The penalty a borrower must pay when a payment is made a stated number of days (usually 10-15) after the due date.
A lease is a written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may use the real estate for a specified period of time and the amount of rent to be paid.
A tenant's interest in or right to hold possession of a property.
A property description, recognized by law, using a government rectangular survey, metes and bounds, or a plat map to sufficiently locate and identify a property.
Fees paid to the lender to cover costs associated with processing, underwriting and closing of the loan.
A person's debts or financial obligations. Liabilities include long-term and short-term debt, as well as potential losses from legal claims.
Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. See also homeowners insurance.
A legal claim against a property that must be paid off when the property is sold. A lien is created when you borrow money to purchase or refinance a home loan or and with obtain a home equity loan.
lifetime rate cap
For an adjustable-rate mortgage (ARM), a limit on the amount that the
interest rate can increase or decrease over the life of the loan. See cap.
The entire HELOC or
Fixed rate Second mortgage loan amount.
line of credit
An agreement by a lender to extend credit up to a certain amount for a certain time without the need for the borrower to file another application. See home equity line of credit.
A cash asset or an asset that is easily converted into cash.
A sum of borrowed money (principal) that is generally repaid over time with interest.
A lender's agreement to advance money on specified terms after specified conditions are met. See commitment letter.
The process by which a mortgage lender makes a home loan and records a mortgage against the borrower's real property as security for repayment of the loan.
loan-to-value (LTV) ratio
The ratio of the total amount borrowed on a mortgage against a property compared to the appraised value of the property. For example, if you have an $80,000 1st mortgage on a home with an appraised value of $100,000, the LTV is 80% ($80,000 / $100,000 = 80%).
A written agreement in which the lender guarantees a specified loan program interest rate and points if a mortgage goes to closing within a set period of time.
The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in.
Luxury real estate
in any particular region is generally defined as property
worth more than a certain lower limit; for instance, homes worth more than $1
million in the United States are generally classified as Luxury real estate. The
classification also takes into account the presence of surrounding homes,
amenities, views, waterfronts, absence of crime-rate, industrialization or
unwanted commercialization, customizations of the home, and historical or