A & D Loan
Acquisition and development loan- a loan for the purchase of raw land for the purpose development.
A written history of the ownership of a parcel of land.
Allows the lender to speed up the rate at which your loan comes due or even to demand immediate payment of the entire outstanding balance of the loan should your default on you loan.
A declaration by a notary, certifying, by way of personal knowledge or written identification, the identity of the signer.
Adjustable Rate Mortgage (ARM)
On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years, depending on the index.
A sworn statement in writing.
American Land Title Association (ALTA)
An organization of title companies specializing in Real Property Law which has standardized forms and coverage on a national basis. This is standardized coverage.
Amortization refers to the process of paying off a loan with regular payments over time. In the mortgage world (on a fully amortizing loan), these payments cover the principal and interest and ensure that your loan balance is paid in full at the end of the amortization term. Typical amortization terms are 15, 20 and 30 years.
Annual Percentage Rate (APR)
An estimate of the value of real property, made by a qualified professional called an “appraiser.” An appraisal will be needed to determine the value of your property.
Back End Ratio
This refers to the debt-to-income ratio calculated using principal, interest, taxes, insurance and consumer credit obligations divided by gross monthly income. It is expressed as a percentage.
Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.
The entity funding the loan. This is the entity to which the loan is owed.
An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
When the lender and/or the home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires.
Certificate of Occupancy
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The score given to an individual to determine the credit worthiness. These scores come from TRW, Equifax and Trans Union.