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
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.Save as Default
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
Click to save the current study, or loan application, as the defaultSave Button (htm)
for future studies.
ClickSave Default Button (htm)
to save modifications.
ClickSave Savings (htm)
to save the information on the three Worksheet tabs as the default values for
ClickSave Study (icon) (htm)
to save the current study file or savings record.
to save the current study, or loan application.
Click to analyze all transaction data, apply the calendar math,Second home
calculate the Regulation DD disclosures, prepare schedules, and produce the
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.security
Property which will be pledged as collateral for a secured loan.Select (htm)
Click toSelling Costs Factor
select the highlighted sample file.
The factor you expect to pay for selling the home. ie. 7.5% would be entered as 7.5Settlement 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 completedsettlement 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)
SelectShow Terms Assumption
to display gridlines in the amortization schedule.
Select to ?. Deselect to ?. Single Disbursement Only
Use Remaining Net Principal Limit for credit line or payment single payment loan
Initial Disbursement Only
Any loan which will be paid in a single payment of principal and interest at maturity.Single Payment Loan (htm)
SelectSingle Payment Loan
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.
Enter the terms for the single payment loan (a loan with only oneSkip Payments No (htm)
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.
SelectSkip Payments Yes (htm)
if all payments will be made consecutively from the date of first payment until
Selectskipped payment loan
if the borrower wants to skip consecutive payments each year (for example, July
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 tospecial assessments
calculate the missing field value.
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 MortgageStart Date
The start date of the account.Start Date (htm)
TheStart page (htm)
start date of the account.
EnterSubmit Button (htm)
the starting page number for the range of pages you want to print.
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
finance charges (htm)
Enter the dollar amount of any finance charges which willsweat equity
be due after the closing of the construction loan, such as re-appraisal fees,
inspection fees, and so on.
Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash.System Defaults
Click to display the System Defaults dialog box. System Switches
Set the values for your copy of ZMath by entering the desired valuestax rate-effective
in the fields. When finished, click Save.
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
Request help, submit a wish list, or file a bug report by selectingterm
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 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
The term (total number of payments) in the mortgage. If this is zero or a line of Term (CON) (htm)
credit only calculation, the engine will calculate the term based on the borrowers’ ages.
the term (total number of payments) for the construction period.
Enter theTerm (QS) (htm)
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.
LeaveTerm (Total # Int.
this field empty to solve for the Term of the loan, when you have entered
something for the Loan Amount and Payment Amount.
Enter the total number ofTerm of Loan (in years)
Over how many years would you like to pay off the loan secured by the house in this comparison. third-party origination
Typical terms are 15 or 30 years.
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
Enter the amount of the title insurance premium, which protects thetitle search
borrower against losses due to title defects for a specific piece of property.
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)
ClickTop Margin (htm)
to highlight the current date in the calendar.
EnterTotal # Payments draw
the top margin in tenths of an inch, or accept the default.
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. Total fees and
Loan Special Exclusions tabs.
Displays the total of all fees from all three tabs. Total Included Fees (htm)
DisplaysTotal periods per
year Draw period (htm)
the total of all fees from the Always Included tab.
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.
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,truth-in-lending (TIL)
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
You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.
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
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 toUpfront Mortgage Insurance Rate
update the current example with the current loan application information.
The upfront mortgage insurance rate.Up-front Rate (htm)
EnterUS Rule Accrual
the initial mortgage insurance premium rate.
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)
ClickUser Defaults Screen (htm)
to display the user defaults dialog box.
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. Veterans Administration (VA)
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.
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.weekly/bi-weeklyWhen Payments are Due
Click the drop-down arrow and select the time period when payments are due. Withdrawal Amount
The default is Monthly.
The amount of the regular withdrawal.Withdrawal Amount (htm)
amount of the regular withdrawal.
Check this box to enter withdrawal amounts.Withdrawals (htm)
CheckWithdrawals per Year
this box to enter withdrawal amounts.
The number of withdrawal periods per year if the account includes regular withdrawals.Withdrawals Per Year (htm)
number of withdrawal periods per year if the account includes regular
ClickWorksheet Name (htm)
to display the Fees and Charges Worksheet, where you enter fees that must be
always included in the calculation, those that are never included, and any
special exclusions for real estate loans.
the worksheet name for the Excel spreadsheet.
A mortgage that includes the remaining balance on an existing first mortgage plus an additional amount requested by the mortgagor. Full payments on both mortgages are made to the wraparound mortgagee, who then forwards the payments on the first mortgage to the first mortgagee.XML Close Button
Click here to close the XML Preview window.XML Close Button
Click here to close the XML Preview window.XML Detail
The XML Detail check box, when checked, will display all the XML details available from the engine. Normally, just the data name and value are included in the XML Output. Additional data that is displayed when this option is selected includes the data type and the data definition of each field.XML Detail
The XML Detail check box, when checked, will display all the XML details available from the engine. Normally, just the data name and value are included in the XML Output. Additional data that is displayed when this option is selected includes the data type and the data definition of each field.XML Request Output Button
Click here to refresh the XML Preview window if you have selected different options.XML Request Output Button
Click here to refresh the XML Preview window if you have selected different options.XML Structure
The XML Structure check box, when checked, will display all the XML definitions available from the engine. Normally, only data fields are displayed that contain values (non-zero or non-blank). When this box is checked, all fields are output regardless of their value.XML Structure
The XML Structure check box, when checked, will display all the XML definitions available from the engine. Normally, only data fields are displayed that contain values (non-zero or non-blank). When this box is checked, all fields are output regardless of their value.
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