Down Payment - Law Dictionary Search Results
Home Dictionary Name: down paymentdown payment
down payment the portion of a home's purchase price that is paid in cash and is not part of the mortgage loan. This amount varies based on the loan type, but is determined by taking the difference of the sale price and the actual mortgage loan amount. Mortgage insurance is required when a down payment less than 20 percent is made. Source: U.S. Department of Housing and Urban Development ...
mortgage insurance
mortgage insurance a policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price. Insurance purchased by the buyer to protect the lender in the event of default. Typically purchased for loans with less than 20 percent down payment. The cost of mortgage insurance is usually added to the monthly payment. Mortgage insurance is maintained on conventional loans until the outstanding amount of the loan is less than 80 percent of the value of the house or for a set period of time (7 years is common). Mortgage insurance also is available through a government agency, such as the Federal Housing Administration (FHA) or through companies (Private Mortgage Insurance or PMI). Source: U.S. Department of Housing and Urban Development ...
Redemption
Redemption, is the act of redeeming, which in its ordinary meaning is equal to bringing off a charge or obligation by payment--.By the down payment, the entire land revenue to be recovered from that land was redeemed.Redemption, is the act of redeeming, which, in its ordinary meaning is equal to bringing off a charge or obligation by payment, Sarish Chandra v. CLT, AIR 1961 SC 487: (1961) 1 SCJ 495.Redemption. 1. A paying off of a loan (see FUNDS). The term is used especially with reference to the paying off of a mortgage debt. An action of redemption is a suit brought to compel the mortgagee to recover the property to the mortgagor on the latter paying the mortgage debt. See EQUITY OF REDEMPTION; PROVISO FOR REDEMPTION.2. Commutation or the substitution of one lump payment for a succession of annual ones: e.g., see the Land Tax and the Tithe Redemption Acts and many other statutes.Redemption is the act of redeeming which in its ordinary meaning is equal to bringing off a charge or obl...
buy down
buy down the seller pays an amount to the lender so the lender provides a lower rate and lower payments many times for an ARM. The seller may increase the sales price to cover the cost of the buy down. Source: U.S. Department of Housing and Urban Development ...
lease purchase (lease option)
lease purchase (lease option) assists low to moderate income homebuyers in purchasing a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment. Source: U.S. Department of Housing and Urban Development ...
deposit (earnest money)
deposit (earnest money) money put down by a potential buyer to show that they are serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. During the contingency period the money may be returned to the buyer if the contingencies are not met to the buyer's satisfaction. Source: U.S. Department of Housing and Urban Development ...
earnest money (deposit)
earnest money (deposit) money put down by a potential buyer to show that they are serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. During the contingency period the money may be returned to the buyer if the contingencies are not met to the buyer's satisfaction. Source: U.S. Department of Housing and Urban Development ...
cash reserves
cash reserves a cash amount sometimes required of the buyer to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender. Source: U.S. Department of Housing and Urban Development ...
loan to value (ltv) ratio
loan to value (ltv) ratio a percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment. Source: U.S. Department of Housing and Urban Development ...
piti reserves
piti reserves a cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months. Source: U.S. Department of Housing and Urban Development ...
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