Mortgage
Negative amortization
Mortgage banker
Mortgage broker
Non-conforming mortgage loan
Maturity
Mortgage insurance
Mortgagee
Mortgagor
Market value
Margin
Notice of Value
Mortgage insurance premium
Negative equity
Also known as MIP, this is the upfront premium and the annual premium a borrower of an FHA loan must pay to insure an FHA-approved lender against the loss incurred from a borrower default of the mortgage loan.
Originates and sells home loans in pools on the secondary market to investors such as Freddie Mac and Fannie Mae. Typically, they finance the loans with warehouse lines of credit extended by lenders, then sell the loans on the secondary market.
Borrowers pay this to compensate the lender from loss in the event of a borrower default of the loan.
A property that is worth less than the mortgage outstanding on it is in this situation, which is also known as being underwater.
Lenders add percentage points to an index, such as the one-year Treasury bill, that they use to calculate the adjustable rate of a mortgage.
This is the lender that extends a loan to a borrower who uses it to purchase real estate property. The property is collateral for the loan's repayment.
This is the borrower of a loan that is used to purchase real estate property. The property is collateral to the lender, the mortgagee, for the loan's repayment.
Under normal market conditions, a property would sell within a reasonable amount of time for a generally accepted value, assuming the homeowner voluntarily sells it and a buyer voluntarily purchases it.
These are loans for buying property that are secured by that same property. If a borrower defaults on the loan obligation, this gives the lender the right to foreclosure on the property the borrower originally offered up as collateral.
When monthly payments do not cover the interest and principal that would be due if the loan were being paid off, the loan is in this state. The outstanding amount of interest is added to the loan's principal, increasing the principal balance over the loan's term.
Such a loan does not meet Fannie Mae and Freddie Mac guidelines, one of which sets a maximum loan amount of $417,000 in most areas of the country. Additionally, this mortgage loan may fail to meet DTI ratio guidelines and documentation requirements. It is never owned or guaranteed by Fannie Mae or Freddie Mac, and it typically has higher interest rates than conforming mortgage loans.
This document is used in VA loans, created by a VA appraiser, that discloses the estimated value of a property to the lender and borrower. When a borrower has a NOV, and then changes lenders, the second lender is required to use the same appraisal value as long as it is within the NOV's expiration date.
A loan achieves this when it reaches its final payment date, which means any remaining principal or accrued interest must be paid.
They match borrowers with lenders, and originate the loan for a chosen lender. They are paid from origination costs charged to the borrower or from a yield spread premium paid by the mortgage lender.
