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.

*Or, Click on a letter below*

A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |

**Name (htm)**

Enter your

name.

name.

**negative amortization**

An increase in a mortgage balance due to the fact that the payment amount is not adequate to cover the entire principal and interest due. The amount of the shortfall is added to the outstanding balance creating "negative" amortization. Adjustable rate mortgages allow the interest rate to fluctuate and can cause negative amortization.

**Negative Amortization (htm)**

Enter the maximum amount of the total loan value that the borrower can owe,

if interest rates fluctuate to a point where the borrower's minimum payment

doesn't cover the interest due.

if interest rates fluctuate to a point where the borrower's minimum payment

doesn't cover the interest due.

**net effective income**

Gross income less federal income tax.

**Net Proceeds**

This is the number used for the calculation of the Total Annual Loan Cost (TALC) table required by Regulation Z. If this variable is equal to 0, the home_value is used. If the number is greater than one it is treated as a dollar amount. If it is 1 or less, it is used as a percentage and multiplied by the home_value to determine the number. Please note that this variable is only used as a short cut when you are trying to calculate a TALC table without reference to a specific example. If you are calculating a specific example, you should send 0 for this value.

**net worth**

The value of all of a person's assets, minus all liabilities.

**New (htm)**

New.

**New FHA**

The only change that has occurred is an internal change that allows the component to correctly calculate FHA MIP when the new cutoff rules go into effect (all case files with a date of June 3, 2013 and later). These rules were described in HUD Mortgagee Letter 2013-04. For further information, please see HUD’s web site.

To correctly utilize the new cutoff rules, please pass a value of 3 in the variable fha and be sure that the variable ltv is populated with the correct loan-to-value ratio for the transaction being run. The component will calculate the correct term of insurance.

If you’re still running the current FHA, nothing has changed. Run it just as you have in previous versions.

To correctly utilize the new cutoff rules, please pass a value of 3 in the variable fha and be sure that the variable ltv is populated with the correct loan-to-value ratio for the transaction being run. The component will calculate the correct term of insurance.

If you’re still running the current FHA, nothing has changed. Run it just as you have in previous versions.

**New Loan (icon) (htm)**

Click

to create a new study, or loan application.

to create a new study, or loan application.

**New Savings (htm)**

Click

to create a new study file, or savings record.

to create a new study file, or savings record.

**Next Month Button (htm)**

Jump

ahead one month.

ahead one month.

**Next Page (htm)**

Click

to display the next page of the results.

to display the next page of the results.

**Next Year Button (htm)**

Jump

ahead one year.

ahead one year.

**Non-Borrower Spouse 1 Birthdate**

The birthdate of the first non-borrowing spouse.

**Non-Borrower Spouse 2 Birthdate**

The birthdate of the second non-borrowing spouse.

**Non-display columns - Hidden (htm)**

Select to hide columns in the Excel spreadsheet that aren't

selected. In Excel, you can choose to display these columns.

selected. In Excel, you can choose to display these columns.

**Non-display columns - Removed (htm)**

Select to delete columns in the Excel spreadsheet that aren't

selected.

selected.

**non-liquid asset**

An asset that cannot easily be converted into cash.

**note**

A legal document that obligates a borrower to repay a loan. Included terms are: interestrate, amount, maturity and repayment place and repayment method.

**note rate**

The interest rate on a loan.

**notice of default**

A formal written notice to a borrower that a default has occurred and that legal action may be taken.

**Number of Compounding Periods**

Enter the number of interest periods in the account. For example, if you have monthly compounding and the account is 18 months long, this equals 18.

**Number of Compounding Periods (htm)**

Enter the number of interest periods in the account. For example,

if you have monthly compounding and the account is 18 months long, this equals

18.

if you have monthly compounding and the account is 18 months long, this equals

18.

**Number of Decimals for Accruals**

Enter the number of decimal points that accrual calculations should use when rounding. The minimum value is 5. This value should reflect your current practices.

**Number of Decimals for Accruals (htm)**

Enter the number of decimal points that accrual calculations

should use when rounding. The minimum value is 5. This value should reflect

your current practices.

should use when rounding. The minimum value is 5. This value should reflect

your current practices.

**Number of months of cushion (htm)**

Enter the number of advance months for which you want to collect

payments for the escrow item.

payments for the escrow item.

**odd first period**

**Odd interest adj. (htm)**

Displays

the methods for paying off odd interest adjustments.

the methods for paying off odd interest adjustments.

