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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Engine Output (htm)
Select
your default output option for the output preview screen.


Enhancement Report (htm)
Select
to submit a request for a program change.


Entire Commitment (htm)
Select
to charge interest on the entire construction loan amount, regardless of how
and when it is drawn.


Entire Schedule
Check this box and click the "Request Output" button to view the entire accrual schedule.

Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

equity
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.

Error Log (htm)
Displays
error messages caused by problems sending your e-mail.


escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of certain conditions. Deposits by borrowers of funds to pay taxes and insurance premiums when due are examples.

Escrow Amount
Enter the amount of this escrow payment.

Escrow Item
Select the escrow item that applies (mortgage insurance, city tax, property tax,…).

Escrow Item (htm)
Select
the desired escrow item from the list. If the item you want doesn't display,
type a new name over the current item.


escrow payment
The portion of a mortgagor's monthly payment that is held by the servicer to pay for taxes,hazard insurance, mortgage insurance, lease payments, and other items as they becomedue. Known as "impounds" or "reserves" in some states.

Escrow Tax/Insurance
Escrow Tax/Insurance

Escrow Use/Refund
This flag tells the engine whether the PMI renewal payments that are held in escrow will be used for the final payments in the case of a loan-to-value cutoff or refunded separately. If they are refunded separately, the term of the cutoff will not be credited by the number of months escrowed.

exact day
A regulation Z term describing the calculation of the exact number of days between two dates.

exact interest
Interest calculated on the exact number of days involved in a transaction.

examination of title
The report on the title of a property from the public records or an abstract of the title.

Existing Mortgage Balance
The balance remaining on the existing mortgage on the home. If there is no mortgage, this value is 0.

Exit (icon) (htm)
Select
to exit ZMath®.


Exponential (htm)
This
indicates if the deposits or withdrawals that are subject to an exponential
growth rate.


Export (htm)
Click to
export the worksheet with the specified settings.


extended Locks
Mortgage rate commitments which are for longer than the typical 12 to 30 day locks.

Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of consumer credit reports byconsumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.

fair market value
The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

Fannie 97®
A financing option for a fixed-rate mortgage that offers home buyers a 3 percent downpayment loan with either a 25- or 30-year term. The mortgage features a loan-to-value(LTV) percentage of 97 percent, and is designed to expand homeownership opportunities for people with modest incomes. Borrowers must take a pre-purchase home-buyer educationsession to qualify for a Fannie 97 mortgage.

Fannie Mae (FNMA)
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Over the past 30 years, Fannie Mae hasprovided nearly $2. 5 trillion of mortgage financing for over 30 million families

Fannie Mae's Community Home Buyer's ProgramSM
An income-based community lending model, under which mortgage insurers and Fannie Maeoffer flexible underwriting guidelines to increase a low- or moderate-income family's buyingpower and to decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model are required to attend pre-purchase home-buyer educationsessions.

Federal Home Loan Mortgage Corporation (FHLMQ)
A quasi-governmental agency that purchases conventional mortgages in the secondary mortgage market from insured depository institutions and HUD approved mortgage bankers. It sells participation sales certificates secured by pools of conventional mortgage loans, their principal and interest guaranteed by the federal government through theFHLMC. It also sells Government National Mortgage Association bonds to raise funds to finance the purchase of mortgages. Popularly known as Freddie Mac.

Federal Housing Administration (FHA)
An agency of the U. S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

Federal National Mortgage Association (FNMA)
See Fannie Mae

fee simple
The most extensive interest in land that can be enjoyed. It is of perpetual duration.

Fees and Charges Worksheets (htm)
Enter the fees and charges which should always be included or
always be excluded from a loan calculation. Use the Real Estate Loan Special
Exclusions tab to enter fees and charges which should be excluded from all
mortgages. Totals display at the beginning of the screen.


FHA
A loan insured by the Federal Housing Administration (of HUD).

