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.
Or, Click on a letter below
Enter yournegative 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
Enter the maximum amount of the total loan value that the borrower can owe,net effective income
if interest rates fluctuate to a point where the borrower's minimum payment
doesn't cover the interest due.
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.New Loan (icon) (htm)
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.
ClickNew Savings (htm)
to create a new study, or loan application.
ClickNext Month Button (htm)
to create a new study file, or savings record.
JumpNext Page (htm)
ahead one month.
ClickNext Year Button (htm)
to display the next page of the results.
JumpNon-Borrower Spouse 1 Birthdate
ahead one year.
The birthdate of the first non-borrowing spouse.Non-Borrower Spouse 2 Birthdate
The birthdate of the second non-borrowing spouse.Non-display columns -
Select to hide columns in the Excel spreadsheet that aren'tNon-display columns -
selected. In Excel, you can choose to display these columns.
Select to delete columns in the Excel spreadsheet that aren'tnon-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
Enter the number of interest periods in the account. For example,Number of Decimals for Accruals
if you have monthly compounding and the account is 18 months long, this equals
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 calculationsNumber of months of
should use when rounding. The minimum value is 5. This value should reflect
your current practices.
Enter the number of advance months for which you want to collectodd first period Odd interest adj. (htm)
payments for the escrow item.
Displaysodd interest adjustment
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. Amortize - adj final pmt
adds the interest payment to the final loan payment. Irregular 1st Pmt adds the interest payment to the first payment.
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)
AcceptsOpen Savings (htm)
the selected or edited entries.
ClickOpen Study (icon) (htm)
to open a previously saved study file, or savings record.
Clickoptions and variations
to open a previously saved study, or loan application.
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
Enter the appropriate options and variations for the loan beingOptions and Variations
Screen dd (htm)
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.
Enter the appropriate options and variations for the type ofOptions and
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.
Displays the options and variations available to the selectedOptions and
Variations dd icon (htm)
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.
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.
Options, RoundingOriginal (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)
EnterOther - amount (htm)
the amount you charge to the borrower for applying for a new loan (usually 1%,
or one point, of the total loan amount).
EnterOther - explain (htm)
the amount for any other fees that you charge the borrower.
EnterOther Cash Out
an explanation of the Other fee that you are charging the borrower.
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.Other Paid Upfront PMI
Values: 1 = paid by other party, 0 = paid by borrower
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)
EnterPayment Adjustment Periods
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 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)
DisplaysPayment Amount (QS) (htm)
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.
this field empty to solve for the Payment Amount, when you have entered
something for the Term and Loan Amount.
The amount the payment can increase (or decrease) at each payment change date. Entered as a percentage or dollar amount.Payment Cap $ (htm)
EnterPayment Cap % (htm)
the maximum dollar amount to which the payment can increase for the life of the
Enterpayment change date
the maximum percentage to which the payment can increase for the life of the
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)
SelectPayment Discount Rate
to display a payment due date column in the schedule.
The initial discount rate for a Payment Option ARM.Payment No. (A) (htm)
SelectPayment Option ARM
to display the payment number in the Excel spreadsheet.
Payment Option ARM Loan - Interest Only PhasePayment Option ARM
Payment Option ARM Loan - No Interest Only PhasePayment Periods per
year for Draw Period (htm)
Enter the number of payments per year (interest only)Payments due exact
made during the draw period.
Select when payments are due on the same day of every period. Payments due period
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)
Enterperiodic payment cap
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
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
alksdfjPeriodic 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.Periods per year (htm)
Do not use 24 for bi-weekly or 52 for weekly (accelerated loans).
ThePeriods per year (QS)
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).
This is a required field for the Quick Solver. Enter 12 for monthly and soPeriods 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
The periods per year for the construction portion of the loanpersonal property
Any property that is not real property.Phone Number (htm)
your telephone number, including area code.
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)
SelectPlus Interest Loan
to calculate a loan where payments include a fixed principal amount plus
accrued interest for the period.
Enter the terms for a plus interest loan (where payments include aPMI
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.
Private mortgage insurancePMI - 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 $1,500Portion financed $ (htm)
EnterPortion financed % (htm)
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.
EnterPortion of Upfront Mortgage Insurance Premium Financed
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 percentage of the upfront mortgage insurance premium that is financed.Portrait (htm)
Selectpower of attorney
to set the print orientation as portrait, typically interpreted as
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.
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