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- G-
| Government Mortgage |
A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional mortage. |
| Government National Mortgage Association |
A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD).
Created by Congress on September 1, 1968, GNMA assumed responsibility for the special assistance loan program formerly administered
by Fannie Mae. Popularly known as Ginnie Mae. |
| Grantee |
The person to whom an interest in real property is conveyed. |
| Grantor |
The person conveying an interest in real property. |
| Ground Rent |
The amount of money that is paid for the use of land when title to a property is held as a leasehold
estate rather than as a fee simple estate. |
| Group Home |
A single-family residential structure designed or adapted for occupancy by unrelated developmentally
disabled persons. The structure provides long-term housing and support services that are residential in nature. |
| Growing-Equity Mortgage (GEM) |
A fixed-rate mortgage that provides scheduled payment increases over an established period of
time, with the increased amount of the monthly payment applied directly toward reducing the remaining balance of the mortgage.
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| Guarantee Mortgage |
A mortgage that is guaranteed by a third party. |
| Guaranteed Loan |
Also known as a government mortgage. | |
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- H-
| Hazard Insurance |
Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism,
or other hazards. |
| Home Equity Conversion Mortgage (Hecm) |
A special type of mortgage that enables older home owners to convert the equity they have in
their homes into cash, using a variety of payment options to address their specific financial needs. Unlike traditional home
equity loans, a borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan
does not have to be repaid until the borrower no longer occupies the property. Sometimes called a reverse mortgage. |
| Home Equity Line Of Credit |
A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain
multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage
of the borrower's equity in a property. |
| Home Inspection |
A thorough inspection that evaluates the structural and mechanical condition of a property.
A satisfactory home inspection is often included as a contingency by the purchaser. Contrast with appraisal. |
| Homekeepersm |
Fannie Mae's adjustable-rate conventional reverse mortgage, which allows older homeowners to
borrow against the value of their homes and receive the proceeds according to the payment option they select. The amount available
is based on the number of borrowers and their ages and the adjusted property value. Anyone 62 years or older who either owns
his or her own home free and clear or has very low mortgage debt is eligible. |
| Homeowners' Association |
A nonprofit association that manages the common areas of a planned unit development (PUD) or
condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds
title to the common elements. |
| Homeowner's Insurance |
An insurance policy that combines personal liability insurance and hazard insurance coverage
for a dwelling and its contents. |
| Homeowner's Warranty (HOW) |
A type of insurance that covers repairs to specified parts of a house for a specific period
of time. It is provided by the builder or property seller as a condition of the sale. |
| HomestyleŽ Mortgage Loan |
A mortgage that enables eligible borrowers to obtain financing to remodel, repair, and upgrade
their existing homes or homes that they are purchasing. See also HomeStyle Standard Mortgage, HomeStyle Remodeler, HomeStyle
Community Mortgage and HomeStyle Consumer Energy Loan. |
| Housing Expense Ratio |
The percentage of gross monthly income that goes toward paying housing expenses. |
| HUD Median Income |
Median family income for a particular county or metropolitan statistical area (MSA), as estimated
by the Department of Housing and Urban Development (HUD). |
| HUD-1 Statement |
A document that provides an itemized listing of the funds that are payable at closing. Items
that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on
the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the
HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. The blank form for the statement
is published by the Department of Housing and Urban Development (HUD). The HUD-1 statement is also known as the "closing statement"
or "settlement sheet." | |
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- I-
| Income Property |
Real estate developed or improved to produce income. |
| Index |
A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index
is generally a published number or percentage, such as the average interest rate or yield on Treasury bills. A margin is added
to the index to determine the interest rate that will be charged on the ARM. This interest rate is subject to any caps that
are associated with the mortgage. |
| In-File Credit Report |
An objective account, normally computer-generated, of credit and legal information obtained
from a credit repository. |
| Inflation |
An increase in the amount of money or credit available in relation to the amount of goods or
services available, which causes an increase in the general price level of goods and services. Over time, inflation reduces
the purchasing power of a dollar, making it worth less. |
| Initial Interest Rate |
The original interest rate of the mortgage at the time of closing. This rate changes for an
adjustable-rate mortgage (ARM). Sometimes known as "start rate" or "teaser." |
| Installment |
The regular periodic payment that a borrower agrees to make to a lender. |
| Installment Loan |
Borrowed money that is repaid in equal payments, known as installments. A furniture loan is
often paid for as an installment loan. |
| Insurable Title |
A property title that a title insurance company agrees to insure against defects and disputes.
