The number of percentage points
the lender adds to the index rate to
calculate the ARM interest rate at
The most likely price a
given property will bring if widely
exposed on the market, assuming fully
informed buyer and seller.
Title that is free of
liens, clouds on title and legal
defects affecting the property
A lien created by statute
for the purpose of securing priority
of payment for the price or value of
work performed and materials furnished
in construction or repair of
improvements to land.
A lien or claim against real property
given as security for a loan.
A professional that helps
consumers through the loan selection,
processing and closing of a mortgage
loan. Most mortgage brokers have
access to a wide range of mortgage
products through many mortgage
lenders. Mortgage brokers are paid a
fee by the borrower when a suitable
mortgage is found and closed.
A lien or claim against real
property given as security for a loan.
It is a two party agreement as apposed
to tri-party agreement of a deed of
The lender of money or the
receiver of the mortgage document.
Insurance required for a
loan-to-value ratio above 80.01%.
that orginate mortgage loans through
loan officers or independent mortgage
brokers and sell the mortgages into
the secondary mortgage market
servicing retained or released.
The document outlining the
amount of the debt, the terms and
payments, the interest rate, margins
and caps for ARMs, the name of the
lender and the borrower, and any other
material item required by the lender.
A funding facility,
such as a commercial bank, that is
used by mortgage companies to fund
loans which are sold to an investor
shortly thereafter. The mortgage notes
are used as collateral for this
The borrower of money or the giver
of the mortgage document.