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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FHA
A loan insured by the Federal Housing Administration (of HUD).

FHA mortgage
A government-backed mortgage loan supported by the US FHA and the Department of Housing and Urban Development (HUD).

final Inspection
Home inspection made by a lender, VA, FHA or the appraiser after a new home or repairs have been completed.

finance charge
The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee and any other charges paid to the lender and/or broker.

finder's fee
A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower.

Finder's fee (htm)
Enter
the fee paid to someone who brings a borrower to a lender. If this fee is paid
by the borrower, it is always included in the finance charge.


firm commitment
A lender's agreement to make a loan to a specific borrower on a specific property.

First and Last Pages Only (htm)
Select to print only the first and last pages of the report.


First Month to Skip (htm)
Select
the first month to skip from the drop-down list.


first mortgage
A mortgage that is the primary (senior) lien against a property.

First Page (htm)
Click
to display the first page of the results.


First Year Property Charges
The first year property charges (i.e. taxes, insurance, etc.). This variable is Homekeeper specific and has no effect if you are calculating a HECM.

fixed rate loan (or mortgage)
A loan on which the interest rate which stays constant for the entire term of the mortgage.

Fixed rate mortgage
A type of mortgage loan usually with 30 or 15 year loan terms where the interest rate remains constant throughout the life of the loan. The advantages of a fixed rate loan is your own security that the interest rate will not increase. The disadvantage of a fixed rate loan occurs when interest rates substantially decline below the interest rate of your loan.

fixture
Personal property that becomes real property when attached in a permanent manner to realestate.

Flex ARM Loan Type
A Flex ARM Loan combines the features of a Graduated Payment Loan and a Random Rate Loan.

float
Electing to not lock in the interest rate between the time of application and closing.

flood insurance
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. It may not cover personal property.

floor
The rate below which the interest rate of an adjustable rate mortgage may not decline.

foreclosure
The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property atpublic auction with the proceeds of the sale being applied to the mortgage debt.

forfeiture
The loss of money, property, rights, or privileges due to a breach of legal obligation.

From (htm)
Select to
print a range of pages.


fully amortize
Reduce the balance of a loan to zero at term through regular payments of interest and principal.

fully amortized ARM
An adjustable-rate mortgage (ARM) with a monthly payment sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.

fully Indexed Rate
The index plus the margin for an adjustable rate mortgage.

Fully Indexed Rate (htm)
Displays
the borrower's interest rate, calculated by adding the Current Index and the
Margin and rounded by default to the nearest 1/8. Use System Defaults to change
the rounding factor.


funding fee
The fee paid and forwarded to the Veterans Administration to guarantee a VA home loan provided to a Veteran.

Future Value
Displays the future value of the account.

Future Value (htm)
Displays
the future value of the account.


gem
GEM (htm)
Select to
calculate a growing equity mortgage, where the borrower increases payment
amounts over a specified number of years.


GEM Loan Screen (htm)
Enter
the terms for a growing equity mortgage, where the borrower increases payment
amounts over a specified number of years. You must enter the interest rate,
periods per year, term, loan amount, prepaids, advance date, date of first
payment, graduation rate, and graduation period or error messages display.

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


General Entries (htm)
Displays
multiple stream identification number(s). When there are more than two streams,
ZMath® modifies this number automatically according to the first principal
payment date.


good faith estimate
A document provided at application that provides estimates for all charges which a borrower is likely to incur in connection with a loan closing.

Government fees (htm)
Enter
the recording fees for this loan, as charged by the County Recorder's Office to
enter the Deed, Mortgage, or Deed of Trust and, occasionally, additional
documents, requiring public notice.


government National Mortgage Association (GNMA)
A government-owned corporation within the U. S. Department of Housing and UrbanDevelopment (HUD). Created by Congress on September 1, 1968. GNMA performs the samerole as Fannie Mae and Freddie Mac the assumed responsibility for the special assistance loan program formerly administered by Fannie Mae. Popularly known as Ginnie Mae.

gparm
A loan combining a Graduated Payment Mortgage with an Adjustable Rate Mortgage (ARM).