*Amortize*spreads the interest over the total number of payments.*style='mso-bidi-font-style:normal'>Prepaid adds the interest payment to the*

closing costs.

adds the interest payment to the final loan payment.

closing costs.

*Amortize - adj final pmt*adds the interest payment to the final loan payment.

*Irregular 1st Pmt*adds the interest payment to the first payment.**odd interest adjustment**

The amount by which the interest in the odd first period is more or less than a regularperiod must be accounted for in the payment schedule. The methods offered by the ZMath®Engine are: Amortize - Spread the interest ratably over all the payments. Prepaid - The borrower pays the lender (long first period) or the lender pays theborrower (short first payment) in one payment at closing. Amortize-adjust first - The entire amount is charged or credited at the time of thefirst regular payment. Amortize-adjust final - The entire amount is charged or credited at the time of thefinal payment.

**OK Button (htm)**

Accepts

the selected or edited entries.

the selected or edited entries.

**Open Savings (htm)**

Click

to open a previously saved study file, or savings record.

to open a previously saved study file, or savings record.

**Open Study (icon) (htm)**

Click

to open a previously saved study, or loan application.

to open a previously saved study, or loan application.

**options and variations**

The options and variations allowed with each loan type will be displayed when you click onthe choices icon. The combo boxes at the top or the screen represent calculation Options. The radio buttons in the lower part allow choices appropriate to that type. Some choices aren't available because they don't make sense. For example you can't choose skipped payments with a single payment loan, since there aren't any payments to skip.

**Options and Variations Screen (htm)**

Enter the appropriate options and variations for the loan being

calculated. Different loan types display different variations.

You can also enter the interest type, basis, and odd

interest adjustment. The values in these fields default to your User Defaults.

calculated. Different loan types display different variations.

You can also enter the interest type, basis, and odd

interest adjustment. The values in these fields default to your User Defaults.

**Options and Variations Screen dd (htm)**

Enter the appropriate options and variations for the type of

savings scenario being calculated.

Select ‘Deposits’ or ‘Withdrawals’ to indicate regular

deposits or withdrawals amounts and options.

You can also enter the basis and the number of accrual

decimals. The values in these fields default to your User Defaults.

savings scenario being calculated.

Select ‘Deposits’ or ‘Withdrawals’ to indicate regular

deposits or withdrawals amounts and options.

You can also enter the basis and the number of accrual

decimals. The values in these fields default to your User Defaults.

**Options and Variations (htm)**

Displays the options and variations available to the selected

loan type, along with the entry screen. If you don't check this box, you may

still see the options and variations by clicking the Options and Variations

icon on the entry screen toolbar.

loan type, along with the entry screen. If you don't check this box, you may

still see the options and variations by clicking the Options and Variations

icon on the entry screen toolbar.

**Options and Variations dd icon (htm)**

Click to display the options and variations screen. Use

this screen to select options such as basis and number of decimals for accruals

and to select deposits and withdrawals options.

this screen to select options such as basis and number of decimals for accruals

and to select deposits and withdrawals options.

**options, basis**

Options, Rounding

**Original (htm)**

Original.

**Original LTV**

The original LTV is the loan-to-value ratio of the loan at origination. eZMath will use this figure to determine the term of the FHA insurance.

**original principal balance**

The total amount of principal owed on a mortgage before any payments are made.

**origination Fee**

The fee(s) charged by a lender to cover certain processing expenses involved in theevaluation, preparation and submission of a mortgage loan. . Usually a percentage of the amount loaned.

**Origination Fee (htm)**

Enter

the amount you charge to the borrower for applying for a new loan (usually 1%,

or one point, of the total loan amount).

the amount you charge to the borrower for applying for a new loan (usually 1%,

or one point, of the total loan amount).

**Other - amount (htm)**

Enter

the amount for any other fees that you charge the borrower.

the amount for any other fees that you charge the borrower.

**Other - explain (htm)**

Enter

an explanation of the Other fee that you are charging the borrower.

an explanation of the Other fee that you are charging the borrower.

**Other Cash Out**

The amount of any other cash out required by the borrower.

**Other Closing Costs**

The total of any other closing costs besides lender fees.

**Other Paid Prepaid PMI**

Purpose—Allows the user to have the prepaid (escrowed and prepaid) MI renewals paid by a party other than the borrower, thereby removing it from the prepaid finance charges.

Values: 1 = paid by other party, 0 = paid by borrower

Values: 1 = paid by other party, 0 = paid by borrower

**Other Paid Upfront PMI**

Purpose — Allows the user to have the upfront PMI or the funding fee be paid by a party other than the borrower, thereby removing it from the prepaid finance charges.

