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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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

Skip Payments Yes (htm)
if the borrower wants to skip consecutive payments each year (for example, July
and August).

skipped payment loan
A loan which provides for a period each year when payments will be suspended. Forexample a teacher might like to skip the July and August payments each year. You will be asked to specify the first month skipped and the number of consecutive periods which will be skipped.

Solve (htm)
Click to
calculate the missing field value.

special assessments
A special tax imposed on property, individual lots or all property in the immediate area, forroad construction, sidewalks, sewers, street lights, etc.

Standard Annuity
Standard Annuity Reverse Mortgage

Start Date
The start date of the account.

Start Date (htm)
start date of the account.

Start page (htm)
the starting page number for the range of pages you want to print.

Submit Button (htm)
to display the Options and Variations screen, if the checkbox is selected, or
to display the appropriate loan screen, if the Options and Variations checkbox
isn't selected.

Subsequent periods

Subsequently paid finance charges (htm)
Enter the dollar amount of any finance charges which will
be due after the closing of the construction loan, such as re-appraisal fees,
inspection fees, and so on.

sweat equity
Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash.

System Defaults (icon) (htm)
Click to display the System Defaults dialog box.

System Switches Screen (htm)
Set the values for your copy of ZMath by entering the desired values
in the fields. When finished, click Save.

tax rate-effective
The amount of tax you paid on the amount you made (the tax divided by taxable income). This is the average rate you paid, as if you were paying the same rate on every dollar you make, not taking into account tax brackets.

tax rate-marginal
The rate at which the last dollars you earn in any one year are taxed. If your earnings have put you in the 36% tax bracket. Every extra dollar you earn will be taxed at 36% until you reach the next bracket, even though your effective tax rate might be, for example, 25%.

Technical Support Screen (htm)
Request help, submit a wish list, or file a bug report by selecting
the appropriate radio button and entering the description on the Request tab.

Enter your information, including your name, email address,
and telephone number, on the Properties tab.

View any errors when sending the report by selecting the
Error Log tab.

The term (total number of payments) in the mortgage. If this is zero or a line of
credit only calculation, the engine will calculate the term based on the borrowers’ ages.

The total number of periods required to reduce the borrower's debt to zero or to the negotiated balloon. The term is calculated by multiplying the number of periods in a year by the number of years. (Ex. a five year loan calling for monthly payments would have a term of 60 periods).

Term (CON) (htm)
the term (total number of payments) for the construction period.

Term (htm)
Enter the
total number of payments necessary to reduce the borrower's debt to zero or to
the negotiated balloon amount. The term is calculated by multiplying the number
of periods in a year by the number of years. For example, a five year loan with
monthly payments (12 periods per year) would have a term of 60. A 30 year loan
calling for semi-annual payments (2 periods per year) would also have a term of
60. Be sure to enter periods here, not years.

Term (QS) (htm)
this field empty to solve for the Term of the loan, when you have entered
something for the Loan Amount and Payment Amount.

Term (Total # Int. Periods) (htm)
Enter the total number of

Term of Loan (in years)
Over how many years would you like to pay off the loan secured by the house in this comparison.
Typical terms are 15 or 30 years.

third-party origination
A process by which a lender uses another party to completely or partially originate, process,underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.

Through Year # (htm)
the year(s) for which the corresponding insurance rate applies.

A legal document establishing a person's right to or ownership of real property.

title company
A company that specializes in examining and insuring titles to real estate.

title insurance
Insurance against loss resulting from defects of title. It protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to either the mortgagor, as an "owner's title policy" or to the mortgagee, as a"mortgagee's title policy. "

Title insurance premium (htm)
Enter the amount of the title insurance premium, which protects the
borrower against losses due to title defects for a specific piece of property.

title search
An examination of city, town, or county records to determine the legal ownership of real estate and that there are no liens or other claims against it. Convenants of record which would adversely affect the marketability or value of title are also reported.

Today Button (htm)
to highlight the current date in the calendar.

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

Total # Payments draw period (htm)
Enter the total number of payments for this draw period.

Total excluded fees incl. RE (htm)
Displays the total of all fees from the Never Included and R. E.
Loan Special Exclusions tabs.

Total fees and charges (htm)
Displays the total of all fees from all three tabs.

Total Included Fees (htm)
the total of all fees from the Always Included tab.

Total periods per year Draw period (htm)
Enter the number of periods per year for this draw period.

Transfer fee/tax (htm)
the amount it costs to transfer ownership from the seller to the buyer.

transfer tax
Taxes levied by a state or local government when title passes from one owner to another. May be in the form of tax stamps.

treasury index
An index based on the results of auctions that the U. S. Treasury holds for its Treasury billsand securities or on the U. S. Treasury's daily yield curve. It is often used as an index upon which changes in rate for some adjustable-rate mortgage (ARM) plans are based.

Truth In Lending Disclosure Statement (htm)
This screen displays the Truth In Lending Statement,
as required by Regulation Z. Information includes the annual percentage rate
(APR), total finance charge, the amount financed, the total amount (including
principal and interest) that will be repaid by maturity, and the payment
schedule, including the total number of payments, payment amount, and payment
due dates.

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

truth-in-lending (TIL)
A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.

Turn What's This On (icon) (htm)
Click to turn on field-level Help for the current dialog box.

two-step mortgage
An adjustable-rate mortgage (ARM) that has one interest rate for the first five or sevenyears of its mortgage term and a different interest rate for the remainder of the amortization term.

unsecured loan
A loan that is not backed by collateral.

Update (htm)
Click to
update the current example with the current loan application information.

Upfront Mortgage Insurance Rate
The upfront mortgage insurance rate.

Up-front Rate (htm)
the initial mortgage insurance premium rate.

US Rule Accrual
This flag tells the engine whether the loan being structured is subject to the US Rule and should use US Rule amortization. US Rule amortization does not allow negative amortization or the charging of interest on unpaid interest. So, if a payment is not enough to cover the accrued interest, the unpaid accrued interest is carried separately and does not accrue additional interest nor increase the unamortized balance.

Useful life of this house
The number of years you intend to live in this house. The default is 15 years but you may change that if you like. Consider the number of years before you will downsize, need a bigger house or will probably move.

User Defaults (icon) (htm)
to display the user defaults dialog box.

User Defaults Screen (htm)
the default values for loan applications by selecting the desired values. You
can use the areas at the bottom of the screen to set the folders for the
default locations for your Study, Excel, Example, and QAPR files.

A loan, part of which is guaranteed by the Veterans Administration.

Verification of income
1. A current pay stub from borrower(s) employer.
2. W2's from the borrower(s) employer -- most recent two years.
3. Written verification of employment from the employer (lenders request this information directly from employer).
4. Federal tax returns for last two years and current period profit and loss statement for self-employed borrowers.

Veterans Administration (VA)
An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.

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