FHA mortgage
A government-backed mortgage loan supported by the US FHA and the Department of Housing and Urban Development (HUD).

final Inspection
Home inspection made by a lender, VA, FHA or the appraiser after a new home or repairs have been completed.

finance charge
The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee and any other charges paid to the lender and/or broker.

finder's fee
A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower.

Finder's fee (htm)
Enter
the fee paid to someone who brings a borrower to a lender. If this fee is paid
by the borrower, it is always included in the finance charge.


firm commitment
A lender's agreement to make a loan to a specific borrower on a specific property.

First and Last Pages Only (htm)
Select to print only the first and last pages of the report.


First Month to Skip (htm)
Select
the first month to skip from the drop-down list.


first mortgage
A mortgage that is the primary (senior) lien against a property.

First Page (htm)
Click
to display the first page of the results.


First Year Property Charges
The first year property charges (i.e. taxes, insurance, etc.). This variable is Homekeeper specific and has no effect if you are calculating a HECM.

fixed rate loan (or mortgage)
A loan on which the interest rate which stays constant for the entire term of the mortgage.

Fixed rate mortgage
A type of mortgage loan usually with 30 or 15 year loan terms where the interest rate remains constant throughout the life of the loan. The advantages of a fixed rate loan is your own security that the interest rate will not increase. The disadvantage of a fixed rate loan occurs when interest rates substantially decline below the interest rate of your loan.

fixture
Personal property that becomes real property when attached in a permanent manner to realestate.

Flex ARM Loan Type
A Flex ARM Loan combines the features of a Graduated Payment Loan and a Random Rate Loan.

float
Electing to not lock in the interest rate between the time of application and closing.

flood insurance
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. It may not cover personal property.

floor
The rate below which the interest rate of an adjustable rate mortgage may not decline.

foreclosure
The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property atpublic auction with the proceeds of the sale being applied to the mortgage debt.

forfeiture
The loss of money, property, rights, or privileges due to a breach of legal obligation.

From (htm)
Select to
print a range of pages.


fully amortize
Reduce the balance of a loan to zero at term through regular payments of interest and principal.

fully amortized ARM
An adjustable-rate mortgage (ARM) with a monthly payment sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.

fully Indexed Rate
The index plus the margin for an adjustable rate mortgage.

Fully Indexed Rate (htm)
Displays
the borrower's interest rate, calculated by adding the Current Index and the
Margin and rounded by default to the nearest 1/8. Use System Defaults to change
the rounding factor.


funding fee
The fee paid and forwarded to the Veterans Administration to guarantee a VA home loan provided to a Veteran.

Future Value
Displays the future value of the account.

Future Value (htm)
Displays
the future value of the account.


gem
GEM (htm)
Select to
calculate a growing equity mortgage, where the borrower increases payment
amounts over a specified number of years.


GEM Loan Screen (htm)
Enter
the terms for a growing equity mortgage, where the borrower increases payment
amounts over a specified number of years. You must enter the interest rate,
periods per year, term, loan amount, prepaids, advance date, date of first
payment, graduation rate, and graduation period or error messages display.

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


General Entries (htm)
Displays
multiple stream identification number(s). When there are more than two streams,
ZMath® modifies this number automatically according to the first principal
payment date.


good faith estimate
A document provided at application that provides estimates for all charges which a borrower is likely to incur in connection with a loan closing.

Government fees (htm)
Enter
the recording fees for this loan, as charged by the County Recorder's Office to
enter the Deed, Mortgage, or Deed of Trust and, occasionally, additional
documents, requiring public notice.


government National Mortgage Association (GNMA)
A government-owned corporation within the U. S. Department of Housing and UrbanDevelopment (HUD). Created by Congress on September 1, 1968. GNMA performs the samerole as Fannie Mae and Freddie Mac the assumed responsibility for the special assistance loan program formerly administered by Fannie Mae. Popularly known as Ginnie Mae.

gparm
A loan combining a Graduated Payment Mortgage with an Adjustable Rate Mortgage (ARM).

GPARM (htm)
Select to
calculate a mortgage that combines graduated payments with an adjustable rate
mortgage.


