Bond
Loan
A sum of borrowed money (principal) that is generally repaid
with interest
Application
Application is a document that supplies information needed
for a lending institution to qualify an individual for a loan. This
will provide personal and financial information.
Equity
Equity is the amount of money value of a property or an
interest in a property in excess of claims or liens against it.
Amortization
A schedule which provides for the gradual repayment of a
mortgage loan usually by the contribution to the principal at
the time of each periodic interest payment.
Loan Points
Terms used to refer to money that will used to obtain a
particular interest rate for a loan. This is usually calculated at
a rate of 1% of the original loan, which would be stated as 1
point. In order to lower the loan interest rate, a bank might
allow an individual to pay a specified number of points. For
example, paying 2 points might lower the interest rate ½
percent over a 30 year mortgage.
Loan
A sum of borrowed money (principal) that is generally repaid
with interest
Application
Application is a document that supplies information needed
for a lending institution to qualify an individual for a loan. This
will provide personal and financial information.
Equity
Equity is the amount of money value of a property or an
interest in a property in excess of claims or liens against it.
Amortization
A schedule which provides for the gradual repayment of a
mortgage loan usually by the contribution to the principal at
the time of each periodic interest payment.
Loan Points
Terms used to refer to money that will used to obtain a
particular interest rate for a loan. This is usually calculated at
a rate of 1% of the original loan, which would be stated as 1
point. In order to lower the loan interest rate, a bank might
allow an individual to pay a specified number of points. For
example, paying 2 points might lower the interest rate ½
percent over a 30 year mortgage.
Interest Rate
A charge for borrowed money generally a percentage of the
original amount of the loan.
Origination Fee
Origination fee is a fee charged by mortgage companies and
banks that for the service of preparing and servicing a loan.
This is normally 1% of the loan amount.
Mortgage Deed
Deed is a legal document establishing a loan on a particular
piece of property.
Down payment
Mortgagee
The lender who makes the mortgage loan to an individual.
One Time Closing
One Time Closing allows the home owner to only pay once for
the closing on a new home. If this is not allowed, the home
owner will pay the closing costs on both the construction loan
and the permanent loan.
A charge for borrowed money generally a percentage of the
original amount of the loan.
Origination Fee
Origination fee is a fee charged by mortgage companies and
banks that for the service of preparing and servicing a loan.
This is normally 1% of the loan amount.
Mortgage Deed
Deed is a legal document establishing a loan on a particular
piece of property.
Down payment
Mortgagee
The lender who makes the mortgage loan to an individual.
One Time Closing
One Time Closing allows the home owner to only pay once for
the closing on a new home. If this is not allowed, the home
owner will pay the closing costs on both the construction loan
and the permanent loan.
| Financial-4 |
Construction Jargon
Permanent Loan
A permanent loan refers to the permanent mortgage on a
house.
Capped Rate
A Capped Rate is a limit that is put on the interest rate on
mortgage payments over the life of the mortgage. In an
Adjustable Rate Mortgage the rate can change but cannot
exceed the capped rate.
Convertibility
Convertibility allows an individual to change an Adjustable
Rate Mortgage to a Fixed rate Mortgage at a later date.
Discount Rate
A basis for interest rates, the rate charged by the Federal
Reserve System on loans to banks.
Due On Sale
A clause in a mortgage which requires that the mortgage be
paid out in full upon the sale of the house.
Graduated Payment
A periodic payment which will increase at a stated rate over a
stated period of time before levelling off for the remainder of
the term of the loan.
Vendor's Lien
Financing of a purchase of property whereby the vendor
accepts only a portion of the purchase price up front and
accepts a mortgage (with periodic payments and interest
chargeable) for the remainder
A permanent loan refers to the permanent mortgage on a
house.
Capped Rate
A Capped Rate is a limit that is put on the interest rate on
mortgage payments over the life of the mortgage. In an
Adjustable Rate Mortgage the rate can change but cannot
exceed the capped rate.
Convertibility
Convertibility allows an individual to change an Adjustable
Rate Mortgage to a Fixed rate Mortgage at a later date.
Discount Rate
A basis for interest rates, the rate charged by the Federal
Reserve System on loans to banks.
Due On Sale
A clause in a mortgage which requires that the mortgage be
paid out in full upon the sale of the house.
Graduated Payment
A periodic payment which will increase at a stated rate over a
stated period of time before levelling off for the remainder of
the term of the loan.
Vendor's Lien
Financing of a purchase of property whereby the vendor
accepts only a portion of the purchase price up front and
accepts a mortgage (with periodic payments and interest
chargeable) for the remainder
A written instrument of indebtedness, promising to pay a
certain person a particular sum of money upon stated terms.
Assessed Value
The value assigned to a given property by the municipality for
the purpose of establishing realty taxes payable by the owner
of the property.
Depreciation
The lessening of the value of a property over time
Encumbrance
Any right, interest or other claim against land which is
registered on title and affects the owner's ability to sell the
property.
Interim Financing
A construction loan to pay for construction costs up to
completion
Abstract Title
A summary listing of the documents registered in the local land
registry office and which affect title (ownership) of a particular
property
