Welcome to our Glossary of Terms.   Here you will find descriptions of terms used throughout our web site and terms common in the industry.

To help you locate a term, enter the first character or two of a term and press the 'Refresh' button. Or, just click on the handy alphabetical index to jump to that section of the glossary.

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# Days in period (C) (htm)
Add
a column to display the number of days in each period.


# months escrowed (htm)
Enter
the number of months of insurance premiums that will be saved in escrow.


# of Months to Skip (htm)
Enter
the number of months in which payments should be skipped.


# of Payment periods before 1st change (htm)
Enter the number of payment periods before the first rate
change in an ARM or GPARM loan.


# of Payments (htm)
Enter
the number of payments at this rate.


# of Payments (QAPR) (htm)
Enter
the number of payments in this payment stream.


# periods between changes (htm)
Enter the number of payment periods between subsequent rate
changes.


% Growth Rate
The growth rate for accounts where the deposits or withdrawals will graduate at a constant rate.

% Negative Amortization (htm)
Enter the maximum PERCENTAGE of the total loan that the
outstanding balance may increase, if interest rates fluctuate to a point where
the borrower's minimum payment doesn't cover the interest due.


Effective Income Tax Rate
The amount of tax you paid on the amount of money you made. The total of Federal,State and local income taxes, divided by taxable income. This is the average rate you paid, as if you were paying the same rate on every dollar you make, not taking into account tax brackets.

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1/6 Aggregate Escrow (htm)
This
screen displays the escrow information entered on the 1/6 Aggregate Escrow
screen. Information includes the escrow item, annual and monthly escrow
amounts, payee, and running balance.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.


1/6 Aggregate Escrow (icon) (htm)
After filling in the loan application fields, click to display the
1/6 Aggregate Escrow screen.


1/6 Aggregate Escrow Screen (htm)
Enter the information for the escrow items, such as mortgage
insurance, including number of months of cushion, escrow item, payee, number of
payments per year, the month due, and the amount.


1st Draw Payment Date (htm)
Enter the first payment date for the draw note.


1st Interest Payment Date (htm)
Enter the date the first interest payment is due.


1st Principal Payment Date (htm)
Enter the date, in mm/dd/yyyy format, when the first payment is due
for this stream. This date determines the dates for the other payments,
according to the values entered in the Prin PY and Prin term fields, for this
stream.

1st scheduled Payment Date
The date on which the first interest payment on the construction loan is scheduled to occur.

abstract of title
The history of the chain of title (all of the documents that transfer title) to a parcel of real property, starting with the earliest existing document and ending with the most recent.

Abstract of title fees (htm)
Enter the amount for producing the title abstract.


Accelerated Bi-Weekly (htm)
Select if payments will be made every fourteen days. (This isn't the same
as semi-monthly payments, which are collected twice a month. )


Accelerated Weekly (htm)
Select
if payments will be made every seven days. (This isn't the same as weekly
payments, which are collected four times a month. )


acceleration clause
A provision in a mortgage that gives the lender the right to demand payment of the balance of the loan immediately, if regular payments are not made as agreed or for breach of other terms of the mortgage.

accident and health calculation method
Gross coverage Net coverage

accident and health insurance
Insures against borrower's inability to make loan payments due to njury or illness. In order for the premium be excluded from the Finance Charge, it must be OPTIONAL (not required), or the consumer must be allowed to purchase the coverage elsewhere.

accident and health rate
n/a

accident and health term
n/a

Accident Rate (htm)
Enter
the rate for accident and health insurance.


Accident Term (htm)
Enter
the term for accident and health insurance. In most cases, this will be the
same as the term for the loan.


Activate Developer (htm)
Click
to activate the developer options, which are available from the final
calculation screen. You will need to contact Math Corporation for the password.


Activate Developer/Developer Activated (htm)
Click Activate Developer to display the
password screen. Click Developer Activated to deactivate the developer mode.


actuarial method
The method of allocating payments between the amount financed and the finance charge, where a payment is applied first to the accumulated finance charge. Any remainder is subtracted from, or any deficiency is added to the unpaid principal balance of the amount financed.

