Mortgage
Credit Report
A report of an individual's credit worthiness reported by
credit bureaus.
Income
Term used to define the amount of money an individual
makes either weekly, monthly, or yearly.
Allowance
Allowance is the amount of money that might be allowed to
purchase a particular item in the construction budget for a
house.
Principal
The amount of money of a loan payment applied to the
reduction of the principal amount of a loan.
Pre Qualify
Term used by banks to determine what size of a loan an
individual might be able to afford. The individuals income,
debt, and credit worthiness are used in order to determine
the mortgage amount.
Loan application
A document that supplies information needed for a
lending institution to qualify an individual for a loan. This
will provide personal and financial information.
Credit Report
A report of an individual's credit worthiness reported by
credit bureaus.
Income
Term used to define the amount of money an individual
makes either weekly, monthly, or yearly.
Allowance
Allowance is the amount of money that might be allowed to
purchase a particular item in the construction budget for a
house.
Principal
The amount of money of a loan payment applied to the
reduction of the principal amount of a loan.
Pre Qualify
Term used by banks to determine what size of a loan an
individual might be able to afford. The individuals income,
debt, and credit worthiness are used in order to determine
the mortgage amount.
Loan application
A document that supplies information needed for a
lending institution to qualify an individual for a loan. This
will provide personal and financial information.
Assumption
Assumption allows a buyer to assume the responsibility for an
existing loan instead of getting a new one.
Amortization
A schedule which provides for the gradual extinguishment of a
mortgage usually by the contribution to a sinking fund at the time
of each periodic interest payment.
Interest Rate
A charge for borrowed money generally a percentage of the
original amount of the loan.
Draw
Pre-payment refers to the early payment in full of a loan or
mortgage. Some loans contain penalty clauses which penalize for
early payment of the loan.
Binder
Binder is an amount of money used to secure an insurance
policy until the permanent documents can be completed.
Assumption allows a buyer to assume the responsibility for an
existing loan instead of getting a new one.
Amortization
A schedule which provides for the gradual extinguishment of a
mortgage usually by the contribution to a sinking fund at the time
of each periodic interest payment.
Interest Rate
A charge for borrowed money generally a percentage of the
original amount of the loan.
Draw
Pre-payment refers to the early payment in full of a loan or
mortgage. Some loans contain penalty clauses which penalize for
early payment of the loan.
Binder
Binder is an amount of money used to secure an insurance
policy until the permanent documents can be completed.
| Financial-2 |
Construction Jargon
Balloon Mortgage
A loan which is repaid by a series of small, periodic
payments until a given date. At this time either the
balance comes due in a single large payment or the
amount of the payments rises significantly.
Asking Price
The price at which the Vendor advertises a property.
When used in the advertisement, may suggest flexibility
on the part of the Vendor regarding the price.
Debt
The total of all financial obligations of a person or
corporation
Credit Rating
Based on an analysis of a person's credit history, an
evaluation of that person's ability to manage a new debt
or debts overall
Creditor
Any person to whom money is owed. May be secured (the
debt has been registered against the property of the
debtor) or unsecured.
Debt Ratio
Also known as Debt-to-Income ratio. A comparison of the
total monthly payments of all of the borrower's debts
(including the mortgage) with the gross monthly income of
the borrower, used to assess borrower's ability to pay
mortgage.
A loan which is repaid by a series of small, periodic
payments until a given date. At this time either the
balance comes due in a single large payment or the
amount of the payments rises significantly.
Asking Price
The price at which the Vendor advertises a property.
When used in the advertisement, may suggest flexibility
on the part of the Vendor regarding the price.
Debt
The total of all financial obligations of a person or
corporation
Credit Rating
Based on an analysis of a person's credit history, an
evaluation of that person's ability to manage a new debt
or debts overall
Creditor
Any person to whom money is owed. May be secured (the
debt has been registered against the property of the
debtor) or unsecured.
Debt Ratio
Also known as Debt-to-Income ratio. A comparison of the
total monthly payments of all of the borrower's debts
(including the mortgage) with the gross monthly income of
the borrower, used to assess borrower's ability to pay
mortgage.
A legal instrument in which a borrower conveys property to a
lender under a mortgage to save the expense of foreclosure.
See also quit-claim deed.
