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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A real estate A form of ownership of real property project in which each unit owner has titleto a unit in a building, an undivided interest in the common areas of the project, andsometimes the exclusive use of certain limited common areas. A condominium generallydefines each unit as a separately owned space to the interior surfaces of the perimeter walls, floors, and ceilings.Confirm Request for
Select to display a confirmation message when you click Exit. Deselectconforming loan
to Exit without displaying a confirmation message.
A mortgage loan for $240,000 or lower.constant payment to principal (plus interest) loan
A loan where the borrower pays a fixed principal amount each period plus the interest accrued for the period. For example $1,000. 00 plus interest per month.construction loan
An interim loan secured by real estate to fund the cost of construction. Draws are made on the construction account as work progresses.Construction No (htm)
Noconstruction only loan
At the end of the construction period the loan is paid in full. A new permanent loan may be originated to repay the loan.Construction Yes (htm)
for construction-only or construction/permanent terms.
The loan for the construction period and the repayment period are made at the same time.Consumer credit
insur. prem (htm)
Enter the fee for consumer credit. You don't need to includeconsumer reporting agency (or bureau)
the premium in the finance charge if it is optional, or if the creditors are
allowed to purchase it from an insurer of their choice.
An organization that prepares reports that are used by lenders to determine a potentialborrower's credit history. The agency obtains data for these reports from a credit repository as well as from other sources.conventional mortgage
A mortgage that is not insured by HUD/FHA or guaranteed by the VA. It usually meets the underwriting guidelines of FNMA or FHLMC. Contrast with government mortgage.convertibility clause
A provision in some adjustable-rate mortgages (ARMs) that allows the borrower to convert the ARM to a fixed-rate loan under certain conditions.cooperative (co-op)
A type of multiple ownership in which the residents of a residential or mixed own shares in a business trust entity that holds title to, and grants them occupancy rights to a single apartment or unit through a proprietary lease or other arrangement.Copies (htm)
Enter theCopy (htm)
number of copies to print.
Click tocost of funds index (COFI)
copy the results from this dialog box.
An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It represents the weighted-average cost of savings, borrowings, andadvances of the 11th District members of the Federal Home Loan Bank of San Francisco. See adjustable-rate mortgage
A clause in a mortgage that obligates or restricts the borrower(s) and that, if violated, can result in foreclosure.Credit card payments
Enter the total of your credit card payments. If you pay off the balance before interest begins to accrue do not include it here.credit insurance - accident & health
Insurance which makes the borrower's payment if (s)he is disabled, or pays the loan balance in full in the event of the borrower's death.credit life insurance - (mortgage life insurance)
A type of insurance often purchased by creditors to pay off the balance of their loan if they die while the loan is outstanding. Under Regulation Z, in order for the premium to be excludable from the Finance Charge, it must be OPTIONAL, or the borrower must be allowed to purchase coverage elsewhere. Credit Insurance calculation method - Gross coverage. Credit Insurance calculation method - Net coverage. Credit life rateCredit life termCredit Life Rate (htm)
EnterCredit Life Term (htm)
the rate for credit life insurance.
EnterCredit Life, A&H insurance
the term for credit life insurance. In most cases, this will be the same as the
term for the loan.
The borrower will be covered by Accident and Health insurance or Credit Life insurance, or both.credit Limit
The maximum amount that an applicant may borrow from a lender.Credit Line
The amount of the credit line requested by the borrower ($ or %). If this number is 1.0 or Credit Line Growth Rate
less it is treated as a percentage. If there is no credit line OR if the credit line is to be calculated, this variable should equal 0.
Used in the Homekeeper reverse mortgage calculation. This value should be entered as a percentage (i.e. 95). The engine will divide it by 100.Credit Periods / Year
The number of crediting periods per year, which is the number of times perCredit Periods per Year
year that interest is credited to the account if daily or continuous
compounding is selected.
The number of crediting periods per year, which is the number of times per year that interest is credited to the account if daily or continuous compounding is selected.credit report
A report to a prospective lender of an individual's credit history prepared by a credit bureau. Information is included regarding outstanding debt, late payments, defaults, or bankruptcies.credit report fee
A fee charged for obtaining a credit report from a credit reporting agency. The fee is includeable in the Finance Charge under Regulation Z, unless it is covered by an application fee which is imposed on all applicants(successful as well as unsuccessful). It also need NOT be included in real estate loans in which case it is covered by a specific exclusion.Credit report fees (htm)
Entercredit reporting agency
the amount charged for obtaining a credit report, which can be included in the
finance charge, except in the case of real estate loans where it is covered by
An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.credit score
A Lender's standardized guidelines taking into account such things as the amount of money owed in relationship to income or the credit limit, the borrower's record of repayment, the length of the relationship and other factors.creditor
A person to whom money is owed.Current INDEX
from some tableCurrent Index (htm)
EnterCurrent Page (htm)
the published interest rate to which the adjustable mortgage rate is tied.
Commonly used indicators include the one-year Treasury Bill, Certificate of
Deposit Index (CODI), London InterBank Offer Rate (LIBOR), and the Cost of
Funds Index (COFI).
to print the page that currently displays on your screen.
Select the desired sample file from the current list of selections. Customer First Name
Enter the customer's first name. This name will appear on the 1/6 Aggregate Escrow Deposit Statement.Customer Last Name
Enter the customer's last name. This name will appear on the 1/6 Aggregate Escrow Deposit Statement.Customer Name (htm)
field that can be used to assign a identifying name to this loan information
for future reference. When saving loan information, you may enter either a
customer name, ID Number, or both.
to display the options dialog box for this document.
