Mortgage - Page 3 - Law Dictionary

adjustable-rate mortgage (arm)

adjustable-rate mortgage (arm) a mortgage loan that does not have a fixed interest rate. During the life of the loan the interest rate will change based on the index rate. Also referred to as adjustable mortgage loans (AMLs) or variable-rate mortgages (VRMs). Source: U.S. Department of Housing and Urban Development ...

open mortgage clause

open mortgage clause : a mortgage clause which provides that payments go first to the mortgagee to the extent of its interest and which makes the mortgagee's right to receive payment dependent on the mortgagor's right to recover under the policy called also simple mortgage clause ...

secondary mortgage market

secondary mortgage market the buying and selling of mortgage loans. Investors purchase residential mortgages originated by lenders, which in turn provides the lenders with capital for additional lending. Source: U.S. Department of Housing and Urban Development ...

mortgage score

mortgage score a score based on a combination of information about the borrower that is obtained from the loan application, the credit report, and property value information. The score is a comprehensive analysis of the borrower's ability to repay a mortgage loan and manage credit. Source: U.S. Department of Housing and Urban Development ...

mortgage-backed security (mbs)

mortgage-backed security (mbs) a Fannie Mae security that represents an undivided interest in a group of mortgages. Principal and interest payments from the individual mortgage loans are grouped and paid out to the MBS holders. Source: U.S. Department of Housing and Urban Development ...

open-end mortgage

open-end mortgage see mortgage ...

prepayment penalty mortgage (ppm)

prepayment penalty mortgage (ppm) a type of mortgage that requires the borrower to pay a penalty for prepayment, partial payment of principal or for repaying the entire loan within a certain time period. A partial payment is generally defined as an amount exceeding 20% of the original principal balance. Source: U.S. Department of Housing and Urban Development ...

private mortgage insurance

private mortgage insurance : insurance that a lender may require a borrower to purchase to cover losses in the event of default of a residential loan esp. when the borrower is giving the lender a mortgage on property in which the borrower has less than 20 percent equity ...

purchase money mortgage

purchase money mortgage see mortgage ...

reverse mortgage

reverse mortgage see mortgage ...

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