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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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)
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)

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)
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)
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.

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.

Print (htm)
Click to
print the report, according to the options set in the Print dialog box.

Print (icon) (htm)
to print the current screen.

Print header on 1st page only (htm)
Select to print the header on the first page only of the
amortization schedule.

Print header on all pages (htm)
Select to print the header on all pages of the amortization schedule.

Print page numbers (htm)
to print page numbers on the amortization schedule.

Print Screen (htm)
the print options for the report. You can change the system printer, set its
properties, and control the pages that print.

You can also set the number of copies and print margins.

Printer (htm)
the system printer where you want the results to print.

private mortgage insurance (PMI)
Mortgage insurance supplied by a private mortgage insurance company to protect lenders against loss caused by a mortgagor's default. . It is typically required when the loan-to-value(LTV) ratio is in excess of 80 percent.

Problem Report (htm)
to submit a bug report.

Prompt Unsaved Data (htm)
to display a message if you close a study without saving it first. Deselect to
lose unsaved data without a message.

Properties (htm)
to display and modify the options for the selected printer.

Property Appreciation
The property appreciation rate to use in the mortgage calculation.

Property Insurance premium (htm)
Enter the fee for property insurance. You don't need to include the
premium in the finance charge if it is optional, or if the creditor is allowed
to purchase it from an insurer of their choice.

Property survey (htm)
the amount for the property survey.

Property Taxes
The estimated amount of the yearly property tax you might expect to pay on the property in the comparison.

QAPR Advance date
Enter the date the funds were advanced from the disclosure statement or the note..

QAPR Combined Report Screen (htm)
This screen displays the combined report for the loan application.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.

QAPR Individual (htm)
screen displays the QAPR information only.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.

QAPR Payment amount
Enter the amount of the payments for this payment stream.

QAPR Screen (htm)
the loan number of an existing loan to load the calculated information or enter
the loan terms. Click Calculate to determine the APR for the loan for the
Truth-in-Lending statement.

qualifying ratios
Calculations that are used in determining whether a borrower can qualify for a mortgage. They consist of two separate calculations: Housing expense as a percent of monthly grossincome (front-end ratio), and total debt (PITI plus any other monthly debt payments like caror personal loans and credit card debt) as a percent of income (back-end ratio).

Question (htm)
to ask a question of our Technical Support staff.

Quick APR (htm)
to calculate the annual percentage rate for the specified loan information,
which you can enter or load from a saved study.

Quick Solve (icon) (htm)
to display the Quick Solve dialog box.

Quick Solve Screen (htm)
all fields except for the one you want to calculate and click Solve to display
the missing field value.

random rate loan
A loan type where a different interest rate can be specified for a number of payment periods. This differs from a variable rate loan in that the rates are declared at the beginning of the loan rather than varying with an index during the term of the loan.

Random Rate Loan (htm)
to calculate a random rate loan, which can have up to fifteen different rates.
An annual percentage rate (APR) is calculated, taking into account the various
rates. A random rate loan is not the same as an adjustable or variable rate
loan, because it isn't tied to an index.

Random Rate Loan Screen (htm)
Enter the terms for the random rate loan (where you can enter up to
15 different interest rates for different terms). You must enter the interest
rate, periods per year, term, loan amount, prepaids, advance date, date of
first payment, and number of periods for each rate or error messages display.

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

Rate #1 (htm)
Enter the
monthly rate for this insurance period.

Rate (htm)
Enter the
interest rate for this series of payments.

rate cap
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be. See cap.

Rate for 1st year (htm)
the monthly insurance rate for the first year when collecting an up-front

rate lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time.

Rate Rounding Method
This variable, in conjunction with precision, tells the engine how to round the interest rate. 1 = Down. 2 = Up. 3 = Nearest.

Rate Rounding Precision
This is the precision that the interest rate (index + margin) should be rounded to (i.e. 0.125, 0.25, etc.).

rate-improvement mortgage
A fixed-rate mortgage that includes a provision giving the borrower(s) a one-time option to reduce the interest rate (without refinancing) during the early years of the mortgage term.

RE Appraisal Fee (htm)
the amount of the real estate appraisal fee, which is excluded from finance
charges for mortgages.

Real Estate Settlement Procedures Act (RESPA)
A Federal consumer protection law Federal law which requires the provision of Good FaithEstimates of Closing Costs, prohibits kickbacks for referrals of related services, and standardizes the closing with a required form and format (HUD-1).

real property
Land and its appurtenances, including anything of a permanent nature such as structures,trees, minerals, and the interest, benefits, and inherent rights thereof.

Recast (Years) (htm)
the number of years until the payment must be recalculated for the term of the

The acceptance by the proper government office of a properly executed legal documentsuch as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgageetc. , thereby making it a part of the public record.

refinance transaction
The process of paying off one loan with the proceeds from a new loan using the same property as security.