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| Insurance |
A contract that provides compensation for specific losses in exchange for a periodic payment.
An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium. |
| Insurance Binder |
A document that states that insurance is temporarily in effect. Because the coverage will expire
by a specified date, a permanent policy must be obtained before the expiration date. |
| Insured Mortgage |
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage
insurance (MI). If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the
insured amount. |
| Interest |
The fee charged for borrowing money. |
| Interest Accrual Rate |
The percentage rate at which interest accrues on the mortgage. In most cases, it is also the
rate used to calculate the monthly payments, although it is not used for an adjustable-rate mortgage (ARM) with payment change
limitations. |
| Interest Rate |
The rate of interest in effect for the monthly payment due. |
| Interest Rate Buydown Plan |
An arrangement wherein the property seller (or any other party) deposits money to an account
so that it can be released each month to reduce the mortgagor's monthly payments during the early years of a mortgage. During
the specified period, the mortgagor's effective interest rate is "bought down" below the actual interest rate. |
| Interest Rate Ceiling |
For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage
note. |
| Interest Rate Floor |
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage
note. |
| Investment Property |
A property that is not occupied by the owner. |
| Ira (Individual Retirement Account) |
A retirement account that allows individuals to make tax-deferred contributions to a personal
retirement fund. Individuals can place IRA funds in bank accounts or in other forms of investment such as stocks, bonds, or
mutual funds. | |
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- J-
| Joint Tenancy |
A form of co-ownership that gives each tenant equal interest and equal rights in the property,
including the right of survivorship. |
| Judgment |
A decision made by a court of law. In judgments that require the repayment of a debt, the court
may place a lien against the debtor's real property as collateral for the judgment's creditor. |
| Judgment Lien |
A lien on the property of a debtor resulting from the decree of a court. |
| 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 |
A loan that exceeds Fannie Maes mortgage amount limits. Also called a nonconforming loan. | |
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There are no entries for this letter | | |
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- L-
| Late Charge |
The penalty a borrower must pay when a payment is made a stated number of days (usually 15)
after the due date. |
| Lease |
A written agreement between the 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 |
A way of holding title to a property wherein the mortgagor does not actually own the property
but rather has a recorded long-term lease on it. |
| Lease-Purchase Mortgage Loan |
An alternative financing option that allows low- and moderate-income home buyers to lease a
home from a nonprofit organization with an option to buy. Each month's rent payment consists of principal, interest, taxes
and insurance (PITI) payments on the first mortgage plus an extra amount that is earmarked for deposit to a savings account
in which money for a downpayment will accumulate. |
| Legal Description |
A property description, recognized by law, that is sufficient to locate and identify the property
without oral testimony. |
| Liabilities |
A person's financial obligations. Liabilities include long-term and short-term debt, as well
as any other amounts that are owed to others. |
| Liability Insurance |
Insurance coverage that offers protection against claims alleging that a property owner's negligence
or inappropriate action resulted in bodily injury or property damage to another party. |
| Lien |
A legal claim against a property that must be paid off when the property is sold. |
| Lifetime Payment Cap |
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease
over the life of the mortgage. See cap. |
| Lifetime Rate Cap |
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase
or decrease over the life of the loan. See cap, interest rate ceiling and interest rate floor. |
| 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. |
| Liquid Asset |
A cash asset or an asset that is easily converted into cash. |
| Loan |
A sum of borrowed money (principal) that is generally repaid with interest. |
| Loan Commitment |
See commitment letter. |
| Loan Origination |
The process by which a mortgage lender brings into existence a mortgage secured by real property.
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| Loan-To-Value (LTV) Percentage |
The relationship between the principal balance of the mortgage and the appraised value (or sales
price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has a LTV percentage of 80 percent.
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| Lock-In |
A written agreement in which the lender guarantees a specified interest rate if a mortgage goes
to 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 borrower. See lock-in.
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