The Assumption of Mortgage involves a buyer taking over the seller's mortgage, becoming personally liable for the debt. This is typically part of a real estate transaction and distinguishes itself by making the purchaser directly responsible to the lender, unlike a 'subject to' mortgage.
A comprehensive guide to understanding balloon payments, including types, examples, historical context, and related financial terms.
A comprehensive guide to understanding balloon payments in finance, their structure, benefits, drawbacks, and implications.
A comprehensive explanation of biweekly loans, a type of mortgage that requires principal and interest payments at two-week intervals, accelerating the loan amortization process.
A detailed exploration of blanket mortgages, covering their definition, types, uses, special considerations, examples, historical context, and comparison with other mortgage types.
Explore what a Budget Mortgage is, its components, advantages, and how it differs from other types of mortgages. Learn about the practical implications, historical context, and related financial terminology.
Discover the essence of Building and Loan Associations, their historical context, functions, and their role as a type of Savings and Loan Association.
Understanding the concept of buying down an interest rate, its mechanisms, applications, and implications in mortgage and loan agreements.
Learn about the Certificate of Reasonable Value (CRV), a document issued by the Veterans Administration based on an approved appraisal, establishing the maximum VA mortgage loan principal.
A closed-end mortgage is a mortgage-bond issue accompanied by an indenture that prohibits repayment before maturity and the repledging of the same collateral without the permission of the bondholders.
A Commitment Letter is an official notification from a lender to a borrower indicating that the loan application has been approved and outlining the terms of the prospective loan.
A Conforming Loan is a residential mortgage loan eligible for purchase by FNMA or FHLMC, offering lower interest rates and more favorable terms than nonconforming loans, with dollar limits adjusted annually.
Comprehensive guide to understanding the concept of Contract Price in Installment Sales for tax purposes, including its definition, calculation, historical context, and significance.
A detailed description of a conventional mortgage, including its definition, types, special considerations, examples, historical context, applicability, comparisons, related terms, frequently asked questions, and references.
Credit requirements are standards established by creditors that must be satisfied by potential debtors in order for credit to be given. These requirements typically reflect the applicant's ability to repay the loan or make payments for goods or services acquired.
A comprehensive guide to understanding Deed in Lieu of Foreclosure, its process, benefits, drawbacks, and legal considerations.
A detailed examination of Direct-Reduction Mortgages, which require payments that cover both interest and principal, ensuring loan amortization over the loan's term.
A detailed exploration of the Due-On-Sale Clause, which mandates that a mortgage loan is due upon the sale or transfer of the property, including its implications, exceptions, and related concepts.
Equity buildup refers to the gradual increase in an owner's equity in mortgaged property caused by the amortization of loan principal.
The right of a mortgagor to save their property from foreclosure by paying all debts, costs, and interest after a default.
A comprehensive overview of Fannie Mae, also known as the Federal National Mortgage Association, including its history, functions, and impact on the housing market.
An in-depth look at Farmer Mac (Federal Agricultural Mortgage Corporation), its functions, history, and impact on the agricultural mortgage market.
The Federal National Mortgage Association, known as Fannie Mae, is a publicly owned Government-Sponsored Enterprise (GSE) chartered in 1938 to purchase mortgages from lenders and resell them to investors.
In the world of real estate and finance, First Lien Debt refers to the debt recorded first against a property, making it the primary claim in the event of default. This is a critical concept for lenders and borrowers alike.
A comprehensive overview of the First Mortgage, including its role, types, legal considerations, historical context, and comparison with other types of mortgages.
The Federal National Mortgage Association, commonly known as Fannie Mae, facilitates liquidity, stability, and affordability in the U.S. housing market by ensuring that lenders have sufficient funds to lend to homebuyers.
Foreclosure is the legal process by which a lender or creditor can seize and sell a property used as collateral to satisfy an unpaid debt. This process involves terminating all rights of the mortgagor or grantee in the property.
Freddie Mac, formally known as the Federal Home Loan Mortgage Corporation, is a government-sponsored entity that plays a crucial role in the American mortgage market.
Ginnie Mae is a nickname for the Government National Mortgage Association, which guarantees mortgage-based securities. Learn about its role, types of securities, historical context, and more.
An in-depth look at Government-Sponsored Enterprises (GSEs), including their definition, characteristics, historical context, and examples such as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC).
A Growing-Equity Mortgage (GEM) is a type of mortgage loan where the payment increases annually, and the additional payment is applied towards the principal, significantly reducing the loan's maturity period.