Deet of Trust
A legal instrument conveying legal title to a property to a trustee,
may contain statements as to powers of trustee, duties of trustee
etc
Disbursement
An expenditure of money.
Credit life
A form of insurance which is designed specifically to pay out the
debts of the insured person in case of their death
As Is Agreement
A statement in the Agreement of Purchase and Sale that
confirms that the Purchaser shall accept the property and all
chattels included in the Purchase in the condition in which they
are found at the time the Agreement is signed.
Assume Mortgage
The agreement of a purchaser to take on personal liability for a
mortgage already registered on title to the property and to make
payments under the mortgage. Purchaser takes the place of the
vendor in the contract with the lender.
Unsecured Loan
A loan with no asset pledged as collateral or security for it
lender under a mortgage to save the expense of foreclosure.
See also quit-claim deed.
Deet of Trust
A legal instrument conveying legal title to a property to a trustee,
may contain statements as to powers of trustee, duties of trustee
etc
Disbursement
An expenditure of money.
Credit life
A form of insurance which is designed specifically to pay out the
debts of the insured person in case of their death
As Is Agreement
A statement in the Agreement of Purchase and Sale that
confirms that the Purchaser shall accept the property and all
chattels included in the Purchase in the condition in which they
are found at the time the Agreement is signed.
Assume Mortgage
The agreement of a purchaser to take on personal liability for a
mortgage already registered on title to the property and to make
payments under the mortgage. Purchaser takes the place of the
vendor in the contract with the lender.
Unsecured Loan
A loan with no asset pledged as collateral or security for it
Also known as a Variable Rate Mortgage, a loan secured
against land which has an interest rate that changes
according to some outside index -- such as the federal
prime rate or the interest rate paid on government bonds
-- over the term of the mortgage. The change in interest
rate will result in a change in the periodic payments due
under the mortgage.
Acceleration Clause
A clause in a mortgage or loan. If the borrower fails to live
up to her obligations under the mortgage, the lender has
the legal right to demand that the full principal of the
mortgage may become due and payable immediately
upon the failure.
Closing Statement
A document which sets out the financial agreement
between the parties, the costs each must pay, and all
other similar information regarding a transaction (may be
joint or separate for each party).
Collateral
Property (real or personal) which is pledged to secure a
loan or mortgage. If the debt is not paid, the lender has
the right to sell the collateral to recoup the outstanding
principal and interest on the loan.
Building Restrictions
Limiting rules which may appear in building codes or in
title documents which control the size, placement,
materials, design or location of new construction.
against land which has an interest rate that changes
according to some outside index -- such as the federal
prime rate or the interest rate paid on government bonds
-- over the term of the mortgage. The change in interest
rate will result in a change in the periodic payments due
under the mortgage.
Acceleration Clause
A clause in a mortgage or loan. If the borrower fails to live
up to her obligations under the mortgage, the lender has
the legal right to demand that the full principal of the
mortgage may become due and payable immediately
upon the failure.
Closing Statement
A document which sets out the financial agreement
between the parties, the costs each must pay, and all
other similar information regarding a transaction (may be
joint or separate for each party).
Collateral
Property (real or personal) which is pledged to secure a
loan or mortgage. If the debt is not paid, the lender has
the right to sell the collateral to recoup the outstanding
principal and interest on the loan.
Building Restrictions
Limiting rules which may appear in building codes or in
title documents which control the size, placement,
materials, design or location of new construction.
An offer to purchase a property which is contingent on the
fulfillment of certain conditions before it becomes firm and
binding. Also known as "Conditional Sales Contract".
Contract
A legally binding agreement (oral or written) between two or
more persons regarding an exchange of some sort. A legally
binding contract must include consideration passing between the
parties, an intention on the part of all parties to be bound to the
contract, a meeting of the minds of the parties as to the contents
of the contract, and an element of clarity such that the terms of
the contract may be interpreted, understood and enforced by a
court
Bankruptcy
The state of being unable to pay your debts such that you
submit yourself to the protection of the state. A person or
business may voluntarily assign himself into bankruptcy or may
be petitioned into bankruptcy by his creditors. Once in
bankruptcy, the person surrenders his assets to a trustee in
bankruptcy who sells the assets for the benefit of the bankrupt's
creditors, first secured creditors then unsecured creditors. Once
a person is discharged from bankruptcy, none of his former
creditors may pursue him for his former debts.
