Mortgage
Terms
________________________________________
A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
________________________________________
Satisfaction of Mortgage
The document issued by the mortgagee when the mortgage loan is paid in full.
Also called a "release of mortgage."
Second Mortgage
A mortgage made subsequent to another mortgage and subordinate to the first one.
Secondary Mortgage Market
The place where primary mortgage lenders sell the mortgages they make to obtain
more funds to originate more new loans. It provides liquidity for the lenders.
Security
The property that will be pledged as collateral for a loan.
Seller Carry-back
An agreement in which the owner of a property provides financing, often in combination
with an assumable mortgage. See owner financing.
Servicer
An organization that collects principal and interest payments from borrowers
and manages borrowers’ escrow accounts. The servicer often services mortgages
that have been purchased by an investor in the secondary mortgage market.
Servicing
All the steps and operations a lender performs to keep a loan in good standing,
such as collection of payments, payment of taxes, insurance, property inspections
and the like.
Settlement/Settlement Costs
see closing/closing costs
Shared Appreciation Mortgage (SAM)
A mortgage in which a borrower receives a below-market interest rate in return
for which the lender (or another investor such as a family member or other partner)
receives a portion of the future appreciation in the value of the property. May
also apply to mortgage where the borrowers shares the monthly principal and interest
payments with another party in exchange for part of the appreciation.
Simple Interest
Interest which is computed only on the principle balance.
Standard Payment Calculation
The method used to determine the monthly payment required to repay the remaining
balance of a mortgage in substantially equal installments over the remaining
term of the mortgage at the current interest rate.
Step-Rate Mortgage
A mortgage that allows for the interest rate to increase according to a specified
schedule (i.e., seven years), resulting in increased payments as well. At the
end of the specified period, the rate and payments will remain constant for the
remainder of the loan.
Survey
A measurement of land, prepared by a registered land surveyor, showing the location
of the land with reference to known points, its dimensions, and the location
and dimensions of any buildings.
Sweat Equity
Equity created by a purchaser performing work on a property being purchased.
|