Additional Principal Limit Usage
Additional Principal Limit Usage

additional principal payment
Unscheduled principal payments made to reduce the remaining balance of a loan.

add-on interest
When interest is added to the amount borrowed. For example, a $5,000. 00 loan at a 10% nominal rate for one year would have the $500. 00 interest added to the loan amount. The base loan amount would be $5,500. 00, but the borrower would actually receive $5,000. 00 at closing.

adjustable-rate mortgage (ARM)
also called AMLs(Adjustable Mortgage Loans) or VRMs (Variable rate mortgage). A Mortgage where the interest rate may change over the life of the loan in accordance with movements in an index rate. The terms, adjustment schedule and index that the loan is based upon vary by loan program. To protect the borrower, "caps" often limit the amount of payment adjustment. ARMs are also referred to as

Adjusted Payment Number (htm)
Enter the payment number when adjustments should occur for
reimbursement information.


adjustment date
The date on which the interest rate changes for an adjustable-rate mortgage (ARM).

adjustment interval
For an adjustable rate mortgage, the time between changes in the interest rate charged. The most common adjustment intervals are one, three or five years.

adjustment period
With most ARMs, the interest rate and monthly payment change every year, every three years, or every five years. However, some ARMs have more frequent interest and payment changes. The period between one rate change and the next is called the adjustment period. So, a loan with an adjustment period of one year is called a one-year ARM, and the interest rate can change once every year.

Advance (Note) date (htm)
Enter
the closing date for the loan, when the customer will receive the requested
funds.


Advance (note) date (QAPR) (htm)
The date on which the funds were advanced (disbursed).


affordability analysis
A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that you might expect to pay.

All (htm)
Select to
print all pages.


Allow Different Basis (htm)
Select if you want to use a different accrual method in the odd first
period than you do for the rest of the loan.


amortization
Literally to kill (root: mort) the outstanding balance of a loan by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays both interest and principal with each equal payment.

amortization schedule or table
An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made. It may also show amount due for mortgage insurance or other items

Amortization Schedule Screen (htm)
This screen displays the amortization report for the loan
application. Information includes base terms, dates, Truth In Lending
information, the selected calculation options, and the amortization schedule.
You can modify the amortization schedule results by clicking the Customize
button.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.


amortization term
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of periods (months, quarters ,years etc. ) to maturity. For example, a 30-year monthly payment mortgage would have an amortization term of 360 months.

Amortization Term (htm)
The
total number of payments on which the payment is based.


amortize
To repay a mortgage with regular payments that cover both principal and interest.

Amount (htm)
Enter the
dollar amount of the payment due for this payment period.


Amount Advanced (htm)
Select
to charge interest on only the amounts actually drawn.


Amount Financed
This is the amount of money being loaned to the borrower. The total includes: the principal loan amount, amounts financed by the creditor which are not part of the finance charge, less any prepaid finance charges.

Amount of Payments (htm)
The
amount of each payment in this payment stream.


Annual Mortgage Insurance Accounting
Check this box if the mortgage insurance premium is payable to the agency on an annual basis.

annual mortgagor statement
A report sent to the mortgagor each year. The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year.

annual percentage rate (APR)
The total cost of credit on a yearly basis expressed as a percentage. It takes into account the total cost of the loan including finance charges (origination fee, points, prepaid interest, etc. This calculation is disclosed as part of the disclosure statement which is required by the Federal Truth-in-Lending Act. The statement is required on all consumer loans and is required to be disclosed within three working days of application for residential owner-occupied mortgage loans pursuant to the Real Estate Settlement Procedures Act (RESPA).

annuity
An amount paid at regular intervals from principal and interest provided by a fund set up for the purpose. (the present value).

annuity due
Where the first payment in a stream of payments is made at the beginning of the period and at the beginning of each subsequent period. Leases are often structured this way.

Another Button (htm)
Click
to add another escrow item under 1/6 aggregate escrow, or another rate to a random
rate loan or draw note, or another buydown under buydown terms.


Another buydown period
Enters the input area for another buydown period.

