A sale of property in which the proceeds are less than the balance of the loan, with the lender agreeing to accept the lower amount.

A fee charged to the borrower if they pay off their mortgage early, usually within the first few years of the loan term.

A permanent change to the terms of an existing mortgage, typically to make the loan more affordable for the borrower.

A legal claim on a property as a result of a court judgment against the property owner, often impacting the ability to sell or refinance.

A loan where the borrower pays only the interest for a certain period, with no principal payments due until later.

The ratio of the borrower’s monthly housing expenses to their monthly gross income.

A short-term loan secured by real estate, typically provided by private lenders rather than traditional financial institutions.

Loans backed by government agencies, including FHA, VA, and USDA loans, typically for borrowers who might not qualify for conventional loans.

Financial assistance programs designed to help first-time homebuyers with down payments or closing costs.

Strategies and programs designed to help homeowners avoid foreclosure, such as loan modifications or repayment plans.

An agreement that allows the borrower to pay taxes and insurance directly instead of through an escrow account.

An account held by a third party where funds for taxes and insurance are deposited and disbursed.

A loan secured by the borrower’s equity in their home, usually taken out for a specific purpose like home improvements.

A legal document that secures a loan on a property, allowing the lender to foreclose if the borrower defaults.

Failure to meet the terms of the loan agreement, often leading to foreclosure.

A provision in a loan agreement that allows a borrower to release the lender’s security interest in the property by fulfilling certain conditions.

A ratio used to evaluate a borrower’s ability to repay a loan, calculated by dividing the net operating income by the total debt obligations.

A condition or restriction placed on a property by the seller, lender, or governing authority, typically relating to its use.

A response by the seller to a buyer’s offer, usually involving a change in terms such as the price or closing date.

The maximum loan amount that can be issued under standard loan guidelines, which vary by location and are determined by Fannie Mae and Freddie Mac.

Positive factors such as a high credit score or large savings that help offset negative factors in a borrower’s financial situation.

An estimate of a property’s market value based on the sale prices of similar properties in the area.

The final step in the mortgage process where the borrower signs the loan documents, and the property ownership is transferred.

The assurance that the title of a property is free of legal issues or claims that could impact the buyer’s ownership.

A mortgage on movable personal property (e.g., cars, equipment) instead of real property.

A short-term loan used to bridge the gap between the purchase of a new property and the sale of the borrower’s existing property.

A loan with a large payment due at the end of the term, which is significantly higher than the monthly payments leading up to it.

The process of transferring the responsibility of a mortgage from the original borrower to a new one.

The ability of a borrower to meet their monthly mortgage payments based on their income, expenses, and the cost of the loan.

A final inspection of the property before closing to ensure it is in the agreed-upon condition and any repairs have been completed.

The rate of return on an investment property, calculated by dividing the net operating income by the property value.

A type of mortgage where the interest rate can change periodically, based on market conditions, often after an initial fixed-rate period.

A government-backed loan available to active-duty military members, veterans, and their families, often requiring no down payment.

The process where the lender evaluates the borrower’s creditworthiness and the risk involved in offering the loan.

Insurance that protects the lender or buyer from any legal issues or claims on the title of the property.

A loan offered to borrowers with poor credit histories who may not qualify for conventional loans.

A borrower who works for themselves and may have a more complex income verification process when applying for a mortgage.

An arrangement where the seller of a property provides the financing to the buyer instead of using a traditional lender.

A loan taken out on a property that already has a primary mortgage, often used to access additional funds.

A loan available to homeowners age 62 or older that allows them to convert part of their home equity into loan proceeds without making monthly payments.

The process of replacing an existing mortgage with a new one, often to take advantage of better interest rates or to change the loan terms.

Insurance required by lenders for borrowers with a down payment of less than 20%, protecting the lender in case of default.

An individual or institution that provides loans without being part of a traditional financial institution, often for non-conforming loans.

Fees paid to the lender at closing, typically 1% of the loan amount, used to reduce the interest rate on the loan.

The four main components of a monthly mortgage payment: principal, interest, property taxes, and homeowner’s insurance.