GPARM (htm)
Select to
calculate a mortgage that combines graduated payments with an adjustable rate
mortgage.


GPARM Loan Screen (htm)
Enter
the terms for a graduated payment, adjustable rate mortgage. 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.


GPM
GPM (htm)
Select to
calculate a mortgage which has level payments for one year, at which time they
grow by a specified percentage amount (the graduation rate) for another year.
This continues for a specified number of years (the graduation period). At the
end of any particular year, the payment amount may be adjusted to pay off the
remaining balance over the number of years left to maturity.


GPM Loan Screen (htm)
Enter
the terms for a graduated payment mortgage. 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.


grace Period
A length of time (usually 15 days) after a mortgage payment is due in which the lender will not charge a late penalty or report the payment as late.

graduated payment mortgage
A type of mortgage where the monthly payments start low but increase by a fixed percentage at the end of each year for a specified number of years. At the end of this series of payments, the graduation period, the loan payments are in an amount large enough to to retire the loan at maturity. This means that the payments at the beginning are not sufficient to make the full principal payments and the outstanding balance actually increases.

graduation period
The number of periods (usually years) in a graduated payment loan that the payment will increase (by the graduation rate) until the loan ois recast.

Graduation Period (Years) (htm)
Enter the number of periods that the payment will increase by the
graduation rate before the loan is recast.


graduation rate
The rate per year that the interest rate on a graduated payment loan will increase.

Graduation Rate (htm)
Enter
the amount by which the payments will be increased for the year. For example,
entering 20 will mean that the payments will increase by 20% for each year
during the graduation period.


grantee
The party to whom title to real property is deeded.

grantee
The person to whom an interest in real property is conveyed.

grantor
The person conveying (or deeding) title to real property to another.

gross income
Total income before any expenses are deducted.

gross monthly income
The total amount the borrower earns per month, not counting any taxes or expenses. Often used in calculations to determine whether a borrower qualifies for a particular loan. growing-equity mortgage (GEM)A fixed-rate mortgage that provides for payments which increase by a specified percent at the end of each year for a specified number of years. The increasing monthly payment amounts reduce the balance of the mortgage resulting in its being repaid sooner.

Growth
Check this box to select the deposit/withdrawal growth rate (linear or exponential).

Growth (Deposits) (htm)
Check
this box to select the deposit growth rate (linear or exponential).


Growth (Withdrawals) (htm)
Check
this box to select the withdrawal growth rate (linear or exponential).


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


guaranteed mortgage
A mortgage, the payment of which, is guaranteed by a third party.

guaranty
Amount of money VA will reimburse a lender upon default of a VA mortgage. Also referred to as the amount of entitlement or eligibility.

Hazard Insurance
This is the annual premium for insurance against losses from risks such as fire, wind, hail, flood etc. If you will have homeowners insurance you will want to include that portion of the premium allocable to the real estate. (Exclude that part covering vehicles etc.)

hazard insurance
Insurance against physical damage to property from fire, wind, vandalism, and other hazards.

Header Text (htm)
Enter
the desired header text (up to three lines) for the amortization schedule.


HECM 2013 File dated 9/30/2013
Note: Multiple runs of the calculator may be required based on the results and choices made by the borrower.

HECM File dated 9/30/2013 - 8/3/2014
Note: Multiple runs of the calculator may be required based on the results and choices made by the borrower.

HECM File post 8/4/2014
Note: Multiple runs of the calculator may be required based on the results and choices made by the borrower.

HECM Rates
Select 'Yes' to use Pre- October 1, 2009 rates.

Select 'No' to choose the latest rates.

HECM/FNMA Flag
This flag tells the engine whether it is calculating a HECM or a FNMA HomeKeeper program.

Help (icon) (htm)
Click
to display the ZMath® Help file.


Help (QS) (htm)
Click
to display online Help for the Quick Solver.


