Welcome to our Glossary of Terms.   Here you will find descriptions of terms used throughout our web site and terms common in the industry.

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


Save Button (htm)
Click
to save modifications.


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


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


Save Study (icon) (htm)
Click
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
results.


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.

security
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)
Select
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)
Select
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
maturity.

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)
Select
if all payments will be made consecutively from the date of first payment until
maturity.


Skip Payments Yes (htm)
Select
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)
The
start date of the account.


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


Submit Button (htm)
Click
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
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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.


term
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
credit only calculation, the engine will calculate the term based on the borrowers’ ages.

Term (CON) (htm)
Enter
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)
Leave
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)
Enter
the year(s) for which the corresponding insurance rate applies.


title
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)
Click
to highlight the current date in the calendar.


Top Margin (htm)
Enter
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)
Displays
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)
Enter
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)
Enter
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)
Click
to display the user defaults dialog box.


User Defaults Screen (htm)
Set
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.


VA
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.

weekly/bi-weekly
When Payments are Due (htm)
Click the drop-down arrow and select the time period when payments are due.
The default is Monthly.


Withdrawal Amount
The amount of the regular withdrawal.

Withdrawal Amount (htm)
The
amount of the regular withdrawal.

Withdrawals
Check this box to enter withdrawal amounts.

Withdrawals (htm)
Check
this box to enter withdrawal amounts.


Withdrawals per Year
The number of withdrawal periods per year if the account includes regular withdrawals.

Withdrawals Per Year (htm)
The
number of withdrawal periods per year if the account includes regular
withdrawals.


Worksheet (htm)
Click
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.


Worksheet Name (htm)
Enter
the worksheet name for the Excel spreadsheet.


wraparound mortgage
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.

Year-end interest total (I) (htm)
Select to display the total of interest payments by the end of
the year on the amortization schedule.


Yearly Maintenance Costs
The average yearly cost of maintaining this house being purchased in this comparison. Since you are comparing with a rental where you will not have to maintain the property, you should include any costs you may incur which you would not incur if you rented.

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