A fee charged by the lender to process the loan, usually expressed as a percentage of the loan amount.

A loan that does not meet the standards set by government-sponsored enterprises like Fannie Mae or Freddie Mac.

A situation where the loan balance increases over time because the monthly payments do not cover the full interest charge.

A preliminary process where the borrower provides basic financial information to receive an estimate of the loan amount they may qualify for.

A process where a lender evaluates the borrower’s financial situation and creditworthiness to determine the loan amount they qualify for.

The regular payments made by the borrower to the lender, typically consisting of principal, interest, taxes, and insurance (PITI).

Insurance that protects the lender in case the borrower defaults on the loan, often required for loans with a down payment of less than 20%.

A person or company that helps borrowers find a lender and negotiate loan terms, without lending money directly.

The date on which the remaining balance of the loan is due in full, or the end of the loan term.

The ratio of the loan amount to the appraised value or purchase price of the property, whichever is lower.

A professional employed by a lender who assists borrowers with the application process and recommends loan options.

A document provided to the borrower that outlines the estimated costs of the loan, including the interest rate, monthly payments, and fees.

A financial institution or individual that provides funds to borrowers in exchange for repayment with interest.

A mortgage that exceeds the limits set by the Federal Housing Finance Agency and cannot be purchased by Fannie Mae or Freddie Mac.

The percentage charged by a lender for borrowing money, typically expressed as an annual percentage.

The supply and demand of homes for sale or rent, which impacts property prices and mortgage rates.

An insurance policy that protects a homeowner’s property against loss or damage from events like fire, theft, or natural disasters.

A professional evaluation of a property’s condition, often conducted before purchase to identify any potential issues.

A revolving line of credit that allows homeowners to borrow against the equity in their home, typically at a variable interest rate.

A loan where the borrower uses the equity in their home as collateral, often used for large expenses such as home improvements.

A financial services corporation created by the government to help expand the secondary mortgage market, such as Fannie Mae or Freddie Mac.

A loan that is insured or guaranteed by a government agency, such as FHA, VA, or USDA loans.

A letter from a donor stating that the funds provided for the borrower’s down payment are a gift and not a loan.

The legal process through which a lender takes possession of a property due to the borrower’s failure to make mortgage payments.

A mortgage with an interest rate that remains the same for the entire term of the loan.

A government-backed mortgage designed to help low- to moderate-income borrowers with a lower down payment requirement.

An account held by a third party where funds for property taxes, insurance, and other fees are deposited by the borrower.

The value of the homeowner’s interest in their property, calculated by subtracting the mortgage balance from the property’s market value.

The initial amount paid upfront by the borrower toward the purchase of a home, typically expressed as a percentage of the home’s price.

A financial ratio that compares a borrower’s total monthly debt payments to their gross monthly income.

A numerical representation of a borrower’s creditworthiness, based on credit history and other financial factors.

A mortgage that allows the borrower to convert from an adjustable-rate mortgage to a fixed-rate mortgage under specified conditions.

A type of mortgage that is not insured or guaranteed by the government and follows standard lending practices.

A person who signs a loan agreement alongside the borrower and agrees to be responsible for the loan if the borrower defaults.

A document provided to the borrower three days before closing that outlines the final terms of the loan and all costs involved.

The expenses associated with finalizing a mortgage transaction, including appraisal fees, title insurance, and attorney fees.

A financing arrangement where the borrower or seller pays an upfront fee to reduce the interest rate for the initial years of the loan.

A person or firm that acts as an intermediary between borrowers and lenders to facilitate the loan process.

A violation of any terms or conditions of a legally binding agreement, such as a mortgage contract.

A mortgage payment plan in which payments are made every two weeks, resulting in 26 half-payments per year.

A large lump-sum payment due at the end of a loan term, typically after a period of smaller payments.

A type of mortgage where the interest rate is subject to change over time, based on market conditions.

The total cost of borrowing, expressed as a yearly interest rate that includes both the interest rate and any fees or additional costs.

The process of gradually paying off a loan over time through regular payments, which typically cover both the principal and interest.

Sample term description here for you to read and test when you are building the site

Sample term description here for you to read and test when you are building the site