Help Button (htm)
Click
to display the online Help topic for the Fees and Charges Worksheet tabs.


holdback
That portion of a loan commitment not funded until some additional requirement such as rental or completion is attained. (2) In construction or interim lending, a percentage of the contractor's draw which is held back.

home equity conversion mortgage (HECM) or reverse annuity loan
A type of mortgage that enables home owners to convert their equity in their homes into cash, usually in the form of monthly payments. The value of the property is the prime consideration for the lender since the borrower may have reduced income due to retirement etc. The loan is typically repaid after borrower no longer occupies the property or the equity is depleted.

Home Value
The value of the home at closing.

homekeeperSM
Fannie Mae's adjustable-rate conventional reverse mortgage, which allows older homeowners to borrow against the value of their homes and receive the proceeds according to the payment option they select. The amount available is based on the number of borrowers and their ages and the adjusted property value. Anyone 62 years or older who either owns his or her own home free and clear or has very low mortgage debt is eligible.

homeowner's insurance
An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

housing expense
Principal, interest, real estate taxes and hazard insurance (PITI) and mortgage insurance premiums and/or homeowners association/condo fee, when applicable.

housing ratio
Housing expense/effective gross income. Also called Payment-to-Income Ratio or Front-End Ratio.

HUD
The U. S. Department of Housing and Urban Development, established by the Housing andUrban Development Act of 1965 to supersede the Housing and Home Finance Agency. It is responsible for the implementation and administration of government housing and urban development programs. Housing Ratio

HUD median income
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).

ID Number
Enter the loan identification number. This number will appear on the 1/6 Aggregate Escrow Deposit Statement.

ID Number (htm)
Optional
field that can be used to assign a identifying number to this loan information
for future reference. When saving loan information, you must enter either a
customer name, ID Number, or both.


If declining balance, then average balance (htm)
Select if the declining balance for PMI renewal
calculations should be based on the average balance for the year.


If declining balance, then beginning balance (htm)
Select if the declining balance for PMI renewal
calculations should be based on the beginning balance for the year.


If declining balance, then ending balance (htm)
Select if the declining balance should be based on the
ending balance for the year.


impound
That portion of a mortgagor's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Known as escrows or reserves in some states.

income property
Real estate developed or improved to produce income.

index
A published interest rate not controlled by the lender to which the interest rate on an Adjustable Rate Mortgage (ARM) or GPARM loan is tied. Some commonly used indices include 1YTB One Year Treasury Bill Yield, 3YTB Three Year Treasury Note Yield, 5YTB FiveYear Treasury Note Yield, 10YTB Ten Year Treasury Bond Yield, 30YTB Thirty Year TreasuryBond Yield, 6mTB Six Month Treasury Bill Yield, 6mCD Six Month CD Rate, 6mLIB Six MonthLIBOR, 1LIB One Year LIBOR, Prime Interest Rate. A margin is added to the index to determine the fully indexed rate, or ithat will be charged on the ARM or GPARM for the period.

Index Rate
The value of the interest rate index at the time of origination.

Initial Draw
The amount ($ or %) of any initial draw requested by the borrower. If the number is 1.0 or less, it is treated as a percentage. If there is no initial draw, this variable should equal
0.

initial interest rate
The original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). Sometimes known as "start rate" or "teaser. "

Initial Payment Amount
Initial Payment Amount

Initial Payment Periods
The number of periods before the first payment change.

Initial Rate
Initial Rate

Initial rate periods
some stuff

installment
The regular periodic payment that a borrower agrees to make to a lender.

installment debt
Borrowed money that is repaid in several successive payments(installments).

Insurance No (htm)
Select
if there will be no mortgage insurance or credit life/A&H insurance written
on this loan.


Insurance Rate 1, 2 (htm)
Enter
the appropriate renewal rates for mortgage insurance payments when there is an
up-front premium.


Insurance Yes (htm)
Select
if either mortgage insurance or credit life/A&H insurance will be written
on this loan.


insured mortgage
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI). If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount.

Interest (G) (htm)
Select
to display the interest portion of the payment in the Excel spreadsheet.



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