Comprehensive coverage on Government-Sponsored Enterprises (GSEs) such as FNMA (Fannie Mae) and FHLMC (Freddie Mac), their functions, history, and roles in the financial and real estate markets.
Understand the concept of Guaranteed Mortgage, its types, features, historical context, and relevance in modern finance.
A comprehensive guide on Home Equity Conversion, detailing the process of liquidating all or a portion of the equity in one's home, including related concepts such as Home Equity Loans and Reverse Annuity Mortgages.
A home loan allows you to purchase real estate property by borrowing money from a lender, which is secured against the property itself.
An in-depth look into Homeowner's Equity Accounts, examining their structure, benefits, and implications within the financial landscape.
An in-depth look at Hybrid Adjustable-Rate Mortgages (ARMs), which blend fixed interest rates with periodic adjustments to help borrowers in financing their home purchases.
An in-depth exploration of imputed interest in mortgage transactions, its tax implications, calculations, and related terms.
Understanding the concept of installment in general terms and its specific application in finance including how it works with debts, mortgages, and revolving credit.
A comprehensive exploration of leasehold mortgages, their legal framework, applications, and interactions with other liens on the property.
A level-payment mortgage entails making uniform payments every month or other designated period, covering principal and interest, ensuring full amortization by the end of the loan term.
A comprehensive overview of Liar Loans, also known as No-Documentation Loans, including their implications, historical context, and related terms.
An in-depth look at loan origination fees, their purpose, calculation, impact on borrowers, and their relationship with points.
An exploration of the locked-in interest rate, a commitment by lenders to offer a fixed rate at the time of the loan application, including its qualifications, contingencies, and common practices.
A comprehensive guide to the Loan-to-Value Ratio, its significance in finance, how it is calculated, and its applications.
A comprehensive guide to Mortgage Assumption, detailing what it is, how it works, its advantages and disadvantages, types, historical context, applicability, and related terms.
Mortgage bonds are tax-exempt securities issued by municipal and state authorities to provide low-interest-rate mortgage loans to qualified individuals, primarily first-time home buyers with moderate income.
A comprehensive look at Mortgage Brokers, their role in facilitating loans, the differences between brokers and bankers, and important considerations for borrowers.
A detailed overview of Mortgage Commitment, its types, special considerations, examples, historical context, applicability, comparisons, related terms, and frequently asked questions.
A detailed exploration of the role and functions of a mortgage correspondent, their responsibilities, historical context, comparison with mortgage bankers and brokers, and additional related terms.
Detailed analysis of mortgage debt, its implications, types, and considerations in real estate and finance.
Explanation of the mortgage discount, how it is applied, its benefits, and comparisons with related terms such as discount points.
A comprehensive guide to Mortgage Insurance Policy, including various types, key considerations, historical context, applicability, comparisons, related terms, FAQs, and more.
A comprehensive guide to the Mortgage Interest Deduction, its benefits, eligibility criteria, and impact on taxpayers.
An in-depth guide to understanding mortgage life insurance, its benefits, types, considerations, examples, and frequently asked questions.
An in-depth look into mortgage modification, its legislative background, and U.S. Treasury Department initiatives designed to help lenders avoid foreclosure.
A comprehensive guide to understanding Mortgage Notes, their components, types, and significance in real estate financing.
Comprehensive insight into Mortgage Relief, the process of acquiring freedom from mortgage debt, related tax implications, and significant considerations.
Comprehensive Explanation of Mortgage Servicing, Including Collection of Payments, Principal and Interest Management, Escrow Services, and Handling Defaults.
A mortgagor is an individual or entity that pledges property as collateral to secure a loan. Understanding the role of the mortgagor is crucial in real estate, finance, and legal transactions.
In-depth explanation of negative amortization, its functioning, implications, and impact on loans. Explore different scenarios, historical context, comparisons, and frequently asked questions.
A no-documentation loan, often referred to as a 'no doc' loan, is a type of mortgage for which borrowers are not required to provide proof of income, employment, or assets, making it distinct from traditional loan products.
A comprehensive guide to Nonconforming Loans, including their defining characteristics, interest rates, and relationship to Jumbo Mortgages and No-Documentation Loans.
A nondisturbance clause is a provision in mortgage or sales contracts that ensures the continuation of leases or guarantees that mineral rights exploration does not interfere with surface development. Essential for the stability of income-producing properties and surface land rights.
An open mortgage is a type of mortgage that has matured or is overdue, making the property eligible for foreclosure at any time. This detailed entry explores its definition, types, considerations, examples, historical context, and related terms.