**Output Type**

Choose the format of the preview page for the deposit engine data.

**owner financing**

An arrangement where which the property seller provides all or part of the financing.

**Owner of loan (htm)**

?

**owner's title policy**

An insurance premium charged by the title company to insure the buyer that the title is free from defects and the seller has merchantable title.

**partial payment**

A payment that is not sufficient to cover the scheduled monthly payment of principal and interest on a loan.

**Payable To**

Enter the name of the institution to which this payment will be made.

**Payable to (htm)**

Enter

the recipient of the escrow item payment. Type the name in the box the first

time you use it and save it if this is a recurring payee.

the recipient of the escrow item payment. Type the name in the box the first

time you use it and save it if this is a recurring payee.

**Payment Adjustment Periods**

The number of periods before subsequent payment changes.

**Payment Amount**

The amount of the periodic payment in a HECM where the line of credit is to be calculated. If this number is entered as 1.0 or less, it is calculated based on a percentage of the principal limit. If there is no periodic payment, this variable should equal 0.

**Payment Amount (htm)**

Displays

the amount the borrower will repay, based on the loan type and variables.

ZMath® determines this figure when you click the Calculate button and displays

it on the documentation screen.

the amount the borrower will repay, based on the loan type and variables.

ZMath® determines this figure when you click the Calculate button and displays

it on the documentation screen.

**Payment Amount (QS) (htm)**

Leave

this field empty to solve for the Payment Amount, when you have entered

something for the Term and Loan Amount.

this field empty to solve for the Payment Amount, when you have entered

something for the Term and Loan Amount.

**Payment Cap**

The amount the payment can increase (or decrease) at each payment change date. Entered as a percentage or dollar amount.

**Payment Cap $ (htm)**

Enter

the maximum dollar amount to which the payment can increase for the life of the

loan.

the maximum dollar amount to which the payment can increase for the life of the

loan.

**Payment Cap % (htm)**

Enter

the maximum percentage to which the payment can increase for the life of the

loan.

the maximum percentage to which the payment can increase for the life of the

loan.

**payment change date**

The date when a new monthly payment amount takes effect on an adjustable-ratemortgage (ARM) or a graduated-payment adjustable-rate mortgage (GPARM). Generally,the payment change date occurs in the month immediately after the adjustment date.

**Payment Date (B) (htm)**

Select

to display a payment due date column in the schedule.

to display a payment due date column in the schedule.

**Payment Discount Rate**

The initial discount rate for a Payment Option ARM.

**Payment No. (A) (htm)**

Select

to display the payment number in the Excel spreadsheet.

to display the payment number in the Excel spreadsheet.

**Payment Option ARM**

Payment Option ARM Loan - Interest Only Phase

**Payment Option ARM**

Payment Option ARM Loan - No Interest Only Phase

**Payment Periods per year for Draw Period (htm)**

Enter the number of payments per year (interest only)

made during the draw period.

made during the draw period.

**Payments due exact day (htm)**

Select when payments are due on the same day of every period.

**Payments due period end (htm)**

Select when payments are due at the end of every period.

**Payments Per Year**

The number of payments per year.

**Payments per Year**

This is the frequency you would like to make payments per year, 12 = monthly, 26 = bi-weekly, 4 = quarterly, 1 = yearly.

**Payments Per Year**

Enter the number of escrow payments per year for this item.

**Payments per Year (htm)**

Enter

the number of times (1, 2, 3, or 4) a year that this item is payable. The

specified number of fields will display, where you can enter the payment

information.

the number of times (1, 2, 3, or 4) a year that this item is payable. The

specified number of fields will display, where you can enter the payment

information.

**periodic payment cap**

A limit on the amount that payments can increase or decrease during any one adjustment period under an adjustable rate mortgage. See cap.

**Periodic rate cap**

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**Periodic Service Fee**

The periodic (generally monthly) service fee. The period is determined by the payment frequency (i.e. payments_per_year)

**Periods per year**

The number of repayment periods for non-accelerated loans. Select 1 for annual; 2 for semi-annual (twice a year), 3 for three periods of four months each; 4 for quarterly (four periods of three months each); 6 for six periods of two months each; 12 for monthly; and 24 for semi-monthly.

Do not use 24 for bi-weekly or 52 for weekly (accelerated loans).

Do not use 24 for bi-weekly or 52 for weekly (accelerated loans).