Assignment
The transfer of any right, claim or interest to another person or
corporation. Often used to refer to the transfer of a mortgage
from one lender to another. Also a noun describing the
document which represents the assignment of the right etc.
fulfillment of certain conditions before it becomes firm and
binding. Also known as "Conditional Sales Contract".
Contract
A legally binding agreement (oral or written) between two or
more persons regarding an exchange of some sort. A legally
binding contract must include consideration passing between the
parties, an intention on the part of all parties to be bound to the
contract, a meeting of the minds of the parties as to the contents
of the contract, and an element of clarity such that the terms of
the contract may be interpreted, understood and enforced by a
court
Bankruptcy
The state of being unable to pay your debts such that you
submit yourself to the protection of the state. A person or
business may voluntarily assign himself into bankruptcy or may
be petitioned into bankruptcy by his creditors. Once in
bankruptcy, the person surrenders his assets to a trustee in
bankruptcy who sells the assets for the benefit of the bankrupt's
creditors, first secured creditors then unsecured creditors. Once
a person is discharged from bankruptcy, none of his former
creditors may pursue him for his former debts.
Assignment
The transfer of any right, claim or interest to another person or
corporation. Often used to refer to the transfer of a mortgage
from one lender to another. Also a noun describing the
document which represents the assignment of the right etc.
Lessee
A tenant under a lease
Letter of Intent
A written indication to the owner of property that the writer will
be making an offer to purchase the property.
Second Mortgage
A mortgage loan which is registered on title after another
mortgage (the first mortgage) and, therefore, is behind the first
mortgage in priority. In the event of default and sale of the
property, the second mortgagee will only be paid if there are
funds left after the payment of the first mortgagee.
Refinance
To replace an existing and perhaps mature mortgage with a new
mortgage on the same property. New mortgage may have
different terms than the old one.
Wetlands
Lands restricted for development as a result of their proximity to
bodies of water and the fact that they are occasionally or often
flooded. May also be environmentally sensitive.
Level Payment
A loan which requires regular, even payments.
A tenant under a lease
Letter of Intent
A written indication to the owner of property that the writer will
be making an offer to purchase the property.
Second Mortgage
A mortgage loan which is registered on title after another
mortgage (the first mortgage) and, therefore, is behind the first
mortgage in priority. In the event of default and sale of the
property, the second mortgagee will only be paid if there are
funds left after the payment of the first mortgagee.
Refinance
To replace an existing and perhaps mature mortgage with a new
mortgage on the same property. New mortgage may have
different terms than the old one.
Wetlands
Lands restricted for development as a result of their proximity to
bodies of water and the fact that they are occasionally or often
flooded. May also be environmentally sensitive.
Level Payment
A loan which requires regular, even payments.
Documentary evidence that title to personal property
(chattels) has passed to the Purchaser for valuable
consideration
Cap
In variable rate mortgages, a limit as to how high periodic
payments may go or how much the interest may change
within a given time period or over the life of the mortgage.
Capital Gain
Increase in value of a capital property (a property other
than a principal residence) upon which tax is payable,
either upon disposition of the property or the deemed
disposition of the property under tax rules.
Capital Loss
Decrease in value of a capital property (a property other
than a principal residence). May be set off against capital
gains or against regular income according to the tax rules.
Borrower
The person or company that receives money from a
lender (often a bank, credit union or trust company) in
exchange for a written promise to pay and a registered
lien on property.
Loan Default
In mortgages, the failure to make payments in full, on time
or at all or to live up to any other obligations placed on the
borrower by the loan agreement
(chattels) has passed to the Purchaser for valuable
consideration
Cap
In variable rate mortgages, a limit as to how high periodic
payments may go or how much the interest may change
within a given time period or over the life of the mortgage.
Capital Gain
Increase in value of a capital property (a property other
than a principal residence) upon which tax is payable,
either upon disposition of the property or the deemed
disposition of the property under tax rules.
Capital Loss
Decrease in value of a capital property (a property other
than a principal residence). May be set off against capital
gains or against regular income according to the tax rules.
Borrower
The person or company that receives money from a
lender (often a bank, credit union or trust company) in
exchange for a written promise to pay and a registered
lien on property.
Loan Default
In mortgages, the failure to make payments in full, on time
or at all or to live up to any other obligations placed on the
borrower by the loan agreement
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