Mortgage terms and definitions for
home buyers, home sellers, and real estate consumers. Use
the links below to find the word you're looking for.
Ratio (DTI) -
The ratio of aggregate monthly debt to aggregate monthly
A legal document which affects the transfer of ownership
of real estate from the seller to the buyer.
of Trust -
Synonymous to a mortgage. A deed of trust or mortgage is
obtained, depending on the state in which the borrower will
The failure to make payments on a loan.
Late- or non-payments of principal, interest, taxes, or
A lump sum given in advance as security. A deposit is always
paid of a larger amount to be paid in the future. In mortgage
and real estate terms, this is called the "earnest money
In real estate and mortgage terms, the decline in the property
Difference between the face amount of a note or mortgage
and the price at which the instrument is sold in the secondary
A term used in government subsidized loans, such as FHA
and VA loans. Refers to any "points" (one percent of the
loan amount) paid in addition to the one percent loan origination
Money paid by a buyer from his own funds, as opposed to
that portion of the purchase price which is financed.