Account held by a lender for payment of taxes, insurance or other related expenses.
Incidental Recording, Delivery, Wire, etc., Fees
Other costs that are incurred when a real estate loan is closed.
Income to Debt Ratios
Primary Housing Expense(PHE)/Income Ratio(I): This ratio is the result of dividing the housing expenses for the proposed loan by the monthly income of the borrower(s).
Total Obligations(TO)/Income Ratio(I): This ratio is the result of dividing the housing expenses for the proposed loan plus the borrower(s) other monthly credit obligations by the monthly income of the borrower(s).
A published rate or benchmark measure of current interest rate levels used to calculate periodic changes in rates charged on adjustable rate mortgages
Initial Interest Rate
Typically one to three percentage points lower than that of most fixed-rate mortgages. Lower interest rates also make ARMs somewhat easier to qualify for. The initial interest rate is tied to certain economic indicators that dictate in part what the monthly payments will be.
A tax term used to describe a sale which is usually accomplished by use of a land contract.
A mortgage insured against loss to the mortgagee in the event of default and failure of the mortgaged property to satisfy the balance owing plus cost of foreclosure.
Interest Payment Notification (1098)
A federal tax form that lenders use at year end to notify borrowers of the interest that was paid on their mortgage over the last year.
The percentage of an amount of money which is paid for its use for a specified time.
A property that is not occupied by the owner and in most cases produces income or is held for gains from appreciation.