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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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.


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.


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.


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.


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).


Other - amount (htm)
Enter
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.


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

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)
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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.


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.


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.


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.


Payment Cap % (htm)
Enter
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.


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.


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.


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
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
The number of payments per year.

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.


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).

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).


Periods per year (QS) (htm)
This is a required field for the Quick Solver. Enter 12 for monthly and so
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.


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.


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.


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.


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.


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. "


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.

Premium (K) (htm)
Select
to display the premium in the results.


Premium rate
Enter the VA mortgage insurance premium rate.

prepaid basis
Allow the basis used to calculate prepaid interest to differ from the basis used for the balance of the loan (the accrual basis). This can be selected using the Check box under System Defaults button on the tool bar. If this is left unchecked prepaid basis is always the same as accrual basis.

Prepaid Basis (htm)
Select
the accrual basis for any prepaid interest.


prepaid expenses
Expenses such as taxes, insurance and assessments which are paid in advance of their duedate and which must be paid by the buyer on a prorated basis at closing.

prepaid interest
That amount of money collected at closing to cover the interest for the loan from the settlement date to the end of the month.

Prepaid Interest Places Rounding
Purpose — Allows user to round the per diem interest amount in the prepaid interest to a designated number of decimal places.

Prepaids (DRAW) (htm)
Enter
any prepaid finance charges for the draw portion of the loan.


Prepaids (htm)
Enter
the amount of the fees and charges to be added to the loan, as a dollar amount.


Prepaids (QAPR) (htm)
Enter
the amount of the Prepaid Finance Charges disclosed for this loan.


prepayment
Payment of a loan before its maturity.

prepayment penalty -
A charge that a borrower may be required to pay if a loan is paid in full or large part in advance of the regular schedule.

Present Value
Displays the present value of the account.

Present Value (htm)
Displays
the present value of the account.


Preview Output (icon) (htm)
Click to preview the desired application results on your screen.


Previous MI Credit
Previous MI Credit

Previous Month Button (htm)
Click to display the previous month.


Previous Page (htm)
Click
to display the previous page of the results.


Previous Year Button (htm)
Click
to display the previous year.


Price of Home
Enter the amount you would pay for the house in this comparison.

Primary Borrower Birthdate
The primary borrower’s birthdate.

prime rate
The interest rate that banks charge to their preferred customers.

Principal (E) (htm)
Select
to display the remaining principal for all payments in the Excel spreadsheet.


principal or principal balance
The outstanding balance or amount of debt.

Principal P/Y
In a multiple payment stream loan this is the number of PRINCIPAL periods per year for payment stream.

Principal Payment Amt. (htm)
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Principal payments per year (htm)
In a plus interest loan, this is the number of principal payments
per year. In all other loan types, this is the number of payments (principal
and interest) per year.


Principal portion of pmt (G) (htm)
Select to display the principal portion of the payment in the
amortization schedule.


Principal term (htm)
The
total number of payments for this stream. For annual payments, set this field
to the number of years, according to the Base Terms entered above, and enter 1
in the Prin PY field.


Principal Term (M5) (htm)
In
a plus interest loan, this is the number of principal payments. In all other
loan types, this is the number of payments of principal and interest. In
balloon loans, where the amortization term and the actual term differ, this is
the amortization term.


principal, interest, taxes, and insurance (PITI)
The four components of a monthly mortgage payment. Taxes and insurance refer to the amounts that are placed in escrow each period for property taxes, mortgage insurance and hazard insurance.

Print
Click this check box, then click the "Request Output" button. The page will be displayed without the web site navigation and graphics. You can then print the page and use your "Back" button to return to eDDMath.


More glossary items are available....
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