INDEX

A nationally published financial measure of economic conditions usually relative to other financial instruments such as bonds or Treasury Bills. The lender uses a particular index (such as the 6 month Treasury Bill) to calculate your particular monthly payment by adding a fixed margin to the index. The margin is the lenders profit and is over and above the normal index because of the assumption of loan risk. Your lender will adjust the interest on your ARM at regular time intervals also called adjustment intervals (like 6 months), by adding their particular margin to the particular index of the loan. The amount the loan is adjusted is also controlled by a periodic cap (the maximum amount the loan can change during your particular adjustment interval), the monthly cap (the maximum amount the monthly payment can change from one adjustment interval to the next), and the lifetime cap (the total amount the loan can change from the initial rate of the loan).



MORTGAGE GLOSSARY

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 | 0-100


A

Adjustable Rate Mortgages (ARMS)
Adjustable Rate Refi (Refinance)
Amortization
Annual Percentage Rate (APR)
Assumable Loans

B

Bad Credit Refi (Refinance)
Balloon Loans
BC & D Lender or Loan
Buydown

C

Cash-Out Refi
Closing
Closing Costs
Conventional Mortgage
Convertible ARM
Cosigner
Credit Report
Credit Score

D

Debt Consolidation
Debt Ratio
Default
Discount Rate
Down-payment

E

Effective Rate
Equity
Escrow
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F

FHA (Federal Housing Authority) Loan
Fixed Rate Mortgages
Fixed Rate Refi (Refinance)
Foreclosure
Fully Amortizing Payment
Fully Indexed Interest Rate

G

Government Loans
Graduated Payment Mortgages
Growing Equity Mortgage

H

Home Equity Line of Credit (HELOC)
Home Equity Loan (second mortgage)
Housing Ratio
Hybrid ARM

I

Index
Interest Due
Interest Only Loan
Interest Only Refi (Refinance)
Interest Rate

J

Jumbo (or Non-Conforming) Loans
Jumbo Loan Refi
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K


L

Lenders Margin
Lien
Loan to Value (LTV) Ratio
Lock-in

M

Mortgage
Mortgage Broker
Mortgage Company
Mortgage Insurance
Mortgage Lender
Mortgage Reduction Programs
Mortgage Term

N

Negative Amortization
Negative Points

O

Option ARM
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P

PITI
PMI (Private Mortgage Insurance)
Points
Prepayment Penalty
Pre-Approval
Pre-qualification
Principal
Property Appraisal

Q

Qualification

R

Rate Protection
Refinancing
Residual Income

S

Second Mortgage
Servicing
Sub-Prime Borrower
Sub-Prime Lender

T

Term
Truth in Lending Law
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U

Underwriter
Uniform Residential Loan Application (1003)

V

VA (Veterans Administration) Loan

W

Wrap-around Mortgage

X


Y

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Z


0-100

80/10/10, 80/15/5, and 80/20/0 loan plans
100% Loan
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Type of Loan

Mortgage Refinance
Home Equity Loan or Line
Debt Consolidation
New Home Loan

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Historical Federal Funds Rate

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*National Rates