Enter theDate of 1st payment (htm)
date of the combined report.
EnterDate of first interest payment
the date of the first regularly scheduled payment. Select to display the number
of days on the Excel spreadsheet.
where the principal and interest are being amortized differently. The left panel entry is the first payment to principal and this entry box asks for the date of the first interest payment.Days (C) (htm)
SelectDays to Maturity
to display the number of days on the Excel spreadsheet.
Enter the number of days to term.Days to Maturity (htm)
the number of days to term.
The total of all of the borrowers monthly payments including the proposed house payment(PITI), divided by the borrowers gross income.deed of trust
The document used in some states instead of a mortgage. There are three parties to the instrument: the borrower, the trustee, and the lender, (or beneficiary). The borrower transfers the legal title for the property to the trustee who holds the property in trust assecurity for the payment of the debt to the lender or beneficiary.default
Failure to make payments called for on a timely basis, or to comply with other requirements or covenants on a loan,. In the event of default, the governing instrument may give the lender the right to accelerate payments, take possession and receive rents, and startforeclosure.Default for QAPR
Name the drive and folder where you want QAPR files to be saved. Default location for
EXAMPLE files (htm)
Name the drive and folder where you want stored example filesDefault location for
EXCEL files (htm)
to be saved.
Name the drive and folder where you want Excel output files toDefault location for
STUDY files (htm)
Name the drive and folder where you want loan (study) files todefault/repo insurance
Insurance insuring the lender against the borrower's default and/or the costs ofrepossessing the collateral. This insurance premium must always be included in the finance charge under Regulation Z.Default/repo
Enter the insurance premium. This insurance protects the lenderDeferred
against possible default and/or costs of repossessing the collateral and is
always included in the finance charge.
Check this box to enter deferred deposits/withdrawals.Deferred (Deposits) (htm)
this box to enter deferred deposits.
Check this box to enter deferred withdrawal amounts. Delete (htm)
delete the selected example.
Failure to make loan payments when due.Deposit Amount
The amount of the regular deposit.Deposit Amount (htm)
amount of the regular deposit.
Check this box to enter deposit amounts.Deposits (htm)
CheckDeposits Per Year
this box to enter deposit amounts.
The number of deposit periods per year if the account includes regular deposits.Deposits Per Year (htm)
number of deposit periods per year if the account includes regular deposits.
Enter the password given to you by Math Corporation. Developer Preview (htm)
Thisdiffering frequency loan
screen displays the internal code information for the loan application and the
You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.
A loan on which payments to principal and interest are paid at different frequencies. For example a loan could call for principal payments to be paid annually and interest payments to be paid monthly.Differing Frequency
Select if principal and interest payments will be made at the sameDiffering Frequency
Select if principal and interest payments will be made at differentDisclosed APR (htm)
EnterDisclosed Finance Charge
the annual percentage rate (APR) as disclosed for this loan.
Enter the finance charges as disclosed for this loan.disclosures - combined
Select to produce a disclosure statement that includes both the single level loan and the construction loan terms.disclosures - separate
Select to produce individual disclosure statements for the single level loan and the construction loan terms.Disclosures Combined (htm)
SelectDisclosures Separate (htm)
to produce a disclosure statement that combines the construction and permanent
Selectdiscount interest discount ( or re-discount) rate
to produce individual disclosure statements for the construction and permanent
The rate at which Banks borrow from the Federal Reserve Bank.Discount Rate Periods
The number of payments the initial discount rate is in effect.discounted rate
A lower or "teaser" rate on a variable rate or adjustable rate mortgage for an early period inthe life of the loan. After this period is over the rate may rise.Display "What's this" help
If you feel you don't need to see the "what's this" help buttons (the little question mark icons) you can turn them off on all pages by unchecking this box.Display "What's this" help
If you feel you don't need to see the "what's this" help buttons (the little question mark icons) you can turn them off on all pages by unchecking this box.Display Detail
Select to display the detailed amortization schedule. Display Input Terms (htm)
DisplayDisplay Options: QAPR
Combined Report (htm)
all of the loan terms above the amortization schedule.
Enter the values for the QAPR Combined Report. Display Options:
Select the display options for the amortization schedule. Display Options:
Export to Excel (htm)
Required fields are automatically included.
Select the display options when exporting a loan to Excel. Display year end
Choose whether non-display columns should be hidden or removed from the
resulting Excel file.
Select to display year end totals on the report. Document (htm)
Click toDocumentation (htm)
select from the list of documents available for this loan application.
screen displays the same information as the Truth In Lending Statement, but in
a slightly different format. Information includes the annual percentage rate
(APR), total finance charge, the amount financed, the total amount (including
principal and interest) that will be repaid by maturity, and the payment
schedule, including the total number of payments, payment amount, and payment
You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.
Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed.Down Payment
The amount of money you intend to spend on a down payment. Typically 20% of the loan.Draw Interest rate
Enter the interest rate which will be charged during the period when draws are being made on this loan. Interest Only the interest is paid during this period.Draw Note Loan Screen
Enter the terms for a draw note, or a loan with multiple disbursements. Youdraw notes
must enter the interest rate, periods per year, term, loan amount, prepaids,
advance date, and date of first payment for each disbursement or error messages
Click the Options and Variations button on the toolbar to
enter any variations.
A loan arrangement where the proceeds are drawn in several stages.Draw P/Y
Enter the number of periods per year during the draw period. Interest only is paid during this period with the repayment occuring after the draw period.
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