**Periods per year (htm)**

The

number of repayment periods for non-accelerated loans. Select 1 for annual; 2

for semi-annual (twice a year), 3 for three periods of four months each; 4 for

quarterly (four periods of three months each); 6 for six periods of two months

each; 12 for monthly; and 24 for semi-monthly. Do not use 26 for bi-weekly or

52 for weekly (accelerated loans).

number of repayment periods for non-accelerated loans. Select 1 for annual; 2

for semi-annual (twice a year), 3 for three periods of four months each; 4 for

quarterly (four periods of three months each); 6 for six periods of two months

each; 12 for monthly; and 24 for semi-monthly. Do not use 26 for bi-weekly or

52 for weekly (accelerated loans).

**Periods per year (QS) (htm)**

This is a required field for the Quick Solver. Enter 12 for monthly and so

on.

on.

**Periods per year for loans where principal and interest are being amortized differently.**

This is the number of Interest periods per year. Since you have chosen to amortize the principal and interest differently the payments per year entry box in the left panel applies to the principal and this entry box applies to the interest payments.

**Periods per year (CON) (htm)**

The periods per year for the construction portion of the loan

**personal property**

Any property that is not real property.

**Phone Number (htm)**

Enter

your telephone number, including area code.

your telephone number, including area code.

**PITI**

An acronym for the total monthly payment. Principal, Interest, Taxes and Insurance. This may include mortgage insurance, if required.

**PITI Ratio**

The ratio of principal, interest, tax, and insurance payment to income.

**plus interest loan**

A loan type where a fixed payment of principal is required each period along with the interest accrued during the period. This loan type is sometimes called a constant payment to principal loan(CPP) or straight-line amortization loan. We call it a plus interest loan because of the we say it, that is: I want to pay five hundred dollars a month, plus interest.

**Plus Interest Loan (htm)**

Select

to calculate a loan where payments include a fixed principal amount plus

accrued interest for the period.

to calculate a loan where payments include a fixed principal amount plus

accrued interest for the period.

**Plus Interest Loan Screen (htm)**

Enter the terms for a plus interest loan (where payments include a

fixed principal amount plus accrued interest for the period). You must enter

the interest rate, periods per year, term, loan amount, prepaids, advance date,

date of first payment, and interest terms or error messages display.

Click the Options and Variations button on the toolbar to

enter any variations.

fixed principal amount plus accrued interest for the period). You must enter

the interest rate, periods per year, term, loan amount, prepaids, advance date,

date of first payment, and interest terms or error messages display.

Click the Options and Variations button on the toolbar to

enter any variations.

**PMI**

Private mortgage insurance

**PMI - No up-front payment**

A level Private Mortgage Insurance premium paid along with the principal and interest over the life of the loan.

**PMI - up-front payment**

With Private Mortgage Insurance (PMI) an initial premium can be paid when the loan is originated (up-front) with subsequent monthly payments which are unchanged for one year at a time. If you were to have a single up-front premium covering the entire loan, you could enter the premium and then not enter anything for subsequent periods.

**PMI- Split Premium**

With Private Mortgage Insurance (PMI) an initial premium can be paid when the loan is originated (up-front) with subsequent monthly payments which are unchanged for one year at a time. If you were to have a single up-front premium covering the entire loan, you could enter the premium and then not enter anything for subsequent periods.

**point**

One percent of the loan amount assessed at closing by a lender to increase the yield on the loan. Example; 1. 5 points on a $100,000 mortgage would cost the borrower $1,500

**Portion financed $ (htm)**

Enter

the appropriate dollar amount if any portion of the mortgage insurance premium

for the first year is financed. If you enter a figure in this field, leave the

percent field blank.

the appropriate dollar amount if any portion of the mortgage insurance premium

for the first year is financed. If you enter a figure in this field, leave the

percent field blank.

**Portion financed % (htm)**

Enter

the appropriate percentage if any portion of the mortgage insurance premium for

the first year is financed. If you enter a figure in this field, leave the

dollar amount field blank.

the appropriate percentage if any portion of the mortgage insurance premium for

the first year is financed. If you enter a figure in this field, leave the

dollar amount field blank.

**Portion of Upfront Mortgage Insurance Premium Financed**

The percentage of the upfront mortgage insurance premium that is financed.

**Portrait (htm)**

Select

to set the print orientation as portrait, typically interpreted as

"tall. "

to set the print orientation as portrait, typically interpreted as

"tall. "

**power of attorney**

The legal power conferred on one person to act on another person's behalf. It can grantcomplete authority or can be limited to certain acts and/or certain periods of time.

More glossary items are available....

Please use the index or Click here to view the next set of items.

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