Glossary

Mortgage Glossary

ADJUSTABLE RATE MORTGAGE (ARM)
A Mortgage which adjusts periodically according to the terms of the Note.

ALTERNATIVE DOCUMENTATION

AMORTIZATION

Amortization Table

ANNUAL PERCENTAGE RATE (A.P.R.)

APPRAISAL

Automated Underwriting

BALLOON LOAN

Basis Points (bps)
One hundredth of a percentage point. Expressed as
0.01%.

Bi-weekly Mortgage

Blended Rate

BUY DOWNS

CAP

Cash-out Refinance

Closer

CLOSING

closingagent

CLOSING COSTS

Closing Statement

CLTV - Combined Loan To Value

Co-Borrower

CONDOMINIUM

CONFORMING LOAN

CONVENTIONAL LOAN

Conversion Option

Co-Signer

COFI (Cost of Funds Index)

Correspondent lender

CREDIT SCORE

Default

DEBT RATIO

Discount Points

EQUITY

ESCROW

Escrow Account

FHA

FEDERAL HOME LOAN MORTGAGE
CORPORATION (FHLMC)

FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA)

FICO Score

Finance
Charge

Floating

forward
commitments

FUNDING FEE

Ginnie Mae

GOOD FAITH ESTIMATE

Hazard
Insurance

Hard Money

HUD

HUD-1

INDEX

index
margin

Jumbo Loan

LIBOR (London
Inter Bank Offered Rate)

LTV

LOAN-TO-VALUE

MARGIN

MORTGAGE

Mortgage

MORTGAGEE

MORTGAGE BROKER

Mortgage
Insurance (MI)

Mortgagee

MORTGAGE INSURANCE PREMIUM (MIP)

MORTGAGOR

Non
Conforming

Note

NOTE RATE

ORIGINATION FEE

Pay Option
ARM’s

PITI

Qualifying
Ratios

POINTS

PREPAIDS

PREPAID INTEREST

Pre-Approval

PRE-QUALIFICATION

Prepaids

Prepaid
Finance Charge

Prepaid
Interest

Prepayment
Penalty

PRIVATE MORTGAGE INSURANCE (PMI)

Rate Lock

Rate/Term
Refinance

Rescind

Reverse
Mortgages

Seller
Contribution

Servicing
(Loan Servicing)

Statement (HUD-1)
Subordinate
Financing
Sub-Prime

T-Bill

Table
funding

Title

TITLE INSURANCE

Treasury
Bills

Truth in
Lending

UNDERWRITING

VA

Warehouse
line (of credit)