Another Stream Button (htm)
Click to add another payment stream.


application
A form used to apply for a loan and to record pertinent information about a prospective borrower and the proposed security.

Application Fee
The fee charged by the lender to the borrower for accepting a loan application.

application fee
The fee charged by the lender to the borrower for accepting a loan application. If you charge this fee to all applicants, whether or not their application is successful, you don't have to include it in the finance charge. However, if you only charge it to some applicants, you must include it. Application fees can be entered as an exclusion for real estate loans.

Application Fee (1) (htm)
Enter
the application fee for accepting this loan application. If you charge this fee
to all applicants, whether or not their application is successful, you don't
have to enter it here. However, if you only charge it to some applicants, you
must enter it here. Application fees can be entered as an exclusion for real
estate loans.


application Fee (1) Finance charge worksheet (some versions)
Enter the application fee for

appraisal
A written analysis of the estimated value of a property prepared by a qualified appraiser as of a particular date.

appraisal fees
Enter the amount charged to determine the value of the collateral. This figure will be included in the finance charge, except in the case of real estate loans where it may be excluded by specific exemption under RegZ.

Appraisal fees (htm)
Enter
the amount charged to determine the value of the collateral. This figure can be
included in the finance charge, except in the case of real estate loans where
specifically excluded.


appraised value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

Appraised value
For loan-to-value purposes you will enter the lesser of the appraised value or the sales value at the time of the transaction.

Appraised Value (htm)
Enter
the appraised value of the property.


appraiser
A person qualified by education, training, and experience to estimate the value of real property and personal property.

Appreciation
The amount you expect the market value of this property to increase each year.

appreciation
An increase in the value of a property. The opposite of depreciation.

ARM (htm)
Select to
calculate an adjustable rate mortage.


ARM Loan Screen (htm)
Enter
the terms for an adjustable rate mortgage (where the interest rate changes
periodically according to a prescribed index). You must enter the interest
rate, periods per year, term, loan amount, prepaids, advance date, and date of
first payment or error messages display.

Click the Options and Variations button on the toolbar to
enter any variations.


ARM rounding
n/a

ARMS rounding
With an adjustable rate mortgage the rate is a combination of an index to which a margin is added. The result can be an odd number like 9.12975. The system lets you round this to a more convenient number the choices are; round up, round down, round to the nearest 1/10th, round to the nearest 1/8th, round to the nearest 1/4, round to the nearest 1/2, or you can elect to leave the number unrounded.

arrears
In a stream of payments where the payments are made at the end of each period. The opposite of this arrangement is the annuity due where payments are made at the beginning of the period.

assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.

assessment
The process of placing a value on property for the strict purpose of taxation. May also refer to a levy against property for a special purpose, such as a sewer assessment.

assessor
A public official who establishes the value of a property for taxation purposes.

asset
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

assignment
The transfer of title to property from one person to another.

assumable loan
These loans may be passed on from a seller of a home to the buyer. The buyer assumesall outstanding payments.

assumable mortgage
A mortgage that can be taken over ("assumed") by the buyer when a home is sold.

assumption clause
A provision in an assumable mortgage that allows a buyer to assume responsibility for thebalance remaining on a mortgage from the seller.

assumption fee
The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage. Assumption fee

Assumption fee (htm)
Enter
the fee you charge for letting the borrower assume an existing mortgage.


assumption of mortgage
Assumption by a purchaser of liability for payment of an existing mortgage or deed of trust. The seller remains secondarily liable unless specifically released by the lender.

At Beginning of Period
Indicates if the regular deposit occurs at the beginning of the period.

At Beginning of Period (htm)
Indicates if the regular deposit occurs at the beginning of the
period.


At End of Period
Indicates if the regular deposit occurs at the end of the period.

At End of Period (htm)
Indicates
if the regular deposit occurs at the end of the period.


Attorney's title opinion (htm)
Enter the amount charged by the attorney for the title opinion.


Back (icon) (htm)
Click
to display the previous screen.


Balance (H) (htm)
Select
to display the outstanding balance in the Excel spreadsheet.


Balance Type
The amount of yearly maint you expect to pay.


More glossary items are available....
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