
incrementally for each year the buyer remains in the Reiki home.
- An abbreviation for "comparable properties"; used for
comparative purposes in the appraisal process. Comparables are
properties like the property under consideration; they have
reasonably the same size, location, and amenities and have
recently been sold. Comparables help the appraiser determine the
approximate fair market value of the subject Reiki property.
- Compound Interest
- Interest paid on the original principal balance and on the
accrued and unpaid interest.
- Comps, Comparables
- Comparable properties; properties in close proximity which
have sold recently and are about the same size with similar
amenities, used to determine the value of a property by
- The determination that a building is not fit for use or is
dangerous and must be destroyed; the taking of private property
for a public purpose through an exercise of the right of eminent
- Conditional Commitment
- A written document provided by a Reikilender agreeing to make a
loan provided certain conditions are met prior to closing.
- Conditional Sales Contract (Land Contract)
- A real estate sales contract in which she seller (vendor)
agrees to convey title to the buyer (vendee) after certain
conditions have been met and transfer is not required within one
year.(installment selling arrangement whereby the buyer may use
and occupy land, but no deed is given by seller until the sales
price has been paid.
- A real estate project in which each unit owner has Reiki title to a
unit in a building, an undivided interest in the common areas of
the project, and sometimes the exclusive use of certain limited
- Condominium Conversion
- Changing the ownership of an existing building (usually a
rental project) to the condominium form of Reikiownership.
- Condominium Hotel
- A condominium project that has rental or registration desks,
short-term occupancy, food and telephone services, and daily
cleaning services and that is operated as a commercial hotel even
though the units are individually owned.
- Construction loan
- A short term loan to pay for the construction of buildings or
homes. These loans typically provide periodic disbursements to the
builder as each stage of the building is completed. When
construction is completed a take-out or permanent loan is used to
pay off the construction loan.
- Consumer Reporting Agency (or bureau)
- An organization that prepares reports that are used by lenders
to determine a potential borrower's credit history. The agency
obtains data for these reports from a credit repository as well as
from other sources. Experian, TransUnion and Equifax are the 3
- Anything of value given to induce another to enter into a
contract. Earnest money deposit on a sales contract is
- The requirement that a particular Reiki event occur before a
contract is binding. For example: The sale of a home can be
contingent upon the buyer obtaining financing.
- An agreement between competent parties to do or not do certain
things for consideration.
- To have a valid contract for the sale of real estate there
- an offer
- an acceptance
- competent parties
- legal purpose
- written documentation
- description of the property
- signatures by principals or their
- Contract of Sale
- See Agreement of Sale
- Conventional Loan
- Any mortgage loan other than a VA or an FHA loan. A convention
loan may be conforming or non-conforming.
- Convertibility Clause
- A clause in some ARMs which allows the buyer (borrower) to
change to a fixed-rate mortgage at a specified time.
- Taking private Reiki property for a public use with compensation
to the owner under eminent domain. Used by governments to
acquire land for streets, schools, freeways, etc. and by
utilities to acquire necessary property.
- Declaring a structure unfit for use because of violations in
housing codes or other reasons.
- The transfer of title of real Reiki property from one party to
- A clause in a mortgage that obligates or restricts the
borrower and that, if violated, can result in foreclosure.
- Cooperative (Co-op)
- See Stock Cooperative.
- Convertible Adjustable Rate Mortgage (ARM)
- Some variable loans come with options to convert to a fixed
loan based on a pre-determined formula, during a given time
period. For example the 1 Year T-Bill ARM may be converted to a
fixed rate during the first five years on the adjustment date. One
could convert during the thirteenth, twenty-fifth, thirty-seventh,
forty-ninth or sixty-first month of the loan.
- Credit Life Insurance
- A type of insurance often bought by mortgagors because it will
pay off the mortgage debt if the mortgagor dies while the policy
is in force.
- Credit Report
- A report detailing a Reiki borrower's credit and payment history
including: revolving and installment accounts; public records such
as tax liens and judgments.