GPARM Loan Screen (htm)
Enter
the terms for a graduated payment, adjustable rate mortgage. You must enter the
interest rate, periods per year, term, loan amount, prepaids, advance date, and
date of first payment or error messages display.

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


GPM
GPM (htm)
Select to
calculate a mortgage which has level payments for one year, at which time they
grow by a specified percentage amount (the graduation rate) for another year.
This continues for a specified number of years (the graduation period). At the
end of any particular year, the payment amount may be adjusted to pay off the
remaining balance over the number of years left to maturity.


GPM Loan Screen (htm)
Enter
the terms for a graduated payment mortgage. You must enter the interest rate,
periods per year, term, loan amount, prepaids, advance date, and date of first
payment or error messages display.

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


grace Period
A length of time (usually 15 days) after a mortgage payment is due in which the lender will not charge a late penalty or report the payment as late.

graduated payment mortgage
A type of mortgage where the monthly payments start low but increase by a fixed percentage at the end of each year for a specified number of years. At the end of this series of payments, the graduation period, the loan payments are in an amount large enough to to retire the loan at maturity. This means that the payments at the beginning are not sufficient to make the full principal payments and the outstanding balance actually increases.

graduation period
The number of periods (usually years) in a graduated payment loan that the payment will increase (by the graduation rate) until the loan ois recast.

Graduation Period (Years) (htm)
Enter the number of periods that the payment will increase by the
graduation rate before the loan is recast.


graduation rate
The rate per year that the interest rate on a graduated payment loan will increase.

Graduation Rate (htm)
Enter
the amount by which the payments will be increased for the year. For example,
entering 20 will mean that the payments will increase by 20% for each year
during the graduation period.


grantee
The person to whom an interest in real property is conveyed.

grantee
The party to whom title to real property is deeded.

grantor
The person conveying (or deeding) title to real property to another.

gross income
Total income before any expenses are deducted.

gross monthly income
The total amount the borrower earns per month, not counting any taxes or expenses. Often used in calculations to determine whether a borrower qualifies for a particular loan. growing-equity mortgage (GEM)A fixed-rate mortgage that provides for payments which increase by a specified percent at the end of each year for a specified number of years. The increasing monthly payment amounts reduce the balance of the mortgage resulting in its being repaid sooner.

Growth
Check this box to select the deposit/withdrawal growth rate (linear or exponential).

Growth (Deposits) (htm)
Check
this box to select the deposit growth rate (linear or exponential).


Growth (Withdrawals) (htm)
Check
this box to select the withdrawal growth rate (linear or exponential).


Growth Rate (htm)
The
growth rate for accounts where the deposits or withdrawals will graduate at a
constant rate.


guaranteed mortgage
A mortgage, the payment of which, is guaranteed by a third party.

guaranty
Amount of money VA will reimburse a lender upon default of a VA mortgage. Also referred to as the amount of entitlement or eligibility.

hazard insurance
Insurance against physical damage to property from fire, wind, vandalism, and other hazards.

Hazard Insurance
This is the annual premium for insurance against losses from risks such as fire, wind, hail, flood etc. If you will have homeowners insurance you will want to include that portion of the premium allocable to the real estate. (Exclude that part covering vehicles etc.)

Header Text (htm)
Enter
the desired header text (up to three lines) for the amortization schedule.


HECM 2013 File dated 9/30/2013
Note: Multiple runs of the calculator may be required based on the results and choices made by the borrower.

HECM File dated 9/30/2013 - 8/3/2014
Note: Multiple runs of the calculator may be required based on the results and choices made by the borrower.

HECM File post 8/4/2014
Note: Multiple runs of the calculator may be required based on the results and choices made by the borrower.

HECM Rates
Select 'Yes' to use Pre- October 1, 2009 rates.

Select 'No' to choose the latest rates.

HECM/FNMA Flag
This flag tells the engine whether it is calculating a HECM or a FNMA HomeKeeper program.

Help (icon) (htm)
Click
to display the ZMath® Help file.


Help (QS) (htm)
Click
to display online Help for the Quick Solver.



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