Mortgage - Law Dictionary Search Results
debt-to-income ratio
debt-to-income ratio a comparison or ratio of gross income to housing and non-housing expenses; With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined
document recording
recording after closing on a loan, certain documents are filed and made public record. Discharges for the prior mortgage holder are filed first. Then the deed is filed with the new owner's and mortgage company's names. Source:
escrow account
escrow account a separate account into which the lender puts a portion of each monthly mortgage payment; an escrow account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance,
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homeownership education classes
that stress the need to develop a strong credit history and offer information about how to get a mortgage approved, qualify for a loan, choose an affordable home, go through financing and closing processes, and avoid mortgage
interest
that exists by contract as security for payment or performance of an obligation [the security interest of a mortgagee in the mortgaged property] ;also : lien NOTE: While a lien may be created by statutory or judicial
loan origination fee
loan origination fee a charge by the lender to cover the administrative costs of making the mortgage. This charge is paid at the closing and varies with the lender and type of loan. A loan
open-end
permitting additional debt to be incurred under the original debt instrument subject to specified conditions see also open-end mortgage at mortgage b : having fluctuating capitalization of shares that are issued or redeemed at the current net
payment change date
payment change date the date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the
cash-out refinance
cash-out refinance when a borrower refinances a mortgage at a higher principal amount to get additional money. Usually this occurs when the property has appreciated in
pledge
property that is used as security esp. upon delivery ;broadly : a security interest in collateral compare chattel mortgage at mortgage b : a contract under which the delivery of property (as personal property) as security takes
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