|Abstract of Title
||A condensed history or summary of all
transactions affecting a particular tract of land.
|Adjustable Rate Mortgages
||Mortgages with an interest rate that
may change up or down depending on an indicator. These are usually
based something like the current Treasury bill rate.
||A sworn statement in writing.
|All-Inclusive Title insurance
||This means that most title insurance
charges are included in one price.
||To reduce a debt by means of regular
periodic payments which include amounts applicable to both principal
||Annual percentage rate. On some mortgages
the APR is higher than your actual mortgage rate.
||A mortgage that allows a new owner to
take over payments. The original borrower remains liable on
the mortgage note.
||A written document by which the ownership
of land is transferred from one person to another.
|Deed of Trust
||Instrument used to secure a loan on
real estate. Like a mortgage, generally used in the South. The
major difference is in how foreclosures are handled. Foreclosures
are much faster with a Deed of Trust than with a Mortgage.
|Deposit or Earnest Money
||Advance payment of part of the purchase
price to bind a contract for property.
||A provision in a mortgage or deed of
trust which requires the loan to be paid in full if a property
is sold or transferred.
||The interest or value which an owner
has in real estate over and above the debts against it.
- A procedure whereby a disinterested third party handles
legal documents and funds on behalf of a seller and buyer.
- Money that is kept by the mortgage company to ensure
that taxes can be paid in full when due. This is paid up
front on settlement sheet lines 1001 - 1006 and is added
to the mortgage payment monthly over the principal and interest
||The Federal National Mortgage Association,
a federally sponsored private corporation which provides a secondary
market for housing mortgages.
|Fixed Rate Mortgages
||Mortgages with a fixed interest rate.
You payment for principal and interest will not change for the
life of the loan. Your monthly payment may change if taxes or
insurance rates change.
||The Federal Housing Administration.
An agency of the federal government which insures private loans
for financing of new and existing housing and for home repairs
under government approved programs.
|FHLMC (Freddie Mac)
||Federal Home Loan Mortgage Corporation.
An affiliate of the Federal Home Loan Bank, which creates a
secondary market in conventional residential loan and FHA and
VA loans by purchasing mortgages from members of the Federal
Reserve System and the Federal Home Loan Bank System.
||Legal process by which a mortgagor of
real property is deprived of his interest in that property due
to failure to comply with terms and conditions of the mortgage.
||A person who acquires an interest in
land by deed, grant or other written instrument.
||A person who, by a written instrument,
transfers to another interest in land.
||The homeowner's insurance policy.
||One who might inherit or succeed to
an interest in lands under the rules of law applicable where
an individual dies without leaving a will.
||Directed at specific persons rather
than against property or generally for all people.
||Pertaining to property or people in
|Interest only payments
||A mortgage where only the interest is
paid on a monthly basis. This means that the buyer gets no equity.
This is only used on some purchase money mortgages where the
buyer is responsible for paying the seller the entire amount
of the second mortgage at some time in the future.
||A written document.
|Loan origination fees
||Money required by the lender to be paid
to start the work of approving a mortgage.
||A decree of a court.
||A hold, a claim or charge allowed a
creditor upon the lands of a debtor.
||An instrument used to encumber land
as security for a debt. This document gives the mortgage company
"in rem" jurisdiction over the mortgagor.
||A designation for the mortgage lender
||A designation for the mortgage borrower
||Mortgage insurance protection
||A written promise to pay a certain
amount of money, at a certain time, or in a certain number
of installments. It usually provides for payment of interest
and its payment is at times secured by a mortgage.
- The mortgage note document gives the mortgage company
"in rem" jurisdiction over the mortgagor.
- The promissory note document gives the mortgage company
"in personam" jurisdiction over the mortgagor.
||Paid outside of closing. Sometimes the
lender requests this money before settlement. If you pay any
charges before settlement they should be written on the settlement
sheet. They are written on the proper line outside of your column.
They should also be marked P.O.C.
||A percentage point. Equal to one percent
of the loan amount.
|Power of Attorney
||An instrument authorizing another to
act on one's behalf as his agent or attorney.
||Private mortgage insurance.
||Purchase money mortgage. A mortgage
given by the seller simultaneously with the purchase of real
estate to secure the unpaid balance of the purchase price.
||To allocate between seller and buyer
their proportionate share of an obligation paid or due.
||A promise to pay. The promissory note
document gives the mortgage company "in personam"
jurisdiction over the mortgagor.
||Land and that which is affixed to it.
||A reduced rate of title insurance premium
applicable in cases where the owner of the land has been previously
insured in an owner's policy by the insurer within a certain
||A mortgage, the lien of which is subordinate
to that of another mortgage.
||The process of measuring land to determine
its size, location and physical description and the resulting
drawing or map.
|Tax Service Fee
||A fee paid to the mortgage company to
verify that they actually pay the real estate taxes.
||The evidence or right a person has to
the ownership and possession of land.
||Insurance against loss or damage resulting
in defects or failure of title to a particular parcel of real
|Title Insurance Binder or Commitment
||A report issued by a title insurance
company binding or committing the title insurance company to
issue the form of policy designated in the commitment or binder
upon compliance with and satisfaction of requirements set forth
in the commitment or binder.
||An examination of public records and
court decisions to disclose the current facts regarding ownership
of real estate.
||Money paid to the county and or state
when property is sold.
||The Veterans Administration. They insure
||A written document properly witnessed,
providing for the distribution of property owned by the deceased.