Glossary Definitions for R - S
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A lender’s guarantee that the mortgage rate quoted will not change for a specific period.
This refers to an agent who represents a buyer or seller in a real estate transaction.
Law requiring lenders to give borrowers advance notice of closing costs.
Land and everything that is permanently affixed to it.
A realtor is a real estate professional who is a member of the National Association of Realtors.
A written acknowledgment that something of value was received.
This is the right of the person with title to a property to recover it from the debtor in case of a bankruptcy.
The transfer of property back to the owner when a mortgage is fully repaid.
The act of entering documents concerning title to a property into the public records.
Money paid to an agent for entering the sale of a property into the public records.
Refinancing is the repayment of a loan with funds from a new loan secured by the same property as the first loan. The new loan may be from the same or a different lending institution.
Legal process by which the lender forces the sale of a property because the borrower has not met the mortgage terms.
The cancellation of a contract, permitted by law within three days of signing a mortgage not used to purchase a home.
A check that was presented to the financial institution on which it was drawn, was refused payment by that institution and was sent back unpaid.
Mortgage used by the elderly in which the lender makes periodic payments to the borrower using the borrower’s equity in the home.
A line of credit extended to customers who may use it as often as desired up to a certain dollar limit. Items purchased using this line of credit may be paid in full upon receipt of a monthly statement, or they may be paid for in several installments, for which an interest charge is added.
A container in a secure vault that is rented to an individual or organization for the safekeeping of valuables.
Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.
This is the payment of a debt, which satisfies an obligation.
An account maintained by a customer with a depository institution for the purpose of accumulating funds. Funds deposited in a savings account may be withdrawn only by the account owner or a duly authorized agent, or on the owner’s nontransferable order, and the account may be owned by one or more persons. Some accounts require funds to be kept on deposit for a minimum length of time, while others permit unlimited access to funds. Earnings are in the form of interest for deposit type accounts.
A loan secured by funds on deposit in a savings account, normally maintained at the lending institution. Funds in the savings account equal to the amount of outstanding principal of the loan may not be withdrawn.
A loan using a home’s equity as collateral and which is subordinate to the original mortgage (i.e., the first mortgage has priority before all others.)
The market into which primary mortgage lenders sell the mortgages they make to obtain funds to originate new loans. It includes investors like Fannie Mae and Freddie Mac.
A loan for which the borrower pledges collateral that will be forfeited to the lender if the borrower fails to repay the loan.
This booklet provides an overview of the lending process, given to consumers after completing loan application.
This is the computation of costs payable at closing, which determines the seller’s net proceeds and the buyer’s net payment.
Loan in which the borrower is given a below-market interest rate, and the lender receives a portion of the future appreciation of the property value.
A signature card is a form signed by a depositor upon opening an account at a financial institution. The card establishes the type of account ownership and sets forth the account terms and the obligations of the customer and the institution. Signature cards are used by companies for subsequent identification of the customer.
Interest that is calculated on the outstanding principal balance and not on any interest previously earned.
A written record prepared by a financial institution, usually once a month, listing all transactions for an account, including deposits, withdrawals, checks, electronic transfers, fees and other charges and interest credited or earned.
A stop payment order is by a customer instructing a financial institution to refuse payment when presented with a specific draft or check written by the customer. Stop payment orders cannot be performed on debit card transactions.
Alternative financing option for low- and moderate-income households that also includes a down payment and a first mortgage, with funds for the second mortgage provided by city, county, or state housing agencies, foundations, or nonprofit corporations. Payment on the second mortgage is often deferred and carries low interest rates (if any). Part of the debt may be forgiven for each year the family remains in the home.
An additional charge imposed for a specific service, product or purpose.
A survey is a measurement of land, prepared by a licensed surveyor, showing a property’s boundaries, elevations, improvements and relationship to surrounding tracts.
Value added to a property by improvements made by the owner.