Reflect Other Buydown Portion
This flag tells the engine whether to use the portion of the buydown paid by a party other than the borrower for the calculation of the Annual Percentage Rate. No, do not reflect it. Yes, reflect it. If Yes is chosen, the buydown is part of the credit agreement. If No is chosen, the buydown is not part of the credit agreement.

Reimbursement Information (htm)
You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.

Remaining (htm)
the difference between the loan term and the number of payments entered for the
negotiated rate(s).

remaining (or outstanding)balance
The amount of principal that has not yet been repaid.

remaining term
The original amortization term minus the number of payments that have been applied.

Renewal Mortgage Insurance Rate
The renewal mortgage insurance rate.

This is the amount of monthly rent you might expect to pay for a house or apartment of the same type and quality as the house you would be buying in this comparison.

Rent Increase
How much do you expect your rent to increase each year on equivalent housing? Typically, your landlord will raise your rent 10% each year.

Renters Insurance
Your monthly premium for insurance covering your personal property (furniture, clothes etc.)while you are renting.

The amount of any required repairs

Report Identifier (htm)
the value by which you will identify this report.

Representing (htm)
the name of the person or company represented by the reviewer.

Reserve PMI
Purpose — Output the amount of the reserve PMI paid by the borrower

reverse annuity mortgage
A mortgage which uses equity in a property to fund periodic payments to the borrower untilthe equity is used up. It is equivalent to an annuity where the equity is the present value which, at a particular rate of interest, funds a stream of payments which will reduce the present value (the equity) to zero at term.

Reviewer Name (htm)
the name of the person reviewing this report.

Right Margin (htm)
the right margin in tenths of an inch, or accept the default.

right of survivorship
In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant. If one owner dies, the undivided estate then passes to the surviving owner(s) in the case of joint tenancy and tenancy by entirety (husband and wife).

You can elect to round up, round down or round to the nearest percent. The usual convention used is round up.

Rounding Method
This variable tells the engine how to round the payment amount. Please note that this will not affect interest only or constant payment to principal loans.

rounding on ARMs (Interest rate)
At an adjustment period on an ARM loan you may want to round the newly calculated rate. ZMath® permits you to select any of the following methods. Round up, round down, roundto the nearest 1/10, Round to the nearest 1/8, Round to the nearest 1/4, round to thenearest 1/2.

A technique in which a seller deeds property to a buyer and the buyer simultaneously leases the property back to the seller.

Same Final Payment Flag
Purpose — Allows the user to designate whether the engine calculates a final payment to zero out the amortization schedule or not.

Values 0 = calculate final payment, 1 = same final payment as previous payment, non-zero final balance in amortization schedule, 2 = same final payment as previous payment, adjust interest amount in final payment to zero balance

Save as Default (icon) (htm)
Click to save the current study, or loan application, as the default
for future studies.

Save Button (htm)
to save modifications.

Save Default Button (htm)
to save the information on the three Worksheet tabs as the default values for
future loans.

Save Savings (htm)
to save the current study file or savings record.

Save Study (icon) (htm)
to save the current study, or loan application.

Savings Calculate Button (htm)
Click to analyze all transaction data, apply the calendar math,
calculate the Regulation DD disclosures, prepare schedules, and produce the

Second home
Commonly known as a vacation home. This home is not rented and is occupied by the owners occasionally.

second mortgage
A mortgage that has a lien position subordinate to the first mortgage.

Secondary Financing
A loan secured by a mortgage or trust deed, which lien is junior to another mortgage or trust deed.

Secondary Market
The buying and selling of mortgage notes between sophisticated investors such as pension funds, commercial banks, savings and loans, and wall street firms.

secured loan
A loan that is backed by the pledge of real or personal property.

Property which will be pledged as collateral for a secured loan.

Select (htm)
Click to
select the highlighted sample file.

Selling Costs Factor
The factor you expect to pay for selling the home. ie. 7.5% would be entered as 7.5

Settlement Cost Guide(HUD)
This booklet gives an overview of the lending process and is required by HUD. It is provided to consumers after the loan application is completed

settlement sheet (or statement)
See HUD-1 statement.

Shared Appreciation
The amount of shared appreciation if there is an agreement in place to share the appreciation with the lender. This should be entered as a percentage decimal (i.e. 0.25 for 25%).

Show Gridlines (htm)
to display gridlines in the amortization schedule.

Show Terms Assumption (htm)
Select to ?. Deselect to ?.

Single Disbursement Only
Use Remaining Net Principal Limit for credit line or payment
Initial Disbursement Only

single payment loan
Any loan which will be paid in a single payment of principal and interest at maturity.

Single Payment Loan (htm)
when the principal and interest are due in one payment at maturity. The default
interest type is simple, but you can elect to use discount interest by
selecting it from Interest type on the Options and Variations screen.

Single Payment Loan Screen (htm)
Enter the terms for the single payment loan (a loan with only one
payment). You must enter the interest rate, loan amount, prepaids, and advance
date. You can choose to enter the maturity date or the number of days to

If necessary, select when the end of month payment is due.

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

Skip Payments No (htm)
if all payments will be made consecutively from the date of first payment until

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