#Principal definition mortgage professional

Chattel mortgageīorrowers can use this type of mortgage to buy or refinance a manufactured home that's not permanently attached to land. This document enables veterans to obtain lower down payments on certain FHA insured loans. The document given to veterans or reservists who have served 90 days of continuous active duty (including training time) It may be obtained by sending DD 214 to the local VA office with form 26-8261a (request for certificate of veteran status). Certificate of reasonable value (CRV)Īn appraisal issued by the Veterans Administration showing the property's current market value Certificate of veteran status Certificates of eligibility may be obtained by sending DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility). The document given to qualified veterans which entitles them to VA guaranteed loans for homes, business, and mobile homes. Caps (payment)Ĭonsumer safeguards which limit the amount monthly payments on an adjustable-rate mortgage may change. Caps (interest)Ĭonsumer safeguards which limit the amount the interest rate on an adjustable-rate mortgage may change per year and/or the life of the loan. The cash flow should be large enough to pay the expenses of the income-producing property (mortgage payment, maintenance, utilities, etc). The amount of cash derived over a certain period of time from an income-producing property. While the payments are initially low, they will increase when the subsidy expires. When the lender and/or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan.

Brokers usually charge a fee or receive a commission for their services. The broker does not loan the money himself. BrokerĪn individual in the business of assisting in arranging funding (or negotiating contracts) for a client. One who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full. Blanket mortgageĪ mortgage covering at least two pieces of real estate as security for the same mortgage. 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. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply. The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller.

#Principal definition mortgage professional

AppraisalĪn estimate of the value of a property, made by a qualified professional called an 'appraiser.' AssessmentĪ local tax levied against a property for a specific purpose, such as a sewer or street lights. The APR allows home buyers to compare different types of mortgages based on the annual cost of each loan. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage because it takes into account point and other credit costs. Is an interest rate reflecting the cost of a mortgage as a yearly rate. Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. 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. Also sometimes known as the renegotiable rate mortgage, the variable rate mortgage, or the Canadian rollover mortgage. Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. The right of the mortgage (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale Clause.