An Option Adjustable-Rate Mortgage (ARM) allows borrowers to choose among several payment methods, including fully amortizing, interest-only, and minimum payments that might result in negative amortization, catering to those with unpredictable incomes or expenses.
An in-depth exploration of package mortgages, where both personal property and real property serve as collateral to increase the principal amount loaned.
Understanding the Partial Release Provision in Mortgages: Definition, Examples, and Application.
A Participation Loan is a financial arrangement where multiple lenders collaborate to provide a single loan, typically coordinated and serviced by a lead bank or lead lender.
A comprehensive understanding of payables, focusing on accounts, rates, mortgages owed by businesses or individuals, and their categorization as current liabilities.
The Payment Adjustment Date is the specific day when the interest rate on an Adjustable-Rate Mortgage (ARM) can be adjusted, impacting the monthly mortgage payments.
A comprehensive guide to understanding piggyback loans, their structure, applications, benefits, types, and special considerations.
An in-depth exploration of PITI, the primary components of monthly mortgage payments, including definitions, examples, and their significance in real estate and finance.
A comprehensive guide to understanding the PITI payment structure required by amortizing loans, including details on principal, interest, escrow deposits, and insurance.
An in-depth look into Private Mortgage Insurance (PMI), its purpose, applications, and impact on borrowers and lenders in the real estate market.
A clause often inserted in mortgages or deeds of trust that grants the lender the right to sell the property upon certain default without court authority.
Pre-Approval is a lender's commitment to provide a loan to a borrower based on preliminary evaluation. It signifies that a borrower is conditionally approved to receive financing.
Prepaid interest refers to interest paid in advance of the time it is earned, with specific considerations regarding its tax-deductibility.
A detailed examination of a prepayment clause in a bond or mortgage, outlining its significance, penalties, and related features.
A prepayment penalty is a fee paid by a borrower for the privilege of retiring a loan early. It is not a tax-deductible interest expense.
Estimate the most expensive home a buyer can afford based on the buyer's income and available liquid assets. Prequalification does not promise any specific financing or obligate the buyer to accept it.
An essential overview of Private Mortgage Insurance (PMI), its features, purpose, types, and implications in the real estate and financial sectors.
Qualified Residence Interest refers to the interest on a home mortgage, which may be deductible as an itemized deduction. This includes interest on acquisition indebtedness and home equity loans.
Detailed insights into RESPA regulations that guide how mortgage lenders must treat applicants of federally related real estate loans on property with one to four dwelling units, ensuring transparency and borrower awareness.
Reconveyance is a legal transaction where a lender transfers the property title back to the borrower after the mortgage debt has been fully paid.
Comprehensive coverage of the concept of 'redeem' in various contexts including finance, mortgages, and general usage, along with examples and historical context.
Redemption is a multifaceted concept involving the regaining of possession by payment, typically found in contexts such as mortgages, tax sales, corporate stock purchases, and marketing incentives.
A document in which the mortgagee (lender) acknowledges the sum due on a mortgage loan. It is used when mortgaged property is sold and the buyer assumes the debt.
A comprehensive explanation of the term 'Release' across various domains including General Use, Real Estate, and Computers.
A Release Clause in a mortgage that allows the property owner to pay off a portion of the mortgage indebtedness, thereby freeing part of the property from the mortgage lien.
A detailed overview of Real Estate Mortgage Investment Conduits (REMICs), their structure, function, applications, and regulations in the financial and real estate industries.
The right to recover property transferred by a mortgage or other lien by paying off the debt either before or soon after foreclosure, also called equity of redemption.
A detailed explanation of Rollover Loans, a type of mortgage loan commonly used in Canada, that blends long-term amortization with short-term adjustable interest rates.
An instrument for recording and acknowledging the final payment of a mortgage loan, confirming that the lender acknowledges the debt has been satisfied.
Institutions primarily providing loans for purchasing and building homes, also known as building and loan associations, now offering various loans.
A seasoned loan refers to a loan bond or mortgage on which several payments have been collected. It is generally easier to sell a seasoned mortgage compared to a new one that has not yet accumulated a payment history.
An Overview of Seller Financing, Its Types, Implementation, and Benefits
Exploring the concept of Senior Mortgages, their features, implications, and distinctions from other mortgage types like first and second mortgages.
An in-depth look at the concept of servicing including its general application in equipment maintenance and its specialized role in financial loan management.
Understanding settlement cost, also known as closing cost, including its types, examples, and significance in real estate transactions.