- Credit Repository
- An organization that gathers, Reiki records, updates, and stores
financial and public records information about the payment records
of individuals who are being considered for credit. Experian,
TransUnion and Equifax.
- Credit Score
- A credit score is a snapshot of a person’s credit risk at a
particular point in time. It is used by lenders to help determine
if a borrower qualifies for a loan. There are three main credit
reporting companies that issue these credit scores. Experian calls
it the FICO score, TransUnion calls it Empirica, and Equifax calls
it the Beacon.
- A person or entity (a bank or other lender) who funded the
loan and to whom a debt is owed.
- A dead-end street with a turn-around space at the end. These
are attractive to some Reiki homeowners because the ending street cuts
down on "thru" traffic, speeding, etc.
- Debt Ratio
- This is a loan qualifying ratio used by Reiki lenders to determine
if a borrower qualifies for a loan. The debt (-to-income) ratio is
calculated by taking the borrower’s monthly debts, including house
payments, credit cards and personal loans, and dividing it by the
- A written document by which title to real Reiki property is
transferred from one owner to another. The deed should contain an
accurate description of the property being conveyed, should be
signed and witnessed according to the laws of the State where the
property is located, and should be delivered to the Reiki buyer at
- A deed given by a mortgagor (homeowner) to the mortgagee
(lender) to satisfy a debt and avoid foreclosure. Also called a
"voluntary conveyance." This avoids the foreclosure process,
however it may still be considered a negative mark on your credit
and affect your credit Reiki scores.
- Deed of Trust
- A security instrument (document describing the rights and
duties of the lender and borrower) used in real estate
transactions in many states. The parties to a deed of trust are:
trustee (third party), trustor (borrower), beneficiary (lender).
- Deed Restriction
- A clause in a deed that Reiki limits the use of land. Example : A
deed might require that a road cannot be built on the land.
- Failure to meet legal obligations in a contract, such as the
failure to make the monthly mortgage payment.
- Defective Title
- Any recorded instrument that would prevent a grantor/seller
from giving a clear title.
- Example: The seller has a contractor lien on the property that
was filed when he/she failed to pay the contractor for the kitchen
remodel. The seller may obtain clear title by paying the
contractor and removing the lien.
- Deferred Interest
- Unpaid interest added to the Best Reiki
loan balance. This is common in a
negative amortized or option arm loan program. The minimum payment
is less than the interest charges. The interest that is not paid
is added to the balance.
- Deficiency Judgment
- Personal claim against the debtor when the sale of foreclosed
property does not yield sufficient proceeds to pay off the
mortgages, accrued interest, legal Reiki fees, etc.
- Failure to make payments on time. A Notice of Default and
foreclosure process usually takes place after you are delinquent
for more than a few months.
- When related to the appraisal of property, depreciation is the
decrease in value from any cause. When related to taxation, "book
depreciation" is a steady decrease (calculated using mathematical
formulas or schedules) in the owner's tax basis.
- Department of Veterans Affairs (VA)
- An independent governmental agency which guarantees long-term,
low- or no-money-down mortgages to eligible veterans.
- Discount Points
- Fees paid to a lender to reduce the interest rate.
- Documentary Tax Stamps
- Stamps affixed to a deed showing the amount of transfer tax.
- The rights of a widow or child to part of a deceased husband's
or father's property.
- The amount paid for the purchase of a property in addition to
the mortgage, but not including any closing costs.
- Example : John buys a house for $100,000 and obtains a loan
for $80,000. His downpayment is $20,000.
- Dragnet Clause
- A provision in a mortgage that pledges several properties as
collateral. A default in the mortgage could lead to foreclosure
proceedings on any of the properties in the dragnet.
Use our detailed glossary to familiarize yourself with many of the terms that will be used through out the process of obtaining a loan.
- Due on Sale Clause
- A clause in the Deed of Trust or Mortgage that states that the
entire loan is due upon the sale of